June 10, 1994

DAR OPINION NO. 35-94

Mayor Vitaliano D. Agan

Zamboanga City

Dear Mayor Agan:

This has reference to Resolution No. 559 dated April 28, 1994 of the Sangguniang Panlungsod relative to the former Yupangco Estate at Buenavista, Zamboanga City, subject of your letter of 5 May 1994. Said Resolution No. 559 is a request for the DAR Secretary to issue a ruling on whether or not Mr. Billy Hagie, former Resident Manager of the Yupangco Cotton Mills Corporation, Inc. is entitled to the fruits of the coconuts on said estate on the basis of the status quo order dated December 3, 1993 of Regional Adjudicator Cesar Ebol.

In this connection please be informed that per report to the DAR Secretary dated 10 May 1994 of DAR Region IX Director Rogelio E. Tamin, RARAD Ebol issued an Order dated 3 May 1994, the pertinent provision of which reads:

". . . in the light of the foregoing, it is hereby clarified that the transfer of jurisdiction of the instant case to the Office of the Secretary, thru the DAR Regional Director Rogelio Tamin, shall mean the automatic lifting of the Status Quo Order issued by this Adjudicator on December 3, 1993"

Moreover, on 16 May 1994, the DAR issued a decision relative to the Petition for the Issuance of a Restraining Order or Injunction filed by the Federal Agricultural Corporation, Inc. which in substance denies said petition; directs the Regional Director to proceed with the compulsory acquisition of the Yupangco estate; and directs the filing by any interested party of the necessary petition with the Adjudication Board having jurisdiction over the property for the cancellation, amendment or revision of the lease contract in favor of Federal Agricultural Corporation.

In view of the allegation that the lease contract is a ploy to circumvent agrarian reform laws and the fact that, as explained in the DAR decision of 16 May 1994, the DAR cannot rule administratively on the issues pertaining to said lease contract (including entitlement to the fruits by virtue thereof), the same properly fall within the jurisdiction of the DARAB and must be raised before it.

Attached please find a copy of the said DAR Decision dated 16 May 1994 for reference.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office

Copy furnished:

HEA Clifford C. Burkley

Doc. No. 94-05-0459

The Regional Director

DAR Region IX

Zamboanga City

The PARO

DAR, Zamboanga City

Cesar Ocampo

President, BYARBA, Inc.

Buenavista, Zamboanga City