Held:
Central Mindanao University vs. Department of Agrarian Reform Adjudication
Board
Facts:
The petitioner, the CMU, is an agricultural educational institution owned and run
by the state located in the town of Musuan, Bukidnon province. It started as a farm
school at Marilang, Bukidnon in early 1910, in response to the public demand for
an agricultural school in Mindanao. It expanded into the Bukidnon National
Agricultural High School and was transferred to its new site in Managok near
Malaybalay, the provincial capital of Bukidnon.
On 16 January 1958, President Carlos Garcia issued Proclamation No. 467 reserving
for the Mindanao Agricultural College, now the CMU, a piece of land to be used as
its future campus. In 1984, CMU embarked on a project titled "Kilusang Sariling
Sikap" wherein parcels of land were leased to its faculty members and employees.
Under the terms of the program, CMU will assist faculty members and employee
groups through the extension of technical know-how, training and other kinds of
assistance. In turn, they paid the CMU a service fee for use of the land. The
agreement explicitly provided that there will be no tenancy relationship between
the lessees and the CMU.
When the program was terminated, a case was filed by the participants of the
"Kilusang Sariling Sikap" for declaration of status as tenants under the CARP. In its
resolution, DARAB, ordered, among others, the segregation of 400 hectares of the
land for distribution under CARP. The land was subjected to coverage on the basis
of DAR's determination that the lands do not meet the condition for exemption,
that is, it is not "actually, directly, and exclusively used" for educational purposes.
Issue:
Is the CMU land covered by CARP? Who determines whether lands reserved for
public use by presidential proclamation is no longer actually, directly and
exclusively used and necessary for the purpose for which they are reserved?
The land is exempted from CARP. CMU is in the best position to resolve and answer
the question of when and what lands are found necessary for its use. The Court
also chided the DARAB for resolving this issue of exemption on the basis of "CMU's
present needs." The Court stated that the DARAB decision stating that for the land
to be exempt it must be "presently, actively exploited and utilized by the university
in carrying out its present educational program with its present student population
and academic faculty" overlooked the very significant factor of growth of the
university in the years to come.
On 16 January 1958, President Carlos Garcia issued Proclamation No. 467 reserving
for the Mindanao Agricultural College, now the CMU, a piece of land to be used as
its future campus. In 1984, CMU embarked on a project titled "Kilusang Sariling
Sikap" wherein parcels of land were leased to its faculty members and employees.
Under the terms of the program, CMU will assist faculty members and employee
groups through the extension of technical know-how, training and other kinds of
assistance. In turn, they paid the CMU a service fee for use of the land. The
agreement explicitly provided that there will be no tenancy relationship between
the lessees and the CMU.
When the program was terminated, a case was filed by the participants of the
"Kilusang Sariling Sikap" for declaration of status as tenants under the CARP. In its
resolution, DARAB, ordered, among others, the segregation of 400 hectares of the
land for distribution under CARP. The land was subjected to coverage on the basis
of DAR's determination that the lands do not meet the condition for exemption,
that is, it is not "actually, directly, and exclusively used" for educational purposes.