107 Terrado v. Court of Appeals G.R. No. L-58794 August 24 1984 T!"#C: Extinguishment of Agency "!N$NT$: GUERRERO, J.:
A%T&!R : Kelsey N!T$'(
)ACT'( 1. Pursuant to Act No. !" of the Phili##ine $egislature the %isheries situate& in the locality 'no(n as )anga*ul, +ayam*ang, Pangasinan, recently &eclare& *y the courts as #u*lic lan& (as resere& an& the usufruct thereof ce&e& to the munici#ality of +ayam*ang, Proince of Pangasinan, to be used or disposed of in accordance with the general municipal law relative to the letting of fisheries in municipal waters. -. Proi&e& ho(eer ho(eer that the tim*er an& other forest #ro&ucts #ro&ucts therein shall *e #lace& un&er the a&ministration a&ministration an& control of the forest serice. Proi&e& further, that the cession shall not *e inter#rete& as limiting the #o(er of the ecretary of Agriculture an& Natural Resources to #rescri*e rules an& regulations for the #rotection of game *ir&s, mammals or fish (ithin the area ce&e& to the munici#ality of +ayam*ang. /. On )ay "0, "12, the anggu anggunian nian +ayan +ayan of +ayam*ang, +ayam*ang, Pangasin Pangasinan an #asse& #asse& Resolution Resolution No. /0 enacting enacting Or&inanc Or&inancee NO. 3, series of "12, esta*lishing the +ayam*ang %ishery an& 4unting Par' an& )unici#al 5ater he& em*racing all the ast area of the )anga*ul %isheries consisting of a*out -,!6" hectares (ith "1 fish#on&s an& not less than ",0!! hectares of (atershe& area. . 7n the sai& or&ina or&inance nce,, the munici#a munici#alit lity y &esig &esignat nate& e& a##oin a##ointe& te& an& consti constitut tute& e& #riat #riatee res#on res#on&en &entt Gerunc Geruncio io $acue $acuesta sta as )anager8 )anager8A&mi A&minist nistrator rator for a #erio& #erio& of -0 years, years, rene(a*le for another another -0 years, years, un&er the con&ition con&ition that sai& respondent shall pay the municipality. a sum equivalent to 10% of the annual gross income that may be derived from the sale of forest products, wild game and fish, fish , (hich amount shall not *e less than P-!!,!!!.!! annually. 4e (as further required to post a bond in the amount of P200,000.00 to guaranty payment of the 10% due the municipality. municipality. 0. )unici#al )unici#al Or&inanc Or&inancee No. 3 (as a##roe& *y the Proinci Proincial al +oar& of Pangasin Pangasinan an an& thereafter thereafter (as (as for(ar&e& for(ar&e& to the then ecretary of Agriculture Agriculture an& Natural Resources for a##roal #ursuant to the #roisions of the %isheries Act, Act Act No. !!/. 6. $ater, the ecretary ecretary &isa##roe& &isa##roe& the Or&inance Or&inance *ecause it grants fishery #riileges #riileges to res#on&ent $acuesta $acuesta (ithout (ithout the *enefit *enefit of com#etitie #u*lic hearing in contraention of the #roisions of Act !!/ as amen&e&. 2. Res#on&en Res#on&entt $acuesta $acuesta inter#ose& inter#ose& an a##eal from from the &isa##roal &isa##roal *y the ecretary ecretary of Agricu Agriculture lture an& Natural Natural Resource Resourcess to the Office of the Presi&ent *ut the a##eal (as (ith&ra(n *y sai& res#on&ent in his letter &ate& July ", "122. 3. 9he )unici#ali )unici#ality ty then informe& informe& res#on&ent res#on&ent $acuesta $acuesta of the &isa##roal &isa##roal of the Or&inance Or&inance *y the ecretary ecretary of Agric Agricultur ulturee Natural Resources an& &irecte& him to refrain an& &esist from acting as A&ministrator8)anager A&ministrator8)anager un&er the contract *ut the latter refuse& an& insiste& in maintaining #ossession of the fisheries. 1. ;es#ite such refusal, the anggunian anggunian +ayan of +ayam*ang, +ayam*ang, Pangasinan Pangasinan #asse& Resolution No. /", series of "122, resoling resoling to a&ertise for #u*lic *i&&ing all fisheries at the )anga*ul area for four years an& to &irect the )unici#al 9reasurer to #re#are the necessary notices of #u*lic *i&&ing, an& accor&ingly, the )unici#al )ayor an& the )unici#al 9reasurer cause& to issue a Notice of Pu*lic Pu*lic +i&&ing. "!. Among the (inning *i&&ers *i&&ers (ere the #etitioners #etitioners herein, herein, the s#ouses $y&ia $y&ia 9erra&o 9erra&o an& )artin Rosario an& ;omingo %ernan&e< (ho (ere imme&iately #lace& in #ossession of the )anga*ul fisheries as of July 6, "122. "". Priate res#on&ent res#on&ent Geruncio $acuesta $acuesta imme&iately file& file& a #etition for #rohi*ition #rohi*ition an& man&amus (ith (ith &amages (ith the =%7 =%7 of Pangasinan against the )unici#al )ayor, the )unici#al 9reasurer, the anggunian +ayan an& the mem*ers thereof, #raying that the res#on&ent munici#al officials officials name& therein *e #rohi*ite& from executing an y contract of lease (ith the (inning *i&&ers an& from enforcing Resolution No. /", series of "122, an& further as'e& that a tem#orary restraining or&er *e issue& against sai& res#on&ent officials from #erforming the acts en>oine&. "-. 9he situation situation *ecame serious serious as the anggunian anggunian +ayan #asse& #asse& Resoluti Resolution on No. /, series of "122 ?re@uesting ?re@uesting the assistanc assistancee from the ;e#artment of Natural Resources, the Phili##ine =onsta*ulary, ;e#artment of Justice, the Proincial %iscal, the Proincial Goernor an& other agencies, for them to en>oin res#on&ent from &istur*ing an& interfering (ith the a&ministration *y the )unici#ality )unici#ality of )anga*ul %isheries an& an& other areas.? #''%$*'+:
1. W/N the Munici Municipal pal Order Order granting granting Lacues Lacuesta ta administ administrati ration on is valid &$L,: ". No. 7t grant grante& e& the a&mini a&ministra stration tion (ithou (ithoutt the the *enefit *enefit of #u*lic #u*lic *i&&ing *i&&ing.. RAT#!: 9he Or&inance is clearly against the #roisions of the la( for it grante& exclusie fishery #riileges to the #riate res#on&ent (ithout *enefit of #u*lic *i&&ing. *i&&ing. Un&er the %isheries %isheries Act, Act, the )unici#ality may not not &elegate to a #riate in&ii&ual in&ii&ual as )anager8A&ministrat )anager8A&ministrator or to ?use or &is#ose of the fisheries #ortion in accor&ance (ith the general la( on munici#al (aters? nor to charge foes for fishing an& hunting in the #ar', much less sell forest #ro&ucts, (il& games an& fish from the area.
Neither can the )unici#ality grant the exclusie #riilege of fishing for a #erio& more than fie 0B years, (hereas in the instant case, the #erio& grante& the )anager8A&ministrator )anager8A&ministrator (as for t(enty8fie -0B years, rene(a*le for another t(enty8fie years. )oreoer, un&er the s#ecific #roision of Act No. !", there is the #roiso that the tim*er an& other forest #ro&ucts therein shall *e #lace& un&er the a&ministration a&ministration an& control of the forest serice so that insofar as the or&inance relates to the tim*er an& other forest
#ro&ucts an& the reforestation of the tim*erlan& #ortions in&icate& in Plan 7#&81- inclu&ing the #o(ers, &uties an& res#onsi*ilities of the )anager8A&ministrator affecting the forestry #ortions are iolatie of Act No. !". C 9he Or&inance is illegal an& contrary to la(, the contract execute& in #ursuance thereto is conse@uently illegal. Acts execute& against the #roisions of man&atory or #rohi*itory la(s shall *e oi&, exce#t (hen the la( itself authori
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