THE Supreme Court (SC) has ordered the distribution of the 4,915.75-hectare Hacienda Luisita, a vast sugar land plantation in Tarlac province owned by the family of President Aquino, to its more than 6,000 farmer-beneficiaries.
In a 56-page resolution penned by Associate Justice Presbitero Velasco, Jr. on Wednesday but was officially released by the SC-Public Information Office on Thursday, the Court, voting 14-0, decided to modify its July 5, 2011 decision which gives the farm worker-beneficiaries (FWBs) the option to remain as stockholders of Hacienda Luisita Inc. (HLI), in lieu of land distribution which is mandated under the Comprehensive Agrarian Reform Program (CARP).
The SC granted the partial motions for reconsideration filed by Presidential Agrarian Reform Council (PARC) and the Department of Agrarian Reform, Alyansa ng mga Manggagawang Bukid sa Hacienda Luisita, and the Farmworkers Agrarian Reform Movement Inc. seeking to recall and set aside its decision with respect to the option granted to the farmworker-beneficiaries to remain with HLI through the stock-distribution plan (SDP).
“Upon review of the facts and circumstances, we realize that the FWBs will never have control over these agricultural lands for as long as they remain as stockholders of HLI,” the SC said.
“In line with our finding that control over agricultural lands must always be in the hands of the farmers, we reconsider our ruling that the qualified FWBs should be given an option to remain as stockholders of HLI, inasmuch as these qualified FWBs will never gain given the present proportion of shareholdings in HLI,” it further ruled.
The SC also said the DAR should verify the identities of the 6,296 original FWBs, in line with its administrative prerogative to identify and select agrarian-reform beneficiaries under Republic Act 6657 (Comprehensive Agrarian Reform Law).
Issue on compensation
IN its decision, the majority justices maintained its July 5 ruling that the just compensation for HLI’s agricultural land that will be transferred for land distribution to the FWBs should be computed based on the valuation of the land in 1989, when PARC approved its SDP.
It said when PARC approved HLI’s SDP, it was only the time that FWBs were considered to own and possess the agricultural lands in Hacienda Luisita.
It did not give credence to HLI’s contention that the taking should be reckoned from the finality of the decision of the Court, or at the very least, on January 2, 2006, the date when the notice of coverage was issued by the DAR pursuant PARC’s resolution recalling the approval of the SDP.
“To be precise, these lands became the subject of the agrarian-reform coverage through the stock-distribution scheme only upon the approval of the SDP, that is, November 21, 1989. Thus, such approval is akin to a notice of coverage ordinarily issued under compulsory acquisition,” the Court ruled.
Associate Justice Ma. Lourdes Sereno, in her 46-page separate concurring and dissenting opinion, maintained that the nullity of the stock-distribution option agreement should lead to the immediate distribution of Hacienda Luisita.
However, Sereno said she disagrees with the majority insofar as determining the reckoning date of the taking of the lands for the purpose of just compensation.
She stressed that the reckoning date for just compensation should be on January 2, 2006, or the date of the issuance of the notice of coverage.
Ten-year ban on lands sale
THE Court also noted that under RA 6657 the awarded lands may only be transferred or conveyed after 10 years from the issuance and registration of the emancipation patent (EP) or certificate of land ownership award (Cloa).
Since the EPs or Cloas have not yet been issued to the qualified FWBs, the Court ruled that 10-year prohibitive has yet to begin its count.
The majority made the reiteration in light of the view of the minority that since the agricultural lands in Hacienda Luisita were placed under CARP coverage through stock-dispersal option award scheme on May 11, 1989, then the 10-year period prohibition on the transfer of awarded lands under RA 6657 lapsed on May 10, 1999, thus, the qualified FWBs should already be allowed to sell the lands to third parties, including HLI.
“If we maintain the position that the qualified FWBs should be immediately allowed the option to sell or convey the agricultural lands in Hacienda Luisita, then all efforts at agrarian reform would be rendered nugatory by this Court, since, at the end of the day, these lands will just be transferred to persons not entitled to land distribution under CARP,” the SC ruled.
In his separate concurring and dissenting opinion, Chief Justice Renato Corona said the FWBs should return the shares of stock which they received to HLI under the invalid stock-dispersal option award.
Corona added that each of them should also be liable to pay HLI just compensation in the amount determined by the DAR based on the fair market value of the land as of November 21, 1989.
In the modified ruling, the High Court also directed the 6,296 FWBs to forfeit and relinquish their rights over the HLI shares of stock issued to them in favor of HLI.
The Court also ordered the HLI corporate secretary to cancel the shares issued to the said FWBs and transfer them to HLI in the stocks and transfer book, which will be exempt from taxes, fees and charges.
The 4,206 nonqualified FWBs, however, shall remain as stockholders of HLI, according to the Court.
In Photo: Hacienda Luisita farmers held a protest infront of the Supreme Court in Manila. (Roy Domingo)
