September 15, 2014

DAR ADMINISTRATIVE ORDER NO. 07-14

 

PREFATORY STATEMENT

Republic Act (R.A.) No. 6657, as amended by R.A. No. 9700, Executive Order (E.O.) No. 229, Presidential Decree (P.D.) No. 27, E.O. No. 228, R.A. No. 3844, as amended by R.A. No. 6389, and other agrarian laws prescribe the manner of acquisition, re-distribution, and award of agricultural lands to qualified farmer-beneficiaries with corresponding rights and obligations. The awards of land to qualified beneficiaries are evidenced by Emancipation Patents (EPs) and Certificates of Land Ownership Award (CLOAs).

The titles generated and distributed pursuant to the agrarian reform program form an integral part of the property registration system, and enjoy the same degree of importance and weight accorded to titles issued and registered under the Torrens System.

Section 24 of R.A. No. 6657, as amended, states, ". . . the emancipation patents, the certificates of land ownership award, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Registry of Deeds subject to the conditions, limitations and qualifications of this act, the property-registration decree, and other pertinent laws."

Moreover, the Department of Agrarian Reform (DAR) Secretary has the exclusive and original jurisdiction on cases for cancellation of the aforesaid titles. Section 24 of R.A. No. 6657, as amended, states: "All cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program are within the exclusive and original jurisdiction of the Secretary of the DAR". Considering, however, that the proximity to the subject landholding of the Adjudicators of the DAR Adjudication Board (DARAB), which previously had jurisdiction to resolve cancellation cases, are closer than that of the Secretary, they are now tasked to undertake the case build up therefor, but not to resolve them, to ensure that due process is properly accorded to the parties involved. TESICD

This amendatory Administrative Order is accordingly issued to highlight the indefeasibility of the EPs, CLOAs, and other titles distributed under agrarian reform, emphasize due process in the cancellation proceedings, streamline the cancellation process before the DAR Secretary, protect the interest of the farmer beneficiaries, and improve the access to justice of farmers before the DAR.

ARTICLE I

General Provisions

SECTION 1. Coverage. — These rules of procedure ("Rules") shall apply to all cases involving the involuntary cancellation of individual registered EPs, CLOAs, and other titles issued by the DAR under any agrarian reform program, except in the following instances:

(a) Cancellation of EPs, CLOAs, or other titles on the ground of erroneous technical descriptions that will not, however, result in a decrease in the number, increase in the number, or change of beneficiaries as enunciated under Administrative Order No. 6, Series of 2014;

Transfer of awarded lands to the heir/s of a deceased beneficiary;

(b) Correction of typographical errors/entries, as the same falls within the jurisdiction of the DARAB, where correction therein is defined as the process of correcting or changing clerical or typographical errors in the title without, however, affecting the substantial rights of other interested persons; or

(c) Other analogous circumstances.

SECTION 2. Statement of Policies. — The cancellation of EPs, CLOAs, and other titles issued by the DAR pursuant to agrarian reform laws shall be governed by the following policies:

(a) The State recognizes the indefeasibility of EPs, CLOAs, and other titles issued under any agrarian reform program; and

(b) The cancellation of registered EPs, CLOAs, and other titles issued under any agrarian reform program shall be strictly regulated and may be allowed only in the manner and conditions prescribed hereunder.

SECTION 3. Definition of Terms. — For purposes of these Rules, the following terms are defined as follows:

(a) Agrarian Law Implementation (ALI) Case — is an administrative matter involving disputes or controversies such as the identification of beneficiaries, exemption from coverage, and the like, in the implementation of agrarian reform laws which falls under the exclusive jurisdiction of the DAR Secretary or his/her authorized representative and the Regional Director. This shall also include ALI cases covered by special Administrative Orders (A.O.s) such as, but not limited to, cases for exemption or exclusion from coverage and conversion. cAaDHT

(b) Agrarian Reform Beneficiary — refers to farmers who were granted lands under P.D. No. 27 and R.A. No. 6657, as amended, and regular farmworkers who are landless, irrespective of tenurial arrangement, who benefited from the redistribution of lands, as evidenced by an EP or a CLOA.

(c) Cancellation — refers to the process of annulling, invalidating, and revoking the EPs, CLOAs, or other titles issued under the agrarian reform program, including the correction of technical descriptions where vested rights will be affected, as well as the addition or removal of any beneficiary.

(d) Case Control Number — refers to the number assigned by the clerk of the Provincial Agrarian Reform Adjudicator (PARAD) to the petition for cancellation received by it for monitoring purposes and for the determination of case folders actually transmitted by the PARAD, which number shall be substantially adopted up to the Office of the Secretary (OSEC) level. The case control number shall be in a format distinct from ordinary DARAB cases. The docketing of cases per title should also be adopted in the assignment of case control numbers.

(e) Comment — refers to the verified responsive pleading of the respondent either admitting or denying the allegations in the petition and setting forth his/her defenses. The respondent may attach affidavit/s or counter-affidavit/s and other relevant documents to the comment, pre-marked as Exhibits "1", "2", "3", and so forth.

(f) Common Interest — on the basis of the definition lifted from the Scotts vs. Donald case (165 U.S. 107, 41 Ed. 447, 52 S. Ct. 217), as cited in Sulo ng Bayan vs. Araneta, et al.(G.R. No. L-31061, August 17, 1976), refers to the interest that will allow parties to join in a complaint, petition, or legal action, for having not only an interest in the question, but one in common in the subject matter of the suit. It is a community of interest growing out of the nature and condition of the right in dispute; for, although there may not be any privity between the numerous parties, there is a common title out of which the question arises, and which lies at the foundation of the proceedings.

(g) Farmer Beneficiaries — refer to Agrarian Reform Beneficiaries (ARBs).

(h) Final Order or Resolution — is an order or resolution that disposes of the subject matter in its entirety or terminates a particular proceeding or action, leaving nothing else to be done but to enforce by execution what has been determined by the court, quasi-judicial body, or tribunal.

(i) Exclusive Jurisdiction — is the power to adjudicate a case to the exclusion of all other courts and quasi-judicial bodies. It is that forum in which an action must be commenced because no other forum has the jurisdiction to hear and determine the action.

(j) Indispensable Party — is a party who has such an interest in the controversy or subject matter that a final adjudication cannot be made in his absence, without injuring or affecting that interest. Agrarian reform beneficiaries or identified beneficiaries, or their heirs in case of death, and/or their associations are indispensable parties in petitions for cancellation of their respective EPs, CLOAs, or other title issued to them under any agrarian reform program. The fact of non-registration of such associations with the Securities and Exchange Commission, Cooperative Development Authority, or any other concerned government agency, shall not be used against them to deny the existence of their legal standing and interest in a case filed before the DAR.

(k) Investigation Proceeding — is the process of verifying the allegations in the petition and the comment.

(l) Misuse of the Land — is any act causing substantial and unreasonable damage on the land, and causing the deterioration and depletion of its soil fertility and improvements thereon. CSaHDT

(m) Necessary Party — is not an indispensable party but ought to be a party if complete relief is to be accorded as to those already parties, or for a complete determination or settlement of the claim subject of the action. Except when the concerned Provincial Agrarian Reform Program Officer (PARPO) is himself the petitioner, in cases for cancellation, the PARPO shall be impleaded as party-respondent where it would be incumbent upon him/her to defend the propriety of the issuance of the subject title. All oppositors to the cancellation of an EP or CLOA shall be impleaded as a necessary party.

(n) Neglect or Abandonment — refers to a clear and absolute intention to renounce a right or a claim, or to abandon a right or property, coupled with an external act by which that intention is expressed or carried into effect. Intention to abandon implies a departure, with the avowed intent of never returning, resuming, or claiming the right and the interest that have been abandoned. It consists in any one of these conditions: (a) failure to cultivate the lot due to reasons other than the non-suitability of the land to agricultural purposes, for at least two (2) calendar years, and to pay the amortizations for the same period; (b) permanent transfer of residence by the beneficiary and his family, which has rendered him incapable of cultivating the lot; or (c) relinquishment of possession of the lot for at least two (2) calendar years and failure to pay the amortization for the same period. 

The failure to cultivate the awarded land due to old age, physical incapacity, and/or other natural causes shall not be considered as neglect or abandonment.

(o) Nominal Party — refers to the party to an action who is connected to the case, but without any interest or prejudice, so that the tribunal can resolve certain issues or have all the evidence proved with his help to give a proper judgment. This nominal party will not be affected by the result of the case and is not at fault or considered for any benefits out of it. In cases for cancellation, the Register of Deeds (ROD) of the place where the land covered by EPs, CLOAs, or titles sought to be cancelled is situated must be impleaded as party-respondent.

(p) Original Jurisdiction — is the power to take cognizance of a case at its inception, try it, and pass judgment thereon upon the law and facts.

(q) Pauper or Indigent Litigant — is a party who is a farmer, agricultural lessee, tenant, farm worker, actual tiller, occupant, collective or cooperative of the foregoing beneficiaries, or amortizing owner-cultivator, and who shall allege in the verified complaint/petition or sworn statement such fact of being an indigent or pauper litigant without need of further proof.

(r) Petition for Cancellation — is a verified pleading alleging the grounds relied upon by the petitioner in seeking the cancellation of the subject EPs, CLOAs, or other titles issued under any agrarian reform program, which shall be duly supported by original or certified true or photocopies of relevant documents together with affidavits of witnesses, and accordingly pre-marked as Exhibits "A", "B", "C", and so forth. DCcHIS

The petition must include as party-respondents the concerned holders or successors-in-interest of EPs, CLOAs, or other titles issued under any agrarian reform program.

The filing of joint petitions for cancellation without common interest among the petitioners, identity of landholdings, and the like, is hereby strictly prohibited.

(s) Premature Conversion — refers to the undertaking of any development activity, the result of which may modify or alter the physical characteristics of the agricultural land as would render it suitable for non-agricultural purposes, without an approved conversion order from the DAR, pursuant to Section 11 of R.A. No. 8435.

(t) Re-allocation — refers to the process of substituting the farmer beneficiary on a specific landholding because the said beneficiary is found to be disqualified in an administrative proceeding. The grounds for re-allocation include but are not limited to the following: (1) abandonment, (2) waiver of rights to become a beneficiary, and (3) commission of illegal transactions such as the transfer of rights or ownership of the awarded land without the written consent and approval of the DAR Regional Director concerned.

ARTICLE II

Grounds for Cancellation

SECTION 4. Grounds. — The following are the grounds for the cancellation of EPs, CLOAs, and other titles issued under any agrarian reform program:

1. The landholding involves the retention area of the landowner provided that the retention right was exercised by the latter within the period allowed by the applicable laws or rules from the receipt of the Notice of Coverage;

2. The landholding is excluded or exempted from coverage of CARP, P.D. No. 27, or any other agrarian reform laws provided that the application for exclusion thereof was filed within the period allowed by the applicable laws or rules from receipt of the Notice of Coverage;

3. Defective or irregular Notices of Coverage (NOCs) amounting to lack of notice, due to, among others, improper service thereof, or erroneous identification of the landowner or landholding;

4. The landholding falls under the exclusive authority of the Department of Environment and Natural Resources (DENR) or the National Commission on Indigenous People (NCIP);

5. Erroneously-issued titles as a result of:

a. Erroneous technical description of the covered landholding, where: DcTAIH

i. one or more of the affected beneficiaries does not consent to the procedures set forth in A.O. No. 6, Series of 2014; or

ii. the cancellation of the title will result in a decrease in the number, increase in the number, or change of beneficiaries;

b. the cancellation of the landowner's title prior to the issuance of the Certificate of Deposit (COD), in the case of CLOAs;

6. Nullification of DAR Clearance;

7. Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of R.A. No. 6657, as amended;

8. Misuse of the land;

9. Material misrepresentation of the ARB's basic qualifications as provided under Section 22 of R.A. No. 6657, as amended, P.D. No. 27, and other agrarian laws;

10. Premature conversion by the ARB pursuant to Section 73 (F) of R.A. No. 6657, as amended and Section 11 of R.A. No. 8435;

11. Sale, transfer, lease, or any other form of conveyance by a beneficiary of the right of ownership, right to use, or any other usufructuary right over the land acquired by virtue of being a beneficiary, in order to violate or circumvent the provisions of Sections 27 and 73 of R.A. No. 6657, as amended, P.D. No. 27, and other agrarian laws;

12. Deliberate and absolute non-payment of three (3) consecutive amortizations in case of voluntary land transfer/direct payment scheme, provided that the ARB has been installed and is in actual possession of the land, and provided further that the last proviso will not apply if the non-possession of the ARB is attributable to his or her own fault;

13. Deliberate and absolute failure of the ARB to pay at least three (3) annual amortizations to the Land Bank of the Philippines (LBP), provided an amortization table has been issued to the ARB, and provided further that the amortizations shall start one (1) year from the ARB's actual occupancy pursuant to Section 26 of R.A. No. 6657, as amended;

14. Willful and deliberate neglect or abandonment of the awarded land as defined by Section 3 (n), except in case of a waiver of said awarded land; or

15. Acts and circumstances analogous to the foregoing.

SECTION 5. Indefeasibility, a Bar to Cancellation Proceedings. — EPs, CLOAs, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Register of Deeds (ROD). Accordingly, the filing of any action for the cancellation of EPs, CLOAs, and titles after the lapse of the said one (1) year period, except for cases involving Sections 4.3 to 4.15 of these Rules, is a ground for the dismissal of the case. The said one (1) year period, however, shall be interrupted upon the filing of any: TacESD

1. ALI case, with a prayer for the cancellation of the title, involving only the grounds mentioned in Sections 4.1 to 4.2, with the Regional Director or the DAR Secretary;

2. other case with any court, office, or tribunal other than the Regional Director or the DAR Secretary, where the latter two has no jurisdiction, involving the grounds mentioned in Sections 4.1 to 4.2, or other cases of cancellation filed by ARBs in these tribunals.

This period shall likewise be deemed interrupted with respect to all pending ALI cases involving the grounds mentioned in Sections 4.1 to 4.2 at the time these Rules take into effect.

Nothing in this provision may be used to unduly delay the ripening of the indefeasibility of a title.

SECTION 6. ALICases Covering the Grounds Mentioned in Section 4. — All ALI cases pending with the Office of the Regional Director of the DAR as of the date of effectivity of A.O. No. 6, Series of 2011, involving any of the grounds mentioned in Section 4 of Article II, insofar as there are already registered EPs or CLOAs covering the subject landholding, shall be dismissed with instructions to file a verified Petition for Cancellation in accordance with this A.O.

ARTICLE III

Procedure

SECTION 7. Initiation of a Cancellation Case. — A cancellation case shall be initiated by the filing of a verified Petition for Cancellation and the payment of the filing fee, if necessary.

The verified Petition shall be filed with the Office of the PARAD who has jurisdiction over the place where the land covered by the EPs, CLOAs, or other titles sought to be cancelled is located.

The Disclosure Statement stated in Section 8 of this A.O. must be attached to the verified Petition.

After filing the Petition, the petitioner shall cause the production of a billboard, preferably made of any visible, waterproof, environmentally-friendly, and sturdy material, measuring 60.96 by 91.44 centimeters (2 x 3 feet), containing the following:

"To all concerned,

[Original/Transfer] Certificate of Title No. CLOA-_________ registered in the name of ______________________________ will be the subject of a cancellation proceeding with the Department of Agrarian Reform.

The above-mentioned farmer-beneficiary and all other respondents are required to submit their verified comments with the Provincial Agrarian Reform Adjudicator located at ____________________.

Petitioner"

and install the same at a conspicuous location along the premises of the landholding within three (3) days from his filing of his verified petition. He shall thereafter take at least three (3) photographs of the same notice and submit them to the PARAD no later than five (5) days from the filing of his verified petition. The petitioner may seek the assistance of the DAR in case there is probable cause to believe that the installation of the billboard will be confronted with violence.

The documentary and evidentiary requirements mandated by the appropriate administrative orders governing the ALI component of the cancellation case must also be attached to the verified Petition. It is the responsibility of the party initiating the cancellation case to ensure that the evidence to satisfy the grounds stated in Section 4 of this Administrative Order are submitted. The initiating party and the respondents are hereby warned that the grounds and the evidence necessary are provided for in administrative orders other than this Administrative Order. In the event any of these requirements are lacking, the PARAD shall issue an Interlocutory Order requiring the petitioner to submit them. The failure of the PARAD to issue such Interlocutory Order, or the failure of the petitioner to receive the same, shall not prevent the dismissal of the cancellation case on the ground that the petitioner failed to prove his/her/its cause of action. HCSEcI 

Finally, in case the EP/CLOA is being sought to be cancelled based on allegations that the landholding involves the retention area of the landowner or is excluded/exempted from CARP coverage, or that there is a defect or irregularity in the Notice of Coverage, the petitioner must submit a certification from the LBP that he has yet to withdraw any of the deposited just compensation. Failure to submit the said certification is a ground for the dismissal of the petition.

At least five (5) copies of the petition must be prepared and filed with the PARAD. If there is more than one (1) respondent, more copies should be prepared and filed by the petitioner in order to provide all of them with a copy.

In case of joint petitions without common interest, the PARAD shall issue an interlocutory order directing the petitioner/s to file separate petitions for cancellation and pay the corresponding filing fees. If the petitioner/s fail/s to comply within the period given in the interlocutory order, the PARAD shall immediately transmit the complete records of the case to the OSEC, through the BALA, for proper disposition.

SECTION 8. Disclosure Statement. — The petitioner shall disclose and certify under oath, in the petition or its integral annex, that:

(a) He is a party-in-interest or properly authorized by a party-in-interest;

(b) He has not commenced and/or is aware of any other action or proceeding involving the same land, or a portion thereof, or issue in any court, tribunal, or quasi-judicial agency; and to the best of his knowledge, no such action or proceeding is pending in any court, tribunal, or quasi-judicial agency;

(c) If there is any action or proceeding which is either pending or may have been terminated, he shall state the status thereof; and

(d) If he thereafter learns that a similar action or proceeding has been filed or is pending before any court, tribunal, or quasi-judicial agency, he undertakes to report that fact within five (5) days therefrom to the DAR Office where the case for cancellation is pending.

The failure to file the required disclosure statement, and/or the commission of acts constituting forum shopping, shall be a ground for dismissal of the cancellation case without prejudice.

SECTION 9. Who May File a Petition for Cancellation. — The verified petition for cancellation may be filed by any party in interest with respect to the title of the land, such as, but not limited to, the following:

(a) The person granted or applying for retention;

(b) The person whose land was declared exempted or excluded from the coverage of R.A. No. 6657, as amended, or of P.D. No. 27, or who is applying for such exemption or exclusion thereunder;

(c) The person whose landholding was covered under R.A. No. 6657 or P.D. No. 27 despite the existence of a valid final and executory Conversion Order; HEISca

(d) Qualified farmer-beneficiaries who have been determined as legally entitled to the generated and issued CLOA, or persons applying for inclusion as a farmer-beneficiary;

(e) Re-allocatees of the awarded land, or persons applying for reallocation;

(f) Actual tillers or occupants of the subject land who could have otherwise qualified as ARB pursuant to applicable laws and rules, and who have been on the land prior to or at the time of coverage; or

(g) Provincial Agrarian Reform Program Officers (PARPOs) or the Regional Directors (RDs) with respect to those cases involving any of the grounds under Sections 4.3 to 4.15 or pursuant to a lawful Order.

If any of the aforementioned persons file the petition for cancellation through a representative, said representative must be able to present a duly executed Special Power of Attorney or, in case of juridical persons, a Board Resolution, specifically authorizing him or her to file the cancellation case. If necessary, said authority must likewise state that the representative is authorized to enter into an amicable settlement, and to enter into stipulations or admissions of facts and of documents.

SECTION 10. Filing Fee. — A filing fee of Three Thousand Pesos (Php3,000.00) shall be paid for every petition, regardless of the number of titles involved therein, by the petitioner to the nearest DAR Provincial Office Cashier within the same region where the subject landholding is located, except if the petitioner is the government or any of its officials or employees in the exercise of its or their official function or in case the petitioner is an indigent litigant, in which case the payment of the filing fee shall be waived.

In case of joint petitions without common interest, the PARAD shall issue an interlocutory order directing the petitioner/s to file separate petitions for cancellation and pay the corresponding filing fees.

SECTION 11. Cancellation with Final Judgment in an ALI Case. — In the event that there is already a prior and final determination of an ALI case by the court, office, or tribunal having jurisdiction involving any of the grounds mentioned in Section 4 of Article II, the petitioner may file an action for cancellation in accordance with these Rules by filing a petition together with the following duly marked documents:

1. Original or certified true copy of the final and executory Order or Resolution of the DAR Regional Director, DAR Secretary, or the court;

2. Certified true copy of the Certificate of Finality, Order of Finality, or Entry of Judgment;

3. Certified true copy of the EPs, CLOAs, or any other titles sought to be cancelled;

4. Official Receipt issued for the payment of the corresponding filing fee, unless the petitioner is an indigent litigant; and CTSAaH

5. Any other relevant documents that may support the petition for cancellation.

In the event that any of these requirements are lacking, the PARAD shall issue an Interlocutory Order requiring the petitioner to submit them; in the event of non-compliance therewith, the PARAD shall issue another Interlocutory Order to ensure the submission of complete documentary requirements.

In case the petitioner still fails to comply therewith within the prescribed period despite receipt of the second Interlocutory Order, the PARAD shall immediately transmit the records of the case to the OSEC, through BALA, provided that the date of transmittal shall not exceed a period of six (6) months from the date of filing of the petition for cancellation. The transmittal letter shall state such non-compliance of the petitioner.

SECTION 12. Assignment of Case Control Number. — Within the same day of receipt of the verified petition and, if applicable, proof of payment of the filing fee, the clerk of the PARAD shall assign a Case Control Number for monitoring purposes.

The assignment of case control numbers shall be based on the number of titles involved in the petition, in accordance with Article I, Section 3 (d) hereof.

SECTION 13. Issuance of Notice. — The PARAD shall retain two (2) copies of the petition, with the rest to be served upon the respondents, ROD, and PARPO concerned. The EP or CLOA holder must be deemed a respondent.

The PARAD shall, within five (5) days from receipt of the verified petitions and full payment of the filing fee, issue a Notice to Comment, attaching thereto a copy of the petition and supporting documents, if any, pre-marked as exhibits "A", "B", "C", and so forth.

The aforesaid Notice shall direct the respondent(s) and concerned ROD to file a verified Comment to the petition, attaching thereto duly marked documentary evidence marked as exhibits "1", "2", "3" and so forth within a non-extendible period of fifteen (15) days from receipt thereof, furnishing a copy to the petitioner. The same Notice shall inform the parry that the ALI component of the cancellation case may be governed by other A.O.s and he/she is therefore advised to review the said A.O.s. The recommended form of said Notice is attached hereto as Form 2.

SECTION 14. Service of Notice. — The PARAD shall immediately instruct his Sheriff to serve the Notice to Comment, together with the petition and marked exhibits, to the respondent(s) and concerned ROD. The PARAD may request the PARPO to designate any personnel from the DAR Provincial Agrarian Reform Office to assist the Sheriff in the service of notices. In case one or all of the respondents reside in other provinces, the PARAD may coordinate with the PARPO of the said place to assist the Sheriff in serving the Notices to Comment.

Service of the Notice to Comment shall be made to the respondents through the following persons:

(1) Service upon the respondent who is a natural person — The Notice shall be served to the respondent;

(2) Service upon co-owners of collective CLOAs — In case the CLOA-holder of the landholding are multiple persons as co-owners, the Notice shall be served upon each and every registered co-owner, unless one is specifically authorized, in a written public document, to receive for the co-owners;

(3) Service upon minors — When the respondent is a minor, service shall be made upon him/her personally and to his/her father and/or mother, whoever has lawful custody of the said minor. If the respondent has no parents, service shall be made upon him/her personally and to his/her legal guardian if he/she has one, or, if none, upon his/her relative having custody on his/her person; AcIaST

(4) Service upon incompetents — When the respondent is insane or otherwise incompetent, service shall be made to his/her spouse, or his/her parents, whoever has lawful custody of the said incompetent. If the respondent has no parents, service shall be made upon his/her legal guardian if he/she has one, or, if none, upon his/her relative having custody on his/her person;

(5) Service upon entity without juridical personality — When the respondents who are persons associated through an entity without juridical personality are issued a Notice under the name by which they are generally or commonly known, service may be effected upon all the respondents by serving upon any one of them, or upon the person in charge of the office or place of business maintained in such name, provided that service shall not individually bind any person whose connection with the entity has, upon due notice, been severed before the proceeding was brought; 

(6) Service upon domestic private juridical entity — When the respondent is a corporation, partnership, or association organized under the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel; and

(7) Service upon the Estate of a deceased respondent — When the respondent is an Estate of a deceased person, the Notice shall be served to:

1. the Executor or Administrator of the Estate if the settlement of the same is currently pending with the court; or

2. all known heirs if the Estate is not pending with the court or if there is no executor or administrator, which Notice shall also be published.

The Notice to Comment shall be served personally. If the person authorized to receive cannot be found at the date of service, it shall be, on the same day, served personally to any person of suitable age and discretion who is residing at the residence of the Respondent, or with some competent person in charge at the place of business of the Respondent. In the case of juridical entities, the substituted service of said Notice shall be made to a competent person in charge of the office of those mentioned in Section 14 (6) hereof.

If the respondent cannot be personally served with the Notice to Comment, service may also be effected by publication, the Notice following the form stated in Annex "A" of this A.O. In case the Sheriff effects the service by publication, he must submit a report to the PARAD explaining in detail the efforts he has made to personally serve the said Notice. The published Notice shall include instructions on how the Respondent may get a copy of the verified Petition from the PARAD. The expenses for the publication of the Notice to Comment shall be borne by the petitioner, unless the latter is a pauper or indigent litigant.

The Sheriff or any personnel of the DAR that may be authorized by the Sheriff shall post on the bulletin board of the Barangay Hall where the land covered by the EP, CLOA, or other title of the land sought to be cancelled is located, a 72.39 by 57.15 centimeters (28.5 x 22.5 inches) notice stating the following both in English and in the local dialect: aCSTDc

"To all concerned,

[Original/Transfer] Certificate of Title No. CLOA-_________________ registered in the name of _________________ is currently the subject of a cancellation proceeding with the Department of Agrarian Reform with case number ______________.

The above-mentioned farmer-beneficiary and all other respondents __________________ are required to submit their verified comments on or before __________________ with the Provincial Agrarian Reform Adjudicator located at __________________________.

Removal of this notice is punishable by law.

_________________

The Sheriff shall request from the Punong Barangay, Barangay Secretary, or Barangay Treasurer, a certificate of posting, containing, among others, the date when the notice was posted at the bulletin board. The Sheriff shall collect the said certification and take photographs of the posted notice and submit them to the PARAD.

The Sheriff shall submit a report to the PARAD on the mode of service used for said Notice, and the fact of transmittal of the notice to the Barangay Secretary concerned.

SECTION 15. Time to Comment. — The respondent has fifteen (15) days from receipt of the aforesaid Notice to file or submit his or her verified Comment to the PARAD. For those respondents who did not receive the Notice to Comment personally, the date of publication or the posting at the bulletin board, whichever is later, shall be deemed the date of receipt of the same. The failure to submit the Comment shall be deemed a general denial of the material allegations of the petition.

SECTION 16. Information About the Parties or their Counsel. — The counsel of the Parties, or, if none, the Parties themselves, must indicate in their verified petition or their comment, whichever is applicable, their name, address, electronic mail address, telephone numbers, and fax numbers.

SECTION 17. Case Folder Build-Up. — The clerk of the PARAD is tasked with the preparation of a complete Case Folder, which must contain the following:

(a) Official Receipt as proof of payment, except those exempted from payment of filing fees under Section 1.0 of these Rules;

(b) Verified Petition with Disclosure Statement;

(c) Verified Comment;

(d) Valid authorization by a person allowed by Section 9 of these Rules to file a cancellation case, in case the person filing is acting on behalf of the said person;

(e) Notices, and proof of service and receipt of said notices;

(f) Owner's duplicate copy or certified photocopy of EPs, CLOAs, or other titles;

(g) Memorandum; DEcTCa

(h) Marked documentary exhibits;

(i) Either:

a. Documentary requirements of A.O.s governing the ALI component of the case; or

b. If the case is filed in accordance with Section 11 hereof:

i. Original or certified true or photocopy of final and executory orders and resolutions; and

ii. Original or certified true or photocopy of Certificate of Finality; and

(j) Other pertinent documents.

SECTION 18. Preliminary Hearing. — The PARAD shall set the date for the Preliminary Hearing, which must be set not later than twenty (20) days from receipt of the Comments (or from the last day to submit the Comments). The PARAD shall issue Notices of Preliminary Hearing stating the date thereof and the address of the PARAD's office not later than three (3) days from the setting of the schedule which must not be later than five (5) days from receipt of the Comments. Notices of Preliminary Hearing shall be sent personally to all the parties.

The following shall be conducted during the Preliminary Hearing:

(1) Simplification and joinder of issues;

(2) Advise by the PARAD to the parties of all the documents and other evidence required by this A.O., other pertinent A.O.s, and those otherwise necessary for the proper resolution of the issues that have yet to be submitted, and requiring them to submit these; and

(3) Notification by the PARAD to all the parties of the date of the On-Site Inspection (if necessary) as well as the schedule of the Clarificatory Hearing.

The failure of the PARAD to state which documents are lacking shall not be an excuse for the said party, who has the primary responsibility to submit all necessary documents, to submit all documents necessary to support his or her claim or defense.

SECTION 19. On-Site Inspection. — Except in cases where the petition for cancellation was filed on the basis of a final and executory Order in an ALI case, the PARAD may conduct an on-site inspection (OSI), but only if absolutely necessary. The PARAD shall use video recordings during the OSI, together with an affidavit of authentication from the person recording the video, both of which shall form part of the OSI Report. If an OSI is conducted, said PARAD shall issue a Report thereon and it shall form part of the records of the case.

The OSI shall be set not later than twenty (20) days from the Preliminary Hearing, and the parties shall be notified of such date during the Preliminary Hearing. Notices of the schedule of the OSI shall also be sent by the PARAD to the parties concerned, which should be received by the latter prior to the actual date thereof.

In conducting the OSI, the PARAD may request for assistance from the Office of the RD or PARPO, as the case may be, which assistance shall not be unreasonably withheld.

SECTION 20. Clarificatory Hearing and Submission of Position Paper. — After a thorough review of all evidence presented, and after the conduct of the OSI, the PARAD shall schedule a Clarificatory Hearing to be attended by the parties and/or their counsel or representative. TcDHSI

During the Clarificatory Hearing, the PARAD shall propound questions on matters and issues arising from the OSI and the evidence submitted. The proceedings shall be properly recorded by a stenographer. The transcript of stenographic notes (TSN) during the hearing shall form part of the records of the case. Any person answering questions during the Clarificatory Hearing shall be under oath.

The Clarificatory Hearing shall be set not later than twenty (20) days from the conduct of the OSI or, if no OSI conducted, from the date of the Preliminary Hearing. The parties shall be notified of such date during the Preliminary Hearing. Notices of the schedule of the Clarificatory Hearing shall also be sent by the PARAD to all the parties, which should be received by them prior to the actual date thereof.

Within five (5) days from the termination of the Clarificatory Hearing, the PARAD shall issue an Order directing the petitioner, the private respondent/s, and PARPO to file their respective Position Papers within ten (10) days from receipt thereof.

SECTION 21. Report of the PARAD. — The PARAD shall issue a report on the ALI component of the cancellation case no later than thirty (30) days from the conduct of the Clarificatory Hearing and upon the lapse of the period to file Position Papers.

Findings of facts in the recommendation must be based on the evidence presented, whether testimonial, documentary, or object. Such basis must be mentioned in the report, stating therein the page number in the case records where such evidence may be found. The report shall form part of the case records.

SECTION 22. Absence of a PARAD. — In the event there is a vacancy in the Office of the PARAD concerned, and no radiating Adjudicator has yet been designated, then the functions of the PARAD in Sections 3 (d), 7, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, 21, and 23 hereof shall be assumed by the Regional Agrarian Reform Adjudicator (RARAD) of the place where the land covered by the EPs, CLOAs, or other titles sought to be cancelled is located.

SECTION 23. Transmittal of Case Folder to the BALA. — Upon completion of the Case Folder, the clerk of the PARAD shall cause the arranging of each document therein in chronological order according to date of receipt, and affix his or her initial on each and every page. When for special reasons a particular document in the records requires that it be free from any form of marking, the affixing of initials shall be made only upon photocopies thereof, with the originals placed in a separate envelope while said photocopies shall form part of the case folder. 

The PARAD shall prepare a Transmittal Letter, copy furnished all the parties, accompanying the Case Folder, particularly stating therein the parties involved, the number and description of the contents of the Case Folder, and the number of pages contained therein. Thereafter, the PARAD shall, within ten (10) days from the completion of the Case Folder, forward the same to BALA.

The PARAD shall keep for his file one Case Folder containing photocopies of the contents of the original Case Folder.

SECTION 24. Pagination and Indexing of Case Folders. — Upon receipt of the Case Folder, the BALA shall substantially adopt the Case Control Number previously assigned therefor. For this purpose, the BALA shall maintain a Docket Book containing the docket numbers assigned for each case, the details of the petition, and the date the Case Folder was received.

The BALA shall cause the arranging of each document therein in chronological order according to date of receipt, and inscribe a page number on and initial each and every page. When for special reasons a particular document in the records requires that it be free from any form of marking, the pagination and affixing of initials shall be made only upon photocopies thereof, with the originals placed in a separate envelope while said photocopies shall form part of the case folder. It shall also prepare a table of contents, which shall be placed immediately after the Endorsement by the BALA of the Case Folder.

SECTION 25. Review, Findings, and Recommendation by the BALA. — The BALA shall conduct a review, evaluation, and thorough assessment of the entire case records. SCaDAE

Thereafter, the BALA shall prepare its findings and recommendation and transmit the same to the Office of the Assistant Secretary for Legal Affairs (ASEC-LAO).

SECTION 26. Review, Findings, and Recommendation by the ASEC-LAO. — The ASEC-LAO shall conduct its own review, evaluation, and thorough assessment of the entire case records. Thereafter, the ASEC-LAO shall prepare its findings and recommendation and submit the same to the USEC-LAO.

SECTION 27. Review, Findings, and Recommendation by Office of the Undersecretary for Legal Affairs (USEC-LAO). — The USEC-LAO shall conduct its own review, evaluation, and thorough assessment of the entire case records. Thereafter, the USEC-LAO shall prepare its findings and recommendations.

SECTION 28. Conduct of Clarificatory Hearing. — The DAR Undersecretary for Legal Affairs, when he deems it necessary or upon the recommendation of the Assistant Secretary for Legal Affairs, may conduct a hearing for clarification, issue interlocutory orders, and require submission of additional evidence. He may authorize the Legal Division Chief of the Provincial or Regional Office or the PARAD or RARAD concerned, to conduct such hearings, if the Undersecretary deems it necessary. For this purpose, the official record of the proceedings conducted shall be kept and form part of the case folder.

SECTION 29. Transmittal of Case Folder with Findings and Recommendation to the DAR Secretary. — The USEC-LAO shall, within five (5) days from the completion of its aforesaid recommendation, transmit the same, together with the Case Folder, to the DAR Secretary. The date of such transmittal shall be considered the date when the case is deemed submitted for resolution. Such date shall be indicated in the Department's case monitoring system.

SECTION 30. Decision. — The DAR Secretary shall render a Decision by issuing an Order and furnishing a copy thereof by registered mail and, if available, electronic mail, to the parties' counsel or representatives, as well as the parties themselves and the DAR officials who took part in the proceedings. The soft copy of the Order transmitted to the parties by electronic mail shall merely serve as advance notice thereof, as the actual date of receipt of the hard copy sent by registered mail shall be the basis for the determination of the period to file either a motion for reconsideration or an appeal.

In case a copy of the Order sent by registered mail is unclaimed and is returned to the DAR Secretary, the caption and the dispositive portion thereof shall be published in a newspaper of general circulation. The date of the publication shall be deemed as the time the Order is received by the party who failed to receive it by registered mail.

When the cancellation of a CLOA is based on Section 4 (5) (b) hereof, and there is no finding that the COD should not be issued, the DAR Secretary shall not issue the Order until a COD has been issued. A certified true copy of the COD must be attached to the Order of the DAR Secretary, especially the copies of the Order that shall be furnished to the parties.

ARTICLE IV

Disqualification of the Secretary from Deciding the Case

SECTION 31. Disqualification of the Secretary to Decide the Cancellation Case. — In cancellation cases other than those falling under Section 11 of this A.O., where in the Secretary's sound discretion, there are just and valid grounds to believe he might be induced to act in favor of one party or with bias or prejudice against a party arising out of circumstances reasonably capable of inciting such a state of mind, he must recuse from deciding the ALI component of the case by putting such fact and reason into writing and incorporating it in the case folder.

Thereafter, the Secretary shall inform the Office of the President (OP) of the reasons of his recusal and shall request for the OP to designate one of DAR's Undersecretaries to resolve the case. This is pursuant to Department of Justice (DOJ) Opinion dated 15 May 2013 (Office Document Number LML-L-15E13-609). STHAaD

ARTICLE V

Prohibited Motions

SECTION 32. Prohibited Motions. — The following motions shall not be allowed:

(a) Motion to declare respondent in default or for default judgment;

(b) All motions filed before the Comment;

(c) Motion for extension of time to file an appeal, a motion for reconsideration, or a memorandum; and

(d) Second motion for reconsideration.

In case any party files any of the prohibited motions, the PARAD or RARAD, BALA, Assistant Secretary for Legal Affairs, Undersecretary for Legal Affairs, or the Secretary, as the case may be depending on who or which office has the Case Folder, shall accept the written motion and include it in the Case Folder, but shall not act upon the matter.

ARTICLE VI

Grounds for Dismissal

SECTION 33. Dismissal of Petition. — The petition for cancellation may be denied by the DAR Secretary on the following grounds:

1. If, in an action for cancellation falling under Section 11 of Article III, the petitioner failed to submit any of the following documents:

(a) Original, certified true, or photocopies of the final and executory Order and Resolution of the DAR Regional Director, DAR Secretary, or the courts;

(b) Certificate of Finality;

(c) Original owner's duplicate or certified true copy of the EPs, CLOAs, or any other titles sought to be cancelled;

(d) Official Receipt issued for the payment of the corresponding filing fee, unless the petitioner is exempt under Section 10 of Article III of these Rules; and

(e) Any other relevant documents that may support the petition for cancellation;

2. Failure to pay filing fee;

3. Failure to comply with Section 8 of Article III of these Rules on Disclosure Statement;

4. Failure to submit the documentary requirements mandated by other A.O.s governing the ALI component of the case;

5. Failure to comply with the Order to implead the PARO, ROD, and/or other indispensable parties;

6. When the petition for cancellation was filed after the one (1) year period as provided under Article III, Section 5 of these Rules, save those instances covered by Article II, Sections 4.3 to 4.15 hereof; or

7. Failure to prove a cause of action or for lack of merit.

ARTICLE VII

Direct Order of Cancellation

SECTION 34. Direct Cancellation. — The procedures in Articles III, IV, and V notwithstanding, the Secretary may, in the exercise of his original or appellate jurisdiction, order the cancellation of an EP, CLOA, or any other title issued under any agrarian reform program, provided that all of the following conditions are present:

1. The decision of the Secretary in the exercise of his original or appellate jurisdiction may result in the cancellation of the EP, CLOA, or other title issued under any agrarian reform program; and ScAHTI

2. The holder of the EP, CLOA, or other title is given the right to be heard through the procedures set by Section 35 of this A.O.

SECTION 35. Order to Comment. — To ensure that due process is afforded to the holder of the EP, CLOA, or other title issued under the agrarian reform program that may be cancelled, if the Secretary, pending resolution of the pending case determines that:

1. A possible decision of the Secretary in the pending case may result in the cancellation of the EP, CLOA, or other title issued under any agrarian reform program; and

2. the holder of the EP, CLOA, or other title is a party to the appealed ALI case, he shall issue an Interlocutory Order directing the PARAD to:

a. inform the holder of the EP, CLOA, or other title, through a Notice that shall be served in the same manner as the service of a Notice to Comment provided in Section 14 of this A.O., that the pending ALI case is being considered by the OSEC as a cancellation case, and direct him/her to submit to the OSEC, with a copy furnished to the opposing party, within thirty (30) days from receipt thereof, a Comment on the issue of the ALI case and the possibility of the cancellation of the/his/her awarded title as a consequence of an adverse decision in the case; and

b. post Notices in the landholding and on the bulletin board of the Barangay Hall that the subject landholding is a subject of a cancellation case.

The opposing party may file a Reply to the Comment within fifteen (15) days from his receipt thereof without the need of an Order from the OSEC.

ARTICLE VIII

 

Motion for Reconsideration

SECTION 36. Motion for Reconsideration. — A party may file only one (1) Motion for Reconsideration of the Order of the DAR Secretary to cancel the EP, CLOA, or other title issued under any agrarian reform program, within a period of fifteen (15) days from receipt thereof, furnishing a copy of the motion to all other parties' counsel or representative. The filing of the Motion for Reconsideration shall interrupt the running of the reglementary period within which to file a notice of appeal.

SECTION 37. Comment on Motion for Reconsideration. — The adverse party may file a Comment on the Motion for Reconsideration within a non-extendible period of ten (10) days from receipt thereof. No Order from the DAR Secretary is necessary for a party to file a Comment.

SECTION 38. Resolution of the Motion for Reconsideration. — The DAR Secretary shall resolve the Motion for Reconsideration by issuing an Order/Resolution in due course, furnishing a copy thereof by registered mail and, if available, electronic mail, to the parties' counsel or representative as well as the parties themselves and the DAR officials who took part in the proceedings. The soft copy of the Order transmitted to the parties by electronic mail shall merely serve as advance notice thereof, as the actual date of receipt of the hard copy sent by registered mail shall be the basis for the determination of the period to file an appeal.

In case a copy of the Order sent by registered mail is unclaimed and is returned to the DAR Secretary, the caption and the dispositive portion thereof shall be published in a newspaper of general circulation. The date of the publication shall be deemed as the time the Order is received by the party who failed to receive it by registered mail.

ARTICLE IX

Appeal

SECTION 39. Appeal of the Decision of the DAR Secretary. — The Order or Resolution of the DAR Secretary may be appealed to the Office of the President, in accordance with the rules and procedures set forth by the latter.

ARTICLE X

Finality

SECTION 40. Finality. — The Order or Resolution of the DAR Secretary shall become final and executory upon the expiration of the period to appeal therefrom if no appeal has been duly perfected. ADTCaI

SECTION 41. Certificate of Finality. — The BALA shall issue a Certificate of Finality upon any party's formal request and presentation of a certification from the Office of the President and the Court of Appeals that no appeal has been filed before the period to appeal expired.

ARTICLE XI

Execution

SECTION 42. Execution. — If the Order or Resolution of the DAR Secretary becomes final and executory in accordance with Article X hereof, the BALA, on motion or motu proprio, shall issue a Writ of Implementation directing the PARPO to implement the final and executory decision of the Secretary.

If an appeal has been duly perfected and finally resolved, the execution may forthwith be applied by filing a Motion for the Issuance of a Writ of Implementation with the BALA within five (5) years from the date of entry of the final decision.

After the lapse of the five (5) year reglementary period, a party may file an action for the revival of the judgment of the Cancellation case with the Office of the Secretary at any time prior to it being barred by the statute of limitations.

The Writ of Implementation shall direct the concerned Registry of Deeds to cancel the EP, CLOA, or other title issued pursuant to any agrarian reform program. The PARPO concerned shall effect the necessary actions in order to implement the DAR Secretary's Order.

SECTION 43. Writ of Possession and Writ of Demolition. — After the issuance of the Writ of Implementation, the BALA, on motion, after hearing and after giving the respondent reasonable time to vacate, may issue a Writ of Possession and/or a Writ of Demolition directing the PARPO, with the assistance with the Sheriff of the concerned PARAD, to demolition and improvements on the subject landholding, if necessary, and to install the rightful title-holder of the subject landholding.

SECTION 44. Enforcement of Partial Cancellation. — Whenever the Order of cancellation pertains only to a portion of an awarded land, the Writ of Implementation shall direct the:

1. PARPO concerned to issue a new EP or CLOA covering the area not cancelled or in the name of the ARBs whose right to the said award are not terminated by the cancellation Order; and

2. Register of Deeds concerned to cancel the entire affected EP or CLOA and to register that issued by the PARO.

ARTICLE XII

Provisional Relief

SECTION 45. Temporary Restraining Order. — In cases where any party may immediately suffer grave or irreparable damage, or where the performance or continuance of certain acts will render the case moot and academic, or where there is a need to maintain peace and order and prevent injury or loss of life or property, the said party may request for the issuance of a Temporary Restraining Order (TRO), either as a prayer in the Petition for Cancellation or through motion, before the PARAD or RARAD.

Upon receipt of the Petition for Cancellation with a prayer for the issuance of a TRO, or of the motion for issuance of TRO, the PARAD or RARAD shall transmit a copy of the said petition or motion with supporting documents (i.e., Affidavit of Merit and other supporting documents) to the OSEC. In case it is established on the basis of the allegations in the petition or motion that any of the grounds for the issuance of a TRO exist, the Secretary shall issue the TRO, and the same shall be effective for three (3) days from issuance thereof. The OSEC shall furnish the PARAD or RARAD a copy of the Order granting or denying the request for a TRO.

The PARAD or RARAD, whenever the Petition for Cancellation filed before his or her office contains a prayer for such TRO or a CDO pursuant to Section 44 below, shall nevertheless continue and proceed with the case build up procedures prescribed by these rules. CHTcSE

In the event there is an additional prayer for the issuance of a CDO, the PARAD or RARAD shall forward the copy of the petition or motion with supporting documents and his recommendation to the OSEC or USEC-LAO, through BALA, for proper disposition pursuant to Section 44 of this A.O.

SECTION 46. Cease and Desist Order. — At any time prior to either the finality of the Order of the Secretary or the perfection of an appeal, in cases where any party may suffer grave or irreparable damage, or where the performance or continuance of certain acts will render the case moot and academic, or where there is a need to maintain peace and order and prevent injury or loss of life or property, the Secretary or the Undersecretary for Legal Affairs may, at the instance of any party, issue a Cease and Desist Order (CDO) to prevent grave and irreparable damage while awaiting resolution of the case.

SECTION 47. Failure to Comply, Ground for Contempt. — The failure of any person to comply with the TRO or CDO is a ground for Indirect Contempt.

ARTICLE XIII

Powers of the Secretary

SECTION 48. Powers of the Secretary. — The DAR Secretary, the Undersecretary for Legal Affairs, the Assistant Secretary, the BALA Director, and the PARADs/RARADs shall have the power to summon witnesses, administer oaths, take testimonies, require submission of reports, compel the production of books and documents and answers to interrogatories, issue subpoena duces tecum and ad testificandum, and issue other writs and processes necessary for the resolution of the petition.

These may be enforced under pain of indirect contempt which may be filed at the proper court.

ARTICLE XIV

Final Provisions

SECTION 49. Case Records are Public Documents. — Subject to the provisions of pertinent laws and guidelines on confidentiality and transparency, including Memorandum Circular No. 7, Series of 2011, the records of a cancellation case are public documents. However, confidential information as provided for by the Department's rules and related laws shall not be disclosed.

SECTION 50. Suspension of Rules. — The DAR Secretary may suspend the application of these Rules in order to serve and protect the interest of justice.

SECTION 51. Transitory Provisions. — The provisions of this A.O. shall be applicable to all cancellation cases filed on or after its effectivity.

The above paragraph notwithstanding, the PARAD is hereby directed to proceed with the investigation of the ALI component pursuant to this A.O. if the case folder is pending with them at the time of the effectivity of these rules.

SECTION 52. Repealing Clause. — These Rules repeal A.O. No. 6, Series of 2011, and all orders, circulars, rules and regulations, and issuances or portions thereof that are inconsistent herewith.

SECTION 53. Separability Clause. — Any judicial pronouncement declaring as unconstitutional any provision of these Rules shall have no effect on the validity of the other provisions not affected thereby. AaHTIE

SECTION 54. Effectivity Clause. — These Rules shall take effect ten (10) days after its publication in two (2) newspapers of general circulation.

Diliman, Quezon City, September 15, 2014.

 

(SGD.) VIRGILIO R. DE LOS REYESSecretaryDepartment of Agrarian Reform

Published in The Manila Standard Today and The Manila Times on September 23, 2014.