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Ysmael vs The Deputy Executive Secretary (1990)

Facts:
-Feb 1986: Petitioner sent a letter to the Office of the President and another letter to Minister
Maceda of the Ministry of Natural Resources seeking:
1) Reinstatement of its timber license agreement which was cancelled in August 1983 during
the Marcos administration
2) Revocation of TLA No. 356 which was issued to Twin Peaks Development and Realty
Corporation without public bidding and in violation of forestry laws, rules, and regulations
3) Issuance of an order allowing Petitioner to take possession of all logs found in the
concession area
-Petitioner argued that its logging area was re-awarded to other logging concessionaires without a
formal award or license, as these entities were controlled or owners by relatives of Marcos
-The Ministry ruled that a timber license was not a contract within the due process clause of the
Constitution
-Petitioner moved for reconsideration of the Order reiterating its request that TLA No. 356 issued
to private responded be declared null and void
-The Ministry of Natural Resources denied this motion
-The Logging Ban in Quirino was lifted as per MNR
-Petitioner appealed from the orders of MNR to the Office of the President
-The Deputy Exec Sec Macaraig denied petitioner’s appeal and that it was not terminated in the
MNR

Issue: W/N Timber licenses, permits and license agreements are contracts

Ruling: No
-Timber licenses, permits, and license agreements are the principal instruments by which the State
regulates the utilisation and disposition of forest resources to the end that public welfare is
promoted
-They may be amended, modified, replaced or rescinded by the Chief Executive when national
interests so require
-Thus, they are not deemed contracts within the purview of the due process of law clause
-The administrative bodies have the authority to handle matters within their scope without
interference by the courts of law
-They are in better positions to determine issues within their specialty
-It is an established doctrine that the decisions and orders of administrative agencies have, upon
their finality, the force and binding effect of a final judgement within the purview of the doctrine
of res judicata

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