G.R. No. 170018 - DEPARTMENT OF AGRARIAN REFORM, REPRESENTED BY OIC-SECRETARY NASSER C. PANGANDAMAN, VS. THE COURT OF APPEALS AND BASILAN AGRICULTURAL TRADING CORPORATION (BATCO).D E C I S I O N - Supreme Court E-Library

Ruling

accordingly identified. After which, DAR Regional Director Rogelio E. Tamin (Director Tamin) directed the PARO to generate and issue the corresponding Certificates of Land Ownership (CLOAs) in favor of the identified beneficiaries even over BATCO's protest. [25] On February 9, 1998, then DAR Secretary Ernesto Garilao directed Director Tamin and the PARO to proceed with the registration and distribution of the CLOAs to the said identified beneficiaries. [26] In a letter dated March 2, 1998 to Director Tamin, [27] BATCO requested for the exemption of the subject portion, citing the case of Luz Farms v. DAR Secretary [28] ( Luz Farms ) and DAR Administrative Order No. (AO) 09, Series of 1993 [29] (DAR AO 09-93). [30] On May 6, 1998, BATCO filed before the DAR Regional Office a petition [31] for the exemption of the subject portion from the coverage of the government's Comprehensive Agrarian Reform Program (CARP). It alleged that almost all of the entire subject lands have been devoted to cattle and livestock production since their acquisition in 1987, [32] warranting their exemption from CARP coverage in accordance with the ruling in Luz Farms and the provisions of DAR AO 09-93. It claimed that as of March 15, 1998, there were 150 heads of cattle, 50 heads of swine, and 50 heads of goats in the subject portion. [33] Meanwhile, BATCO's certificates of title over the foregoing were cancelled and new titles were issued in the name of the Republic on July 17, 1998. [34] The DAR Regional Directors Ruling On August 12, 1998, Director Tamin issued an Order [35] (August 12, 1998 Order) dismissing BATCO's petition, holding that based on the DAR's ocular inspection/investigation, the subject portion was not exclusively, directly and actually used for livestock, poultry, and swine raising as of June 15, 1988[,] the date of effectivity of RA 6657, and contrary to the spirit and intent of [DAR AO 09-93]. [36] Hence, the subject portion is not exempt from CARP coverage. Moreover, under DAR AO 09, Series of 1990, VOS of lands to the government, with the exception of lands within the retention limits, may no longer be withdrawn. [37] BATCO appealed [38] to the Office of the DAR Secretary, reiterating [39] its claim that the subject portion was devoted to cattle production prior to June 15, 1988 as evidenced by the appended certificates of ownership of large cattle (certificates of livestock ownership) which, according to it, should have been the major basis in the determination of whether or not a particular landholding is devoted to such production, as claimed. [40] In the interim, the Republic's certificates of title were cancelled on October 6, 1998 with the registration of the CLOAs in the name of MCFARMCO for the benefit of its 54 members. Accordingly, new certificates of title, [41] i.e. , TCT Nos. T-1012, T-1013, and T-1014, were issued in favor of MCFARMCO. The DAR Secretarys Ruling On February 25, 1999, then DAR Secretary Horacio R. Morales, Jr. (Sec