G.R. No.

127876 December 17, 1999

ROXAS & CO., INC.
vs.
THE HONORABLE COURT OF APPEALS,
PUNO, J.:
FACTS:
(1)Roxas & Co. is a domestic corporation and is the registered owner of
three haciendas, namely, Haciendas Palico, Banilad and Caylaway, all
located in the Municipality of Nasugbu, Batangas. Hacienda Palico
is 1,024 hectares in Hacienda Banilad is 1,050 hectares in area.
Hacienda Caylaway is 867.4571 hectares in area.
(2)Before the law's effectivity, on May 6, 1988, [Roxas & Co.] filed with
respondent DAR a voluntary offer to sell [VOS] Hacienda Caylaway
pursuant to the provisions of E.O. No. 229. Haciendas Palico and
Banilad were later placed under compulsory acquisition by . . . DAR in
accordance with the CARL.
(3)Nevertheless, on August 6, 1992, [Roxas & Co.], through its President,
Eduardo J. Roxas, sent a letter to the Secretary of . . . DAR withdrawing
its VOS of Hacienda Caylaway. The Sangguniang Bayan of Nasugbu,
Batangas allegedly authorized the reclassification of Hacienda
Caylaway from agricultural to non-agricultural. As a result, petitioner
informed respondent DAR that it was applying for conversion of
Hacienda Caylaway from agricultural to other uses.
ISSUE:
Whether the Haciendas Palico, Banilad and Caylaway, all situated in
Nasugbu, Batangas, are non-agricultural and outside the scope of Republic
Act No. 665
RULING:
Yes. The Supreme Court held that The DAR itself has issued administrative
circulars governing lands which are outside of CARP and may not be
subjected to land reform. Administrative Order No. 3, Series of 1996 declares
in its policy statement what landholdings are outside the coverage of CARP.
The AO is explicit in providing that such non-covered properties shall be
reconveyed to the original transferors or owners.
These non-covered lands are:

a. Land, or portions thereof, found to be no longer suitable for agriculture

and, therefore, could not be given appropriate valuation by the Land Bank of
the Philippines (LBP);
b. Those were a Conversion Order has already been issued by the DAR
allowing the use of the landholding other than for agricultural purposes in
accordance with Section 65 of R.A. No. 6657 and Administrative Order No.
12, Series of 1994;
c. Property determined to be exempted from CARP coverage pursuant to
Department of Justice Opinion Nos. 44 and 181; or
d. Where a Presidential Proclamation has been issued declaring the subject
property for certain uses other than agricultural.
In the present case, Proclamation 1520 dated November 20, 1975 is part of
the law of the land. It declares the area in and around Nasugbu, Batangas, as
a Tourist Zone. It has not been repealed, and has in fact been used by DAR to
justify conversion of other contiguous and nearby properties of other parties.
Furthermore, the Sangguniang Bayan of Nasugbu, affirmed by the
Sangguniang Panlalawigan of Batangas, expressly defines the property as
tourist, not agricultural. The power to classify its territory is given by law to
the local governments.