February 21, 2002
DAR OPINION NO. 08-02
Mr. Herminio Mateo
San Jose Del Monte, Bulacan
Dear Mr. Mateo
This refers to your Petition for Favorable Indorsement and/or Recommendation by the Hon. DAR Secretary for the Issuance of a "Certificate of the Land Bank to Finance the Redemption" in the Amount of Pesos : Eight Hundred One Thousand (P801,000.00), Representing the Reasonable Redemption Price of the Farmlots of Virginia P. Mateo and Paulino Mateo Containing an Area of 1.7741 Hectares, More or Less, and 1.500 Has., More or Less, Respectively, Both Being Situated at Sapang Palay, San Jose Del Monte, Bulacan and Registered in the Name of Hacienda Sapang Palay Under Transfer Certificate of Title No. T-5669.
You stated that in the case at bar, the complaint for legal redemption was originally initiated by the Office of the Provincial Agrarian Reform Officer (PARO) of Baliuag, Bulacan, with the Provincial Agrarian Reform Adjudicator, Malolos, Bulacan, on September 19, 1995. You further alleged, among others, that the Provincial Adjudicator decided in favor of plaintiffs Virginia and Paulino Mateo's right of redemption which was affirmed on appeal by the DARAB Central Office. However, a motion for reconsideration was filed by the defendants. Thus, this petition. TSEAaD
The basic provision of law on this issue is Section 12 of R.A. No. 3844, as amended by Section 2 of R.A. No. 6389, quote:
"Section 2. Section 11 and 12 of the same Code are hereby amended to read as follows:
"Sec. 11. . . . .
"Sec. 12. Lessee's right of Redemption. — In case the landholding is sold to it third person without the knowledge of the agricultural lessee, the latter shall have the right to redeem the same at a reasonable price and consideration; Provided, That where there are two or more agricultural lessees, each shall be entitled to said right of redemption only, to the extent of the area actually cultivated by him. The right of redemption under this Section may be exercised within one hundred eighty days from notice in writing which shall be served by the vendee on all lessees affected and the Department of Agrarian Reform upon the registration of the sale, and shall have priority over any other right of legal redemption. The redemption price shall be the reasonable price of the land at the time of the sale.
"Upon the filing of the corresponding petition or request with the department or corresponding case in court by the agricultural lessee or lessees, the said period of one hundred and eighty days shall cease to run.
"Any petition or request for redemption shall be resolved within sixty days from the filing thereof; otherwise, the said period shall start to run again.
"The Department of Agrarian Reform shall initiate, while the Land Bank shall finance, said redemption as in the case of preemption." (emphasis supplied)
In relation thereto, paragraphs 2 and 5 of Land Bank of the Philippines Circular Letter No. 3 dated 25 February 1980, the implementing rules and regulations of Section 12 of R.A. 3844, as amended by Section 2, R.A. No. 6389, pertinently states:
"2. All proposals for Land Bank financing of land acquisition through pre-emption or redemption must carry the favorable endorsement of the Minister of Agrarian Reform.
xxx xxx xxx
5. Upon direction of the Court of Agrarian Relations (now DAR Adjudication Board), or upon recommendation of the Minister of Agrarian Reform (now DAR Secretary), the Land Bank may issue appropriate certification as to availability of funds in lieu of cash and bond deposits to finance the acquisition of landholding subject of pre-emption or redemption. . . . (emphasis supplied)
Considering that the petition for redemption favorably decided by the DARAB has not yet become final since a motion for reconsideration was filed, we believe we still have to await the finality of the DARAB's decision.
There are two (2) mutually exclusive remedies provided under the aforequoted Section 12 of R.A. No. 3844, as amended by Section 2 of R.A. No. 6389 for the exercise of the tenant-lessee's right of redemption. One is the filing of the corresponding petition or request with the Department, and, the other is the filing of a corresponding case in court (now DARAB), as herein resorted to. Thus, pursuant to the aforequoted paragraph 5 of Land Bank Circular No. 3, it is the DARAB that should issue the Order directing the Land Bank to issue the appropriate certification as to the availability of funds to finance the acquisition of landholdings subject of redemption.
In sum, since the matter involves an actual controversy which appears to be still pending with the DAR Adjudication Board, a separate and independent action by the DAR Secretary thereon will partake of the nature of an interference with a matter that is sub-judice or unduly pre-empt DARAB from discharging its duties based on its own findings.
Parenthetically, it is not necessary for the tenants-redemptioners to make a tender and/or consignation of the redemption price, as a certification of the Land Bank to finance the redemption will suffice for the purpose [Mallari vs. Court of Appeals (161 SCRA 503)]. caADIC
We hope to have clarified the matter.
Very truly yours,
(SGD.) VIRGILIO R. DE LOS REYES
Undersecretary for Policy, Planning and
Legal Affairs Office
Copy furnished:
Provincial Agrarian Reform Adjudicator
DAR Provincial Office
Malolos, Bulacan
PARO Miguel Mendoza
DAR Provincial Office
Aquino Ave., Baliuag, Bulacan
The Municipal Agrarian Reform Officer
DAR Municipal Office
Sapang Palay, San Jose Del Monte City
Bulacan