December 13, 1996
DAR OPINION NO. 103-96
OIC-PARO Cynthia Cardenas
DAR Provincial Office
Calapan, Oriental Mindoro
Dear PARO Cardenas:
This refers to the request of then PARO Lorenzo U. Comendador for legal opinion as to whether DAR Clearance can be issued to the Casas Development Corporation (CADECOR) for the transfer of its properties to Basilisa Farms, Inc. (BFI) in view of the merger of the corporations.
The position paper submitted by Mr. Samuel Casas Lim, President, CADECOR, states among others the following: that the merging corporations have identical owners-shareholders and that they have decided and agreed to consolidate ownership of the properties within the CADECOR FARM and BASILISA FARMS; that the CADECOR properties to be transferred and consolidated consist of about 37 parcels of agricultural land with improvements thereon, with titles issued in its name particularly Transfer Certificate of Title Nos. T-34100 to T-34335, all located at Bansud/Bongabon, Oriental, Mindoro; and it is intended that thru consolidation of titles and farms unto just one corporation, the BFI, the management thereof can simplify managerial system, project implementation procedures, etc.
The letter states that PARO Comendador does not interpose objection to the merger but said merger will not in effect hamper the DAR in subjecting the landholding of the retained corporation under CARP pursuant to R.A. 6657. We find said opinion to be proper.
We submits, notwithstanding the provision of the last paragraph of Section 6 of R.A. 6657 which provides that upon its effectivity on 15 June 1988, "any sale, . . . transfer of possession of private agricultural land executed by the original landowner in violation of this Act shall be null and void, that the requested DAR Clearance for the registration of the transfer and consolidation of ownership of the subject parcels of farmlots be issued; without prejudice however, to CARP coverage of said parcels of farmlot.
We are returning herewith the pertinent documents for resolution of the request for DAR clearance.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy Furnished:
Mr Samuel Casas Lim
President, CADECOR
Suite 10002 Ermita Center Bldg.
1350 Roxas Blvd., Ermita, Manila