August 29, 2003
DAR OPINION NO. 15-03
MEMORANDUM
FOR : Jose Mart B. Ponce
Undersecretary, Support Services Office and Concurrent Chairman, Alternative Venture Agreement-Task Force (AVA-TF)
SUBJECT : Request for Legal Opinion on the Petition for Review of the Lease Contract Between the Tagnanan CARP Beneficiaries Cooperative
(TCBC) and the Nova Vista Management and Development Corporation (NVMDC)
This refers to your Memorandum dated 25 July 2003 requesting for a legal opinion on the above subject. Upon perusal of the documents attached to said Memorandum, the following facts are revealed: cCAIDS
The TCBC and NVMDC entered into a contract for the lease of a 1,005-hectare property formerly owned by Tagnanan Estate, Inc. (TEI) located in Mabini, Davao del Norte for a period of thirty (30) years pursuant to a Memorandum of Agreement between said parties and the previous landowner on 26 June 1992. After a lapse of more than ten (10) years, TCBC seeks to nullify the lease contract based on various grounds cited in its petition. TCBC submits the said contract to DAR/PARCCOM for review with a prayer for disapproval and for an order directing the parties to enter into a new agreement.
Pertinent to your query are the provisions of Republic Act No. 6657 (Comprehensive Agrarian Reform Law) and the Department of Agrarian Reform Adjudication Board (DARAB) 2003 Rules of Procedure, to wit:
1. Section 50 (1st paragraph) of R.A. No. 6657:
"Section 50. Quasi-Judicial Powers of the DAR. — The DAR is hereby vested with primary jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive original jurisdiction over all matter involving the implementation of agrarian reform, except those falling under the exclusive jurisdiction of the Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR)."
2. Section 1 (1.1 and 1.9) of DARAB 2003 Rules of Procedure:
"Section 1. Primary and Exclusive Original Jurisdiction. — The Adjudicator shall have primary and exclusive original jurisdiction to determine and adjudicate the following cases:
1.1 The rights and obligations of persons, whether natural or juridical, engaged in the management, cultivation, and use of all agricultural lands covered by Republic Act (RA) No. 6657, otherwise known as the Comprehensive Agrarian Reform Law (CARL), and other related agrarian laws;
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1.9 Those cases involving the annulment or rescission of lease contracts and deeds of sale. . . ."
In view of the foregoing, it is our considered opinion that DARAB has jurisdiction over the matter. However, voluntary methods such as negotiation, mediation and/or conciliation shall be preferred in resolving the issue.
Further, it should be stressed that the provisions of PARC EXECOM Policy No. 1, series of 1997 (Policy Guidelines on Joint Venture Agreements Between DAR and Other Interested Parties and on the Processing of Applications for Lease Back Arrangements, Joint-Venture Agreements and Other Schemes That May Be Recommended by the PARCCOM to the PARC) and DAR Administrative Order No. 2, series of 1999 (Rules and Regulations Governing Joint Economic Enterprises in Agrarian Reform Areas) may not be applicable since the lease contract in issue was executed and long been consummated (i.e., 26 June 1992) prior to the issuance of the aforementioned guidelines.
Accordingly, neither the DAR-SSO/AVA-TF nor the PARCCOM may evaluate and/or review the lease contract for purposes of determining whether or not it is legally infirmed, or, null and void.
We hope to have clarified the matter and please be guided accordingly.
Thank you.
(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning
and Legal Affairs Office