[G.R. No. 103302. August 12, 1993.

]
NATALIA REALTY, INC., and ESTATE DEVELOPERS AND INVESTORS
CORP., petitioners,vs. DEPARTMENT OF AGRARIAN REFORM, SEC. BENJAMIN
T. LEONG and DIR. WILFREDO LEANO, DAR-REGION IV, respondents.
NATALIA owns t!"" #ont$%&o&s 'a!#"(s o) (and $n Ant$'o(o tota($n% *+,
"#ta!"s. In *-.-, PD */0. s"t as$d" (ands $n Ant$'o(o, San Mat"o and
Monta(1an as towns$t" a!"as to a1so!1 t" 'o'&(at$on o2"!s'$((, 3nown as t"
L&n%sod S$(an%an Towns$t", and t$s $n#(&d"d t" NATALIA '!o'"!t$"s, w$#
"2"nt&a((4 1"#a5" Ant$'o(o 6$((s S&1d$2$s$on.
In *--7, t" DAR $ss&"d a Not$#" o) Co2"!a%" on t" &nd"2"(o'"d 'o!t$ons o)
Ant$'o(o 6$((s, w$# NATALIA $55"d$at"(4 o18"#t"d to. In *--*, t" Sa55aan
n% Ma%sasa3a sa B&ndo3 9SAMBA: )$("d a #o5'(a$nt a%a$nst NATALIA and $ts
d"2"(o'"! EDIC 1")o!" t" DAR to !"st!a$n t"5 )!o5 d"2"(o'$n% t" a!"as tat
t" )a!5"!s a!" #&(t$2at$n%.
It $s (at"! '!o2"d tat NATALIA and EDIC d$d $n )a#t #o5'(4 w$t t" (aw on
#on2"!s$on o) (ands 9S&1d$2$s$on and Condo5$n$&5 B&4"!s; P!ot"#t$2" D"#!"",
PD -,.:.
ISS<E= A!" (ands a(!"ad4 #(ass$)$"d )o! !"s$d"nt$a(, #o55"!#$a( o! $nd&st!$a( &s",
as a''!o2"d 14 t" 6o&s$n% and Land <s" R"%&(ato!4 Boa!d and $ts '!"#&!so!
a%"n#$"s '!$o! to *, J&n" *->>, #o2"!"d 14 R.A. //,., ot"!w$s" 3nown as t"
Co5'!""ns$2" A%!a!$an R")o!5 Law o) *->>?
6ELD= Y"s. T" NATALIA '!o'"!t$"s w"!" a(!"ad4 s"t as$d" )o! t" L&n%sod
S$(an%an R"s"!2at$on '&!s&ant to PD */0. )o! t" '&!'os" o) '!o2$d$n%
add$t$ona( o&s$n% to t" 1&!%"on$n% 'o'&(at$on o) M"t!o Man$(a. T&s, t"
(ands w"!" 2a($d(4 #on2"!t"d to !"s$d"nt$a( &s".
Mo!"o2"!, PD */0. $s a s'"#$a( (aw w$# 5&st '!"2a$( o2"! a %"n"!a( (aw, PD
-,..
T" (ands a!" a(so not s&18"#t to CARL, as @a%!$#&(t&!a( (andA 5"ans @(and
devoted to agricultural activity as defined in this Act and not classified as mineral,
forest, residential, commercial or industrial land.
!ndeed, lands not devoted to agricultural activity are outside the coverage of "AR#.
$hese include lands %reviously converted to non&agricultural uses %rior to the
effectivity of "AR# 'y govern(ent agencies other than res%ondent )AR.
*ince the NA$A#!A lands +ere converted %rior to 1, -une 19.., res%ondent )AR is
'ound 'y such conversion. !t +as therefore error to include the undevelo%ed %ortions of
the Anti%olo /ills *u'division +ithin the coverage of "AR#. $he *ecretary of -ustice,
res%onding to a 0uery 'y the *ecretary of Agrarian Refor(, noted in an 1%inion
19
that
lands covered 'y 2residential 2rocla(ation No. 1334, inter alia, of +hich the NA$A#!A
lands are %art, having 'een reserved for to+nsite %ur%oses 5to 'e develo%ed as hu(an
settle(ents 'y the %ro%er land and housing agency,5 are 5not dee(ed 6agricultural
lands6 +ithin the (eaning and intent of *ection 3 7c8 of R.A. No. 33,4.5 Not 'eing
dee(ed 5agricultural lands,5 they are outside the coverage of "AR#.
Kitem Duque Kadatuan Jr. 1 | P a g e
Anent the argu(ent that there +as failure to e9haust ad(inistrative re(edies in the
instant %etition, suffice it to say that the issues raised in the case filed 'y *A:;A
(e('ers differ fro( those of %etitioners. $he for(er involve %ossession< the latter, the
%ro%riety of including under the o%eration of "AR# lands already converted for
residential use %rior to its effectivity.
Kitem Duque Kadatuan Jr. 2 | P a g e