C & M TIMBER CORPORATION V. HON. ANGEL C. ALCALA

[G.R. No. 111088. June 13, 1997]

FACTS
C & M Timber Corporation seeks the nullification of the order of the Office of the President, declaring as of no force and effect Timber License Agreement issued to petitioner covering hectares of forest land in the Province of Aurora and Quirino Province.

It appears that Filipinas Loggers Development Corporation (FLDC), through its president and general manager, requested a timber concession over the same area covered by petitioners alleging that the same had been cancelled pursuant to a presidential directive banning all forms of logging in the area. Accordingly the Ministry of Natural Resources issued TLA covering the same area, thus, began logging operations

Then Minister of Natural Resources suspended the TLA for FLDCs gross violation of the terms and conditions thereof, especially the reforestation and selective logging activities and in consonance with the national policy on forest conservation. In spite of the suspension, said concessionaire has continued logging operations in violation of forestry rules and regulations.

Learning of the cancellation of FLDCs TLA, petitioner requested for the revalidation of its TLA. Petitioner alleged that because of the log ban imposed by the previous administration it had to stop its logging operations, but that when the ban was lifted, its concession area was awarded to FLDC. Petitioner prayed that it be allowed to resume logging operations.

Secretary Fulgencio Factoran, Jr., of the DENR, declared petitioners TLA as of no more force and effect and consequently denied the petition for its restoration. It was ruled that petitioner’s petition was barred by reason of laches, because petitioner did not file its opposition to the issuance of a TLA to FLDC. In the decision the Office of the President, the DENRs order was affirmed. Hence, this petition.

ISSUE
Whether petitioner’s suspended TLA is still in force and effect

RULING
No. After suspending petitioners TLA for mediocre performance in reforestation under an order, the DENR consequently cancelled the TLA a few years later because of a Presidential directive imposing a log ban. 

It thus appears that petitioners license had been cancelled way back before its concession was awarded to FLDC. It is noteworthy that petitioner admits that at the time of the award to FLDC in 1984 petitioner was no longer operating its concession because of a log ban although it claims that the suspension of operations was only temporary. As a result of the log ban, the TLA of petitioner, along with those of other loggers in the region, were cancelled and petitioner and others were ordered to stop operations. 
Petitioner also admits that it received a telegram sent on August 24, 1983 by Director Cortes of the BFD, directing it to stop all logging operations to conserve our remaining forests. Now petitioner did not protest the cancellation of its TLA. Consequently, even if consideration is given to the fact that a year later, on September 24, 1984, its counsel protested the grant of the concession to another party (FLDC), this failure of petitioner to contest first the suspension of its license on June 3, 1983 and later its cancellation on August 24, 1983 must be deemed fatal to its present action.


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