DISPOSITIVE:

WHEREFORE, the petition is GRANTED. The assailed Decision dated March 27, 2014 and Resolution dated July 11, 2014 of the Court of Appeals in CA-G.R. SP No. 122846 are hereby REVERSED and SET ASIDE. The Resolution of the Department of Agrarian Reform Adjudication Board dated December 16, 2011 which declared Lot No. 554-D-3 EXEMPT from the coverage of the Comprehensive Agrarian Reform Program and consequently ordered the CANCELLATION of the Certificates of Land Ownership Award issued in the name of respondents is hereby REINSTATED.

SO ORDERED.

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

IN THIS CASE RESPONDENT AND CA RELIED ON AN ORDER OF THE DAR SECRETARY WHICH PERTAINS TO OTHER LOTS. THE LOT IN QUESTION WAS ALREADY DECLARED AS EXEMPTED FROM DAR COVERAGE AND IN FACT WAS ALREADY EXPROPRIATED AND IS NOW PART OF SCTEX.

To the Court’s mind, the resolution of the DAR Secretary in DARCO Order No. EX-0712-489 was precisely the reason why the DARAB reversed its earlier decision and upheld the exemption granted to SVHFI. As correctly found by the DAR Secretary, respondents could not have derived any vested right over the subject property despite the issuance of CLOAs in their favor because the coverage of the property was erroneous to begin with. SVHFI, as original owner of Lot No. 554-D-3, was never divested of its rights over the same, including the right to apply for exemption. What is more, the results of the ocular inspection revealed that majority of the portions of Lot No. 554-D[1]3 have already been developed into what is now known as the SCTEX. This, in itself, is a clear indication that the land had indeed been reclassified into non-agricultural purposes and no longer feasible for agricultural production. To hold otherwise would not only be a waste of government resources, but also expand the scope of the agrarian reform program which has been limited to lands devoted to or suitable for agriculture.

As pronounced by the CA itself, the findings of the DAR Secretary are accorded great weight and respect. Considering his technical expertise on the matter, courts cannot simply brush aside his pronouncements regarding status of a land, a subject well within his field, absent palpable and overriding error or grave abuse of discretion that would result in manifest injustice and grave misapplication of the law.

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