The Comprehensive Agrarian Reform Law was designed precisely to liberate peasant-farmers from the clutches of feudalism and poverty. When corporate fiction is used as mere smokescreen to the same form of feudal servitude, the lofty aim of the agrarian law is thwarted and the very problem which the law seeks to solve is perpetrated. The veil of corporate fiction will be pierced when used for improper purposes and unfair objectives. The use of corporate fiction as a means to evade legal liability is not new. This scheme or device has long been perceived to be used in other fields of law, notably taxation to minimize payment of tax with varying degrees of success and acceptability. But the continued employment of the scheme in agrarian cases is not only deplorable; it is alarming. It is time to put a lid on the cap (Sta. Monica Industrial and Development Corporation v. DAR, et al).
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