ROXAS AND CO., INC. v. COURT OF APPEALS, G.R. No. 127876, December 17, 1999 (Digested Case)

Re: Reclassification of lands thru an ordinance (Sec. 20, LGC 1991)

FACTS: The petitioner's claim that the three haciendas involved are not subject to agrarian reform because they have been declared for tourism, not agricultural purposes. In 1975, then President Marcos issued Proclamation No. 1520 declaring the municipality of Nasugbu, Batangas a tourist zone. Lands in Nasugbu, including the subject haciendas, were allegedly reclassified as non-agricultural 13 years before the effectivity of R. A. No. 6657 (CARL). In 1993, the Regional Director for Region IV of the DA certified that the haciendas are not feasible and sound for agricultural development. On March 20, 1992, pursuant to Proclamation No. 1520, the Sangguniang Bayan of Nasugbu, Batangas adopted Resolution No. 19 reclassifying certain areas of Nasugbu as non-agricultural. This Resolution approved Municipal Ordinance No. 19, Series of 1992, the Revised Zoning Ordinance of Nasugbu which zoning ordinance was based on a Land Use Plan for Planning Areas for New Development allegedly prepared by the University of the Philippines. Resolution No. 19 of the Sangguniang Bayan was approved by the Sangguniang Panlalawigan of Batangas on March 8, 1993. Petitioner claims that proclamation No. 1520 was also upheld by respondent DAR in 1991 when it approved conversion of 1,827 hectares in Nasugbu into a tourist area known as the Batulao Resort Complex, and 13.52 hectares in Barangay Caylaway as within the potential tourist belt. Petitioner present evidence before us that these areas are adjacent to the haciendas subject of this petition, hence, the haciendas should likewise be converted. Petitioner urges this Court to take cognizance of the conversion proceedings and rule accordingly.

ISSUE: WON the application for conversion of land from agricultural to non-agricultural is under the exclusive juridisction of DAR.

HELD: Yes. Respondent DAR's failure to observe due process in the acquisition of petitioner's landholdings does not ipso facto give this Court the power to adjudicate over petitioner's application for conversion of its haciendas from agricultural to non-agricultural. The agency charged with the mandate of approving or disapproving applications for conversion is the DAR. The DAR's mandate over applications for conversion was first laid down in Section 4 (j) and Section 5 (l) of Executive Order No. 129-A, Series of 1987 and reiterated in the CARL and Memorandum Circular No. 54, Series of 1993 of the Office of the President. Said laws vest in the DAR, exclusive authority to approve or disapprove "individual" applications for conversion of agricultural lands for residential, commercial, industrial and other land uses.

NB: LGU need not obtain DAR's approval to expropriate agricultural lands (Camarines v. CA).