Central Mindanao University VS DARAB GR No.

100091 October 22, 1992

Central Mindanao University (CMU) is an agricultural institution owned and run by

the state in Musuan, Bukidnon Province with the total land compromises 3,080
hectares.
In 1984, CMU adopted a livelihood program called “kilusang Sariling Sikap Program”
in which the faculty and staff will be provided by CMU trainings and assistance to
cultivate 4 to 5 hectares of land with a service fee and land use participants fee. It was
also expressly stipulated that no landlord-tenant relationship existed between CMU
and the faculty / employees.
This program was conceived as a multi-disciplinary applied research extension and
productivity program to utilized available land and same time give the faculty and staff
opportunities within the confines of CMU reservation to augment salaries and an
additional income.
In 1986, Due to losses incurred the project was discontinued but then launch a self-
help project which is also a project to augment the income of the faculty and staff to
develop the unutilized land resources, again, there was no tenant-landlord
relationship exist in the agreement
In 1988, some contracts were not renewed served with notices to vacate. The non-
renewal of the contracts, discontinuance of the rice, corn, and sugar cane projects,
loss of jobs, and allege harassment cause the filing of the complaint.
However, DARAB found the Bukidnon Free Farmers Agrcilutural Laborers
Organization (BUFFALO) not beneficiaries under CARP since there is no landlord-
tenant relationship as stipulated in their agreement and CMU did not receive any
share form the harvest.
But then, DARAB, ordered the segregation of the 400 hectares of CMU and inclusion
thereof In the CARP for distribution to qualified beneficiares.
The decision is affirmed by the Court of Appeals, based on the fact that the subject
land was “not directly, actually, and exclusively used for school sites, because the
same was leased to Philippine Packing Corporation (Del Monte)
ISSUE:
Did the respondent CA committed serious errors and grave abuse of discretion
amounting to lack of jurisdiction in affirming the decision of DARAB in inclusion of the
subject land for distribution to qualified beneficiares
Ruling
Yes, It is in the opinion of the court that the 400 hectares subject of this case is not
covered by CARP because
- It is exempt from coverage under section 10 of RA 6657 because the lands are
actually, directly and exclusively used and found to be necessary for school site
and campus, including experimental farm stations for educational purposes, and
for establishing seed and seedling research and pilot production centers
It was established that the agreement with Philippine Packing Corporation was part of
the research program and were directly connected to the purpose and objectives of
the CMU as an educational institution.
In which CMU, adopted a blue print for the exclusive use and utilization of said areas
to carry out its own research and agricultural experiments as the need of CMU arises