Republic of the Philippines of what is now the CMU.

the Philippines of what is now the CMU. A total land area comprising 3,080 hectares was surveyed and
SUPREME COURT registered and titled in the name of the petitioner under OCT Nos. 160, 161 and 162. 1
Manila In the course of the cadastral hearing of the school's petition for registration of the
EN BANC aforementioned grant of agricultural land, several tribes belonging to cultural
communities, opposed the petition claiming ownership of certain ancestral lands forming
G.R. No. 100091 October 22, 1992 part of the tribal reservations. Some of the claims were granted so that what was titled to
CENTRAL MINDANAO UNIVERSITY REPRESENTED ITS PRESIDENT DR. LEONARDO A. the present petitioner school was reduced from 3,401 hectares to 3,080 hectares.
CHUA, petitioner, In the early 1960's, the student population of the school was less than 3,000. By 1988, the
vs. student population had expanded to some 13,000 students, so that the school community
THE DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD, THE COURT OF has an academic population (student, faculty and non-academic staff) of almost 15,000.
APPEALS and ALVIN OBRIQUE, REPRESENTING BUKIDNON FREE FARMERS To cope with the increase in its enrollment, it has expanded and improved its educational
AGRICULTURAL LABORERS ORGANIZATION (BUFFALO), respondents. facilities partly from government appropriation and partly by self-help measures.
True to the concept of a land grant college, the school embarked on self-help measures to
CAMPOS, JR., J.: carry out its educational objectives, train its students, and maintain various activities
This is a Petition for Review on Certiorari under Rule 65 of the Rules of Court to nullify the which the government appropriation could not adequately support or sustain. In 1984,
proceedings and decision of the Department of Agrarian Reform Adjudication Board the CMU approved Resolution No. 160, adopting a livelihood program called "Kilusang
(DARAB for brevity) dated September 4, 1989 and to set aside the decision the decision * Sariling Sikap Program" under which the land resources of the University were leased to
of the Court of Appeals dated August 20, 1990, affirming the decision of the DARAB which its faculty and employees. This arrangement was covered by a written contract. Under
ordered the segregation of 400 hectares of suitable, compact and contiguous portions of this program the faculty and staff combine themselves to groups of five members each,
the Central Mindanao University (CMU for brevity) land and their inclusion in the and the CMU provided technical know-how, practical training and all kinds of assistance,
Comprehensive Agrarian Reform Program (CARP for brevity) for distribution to qualified to enable each group to cultivate 4 to 5 hectares of land for the lowland rice project. Each
beneficiaries, on the ground of lack of jurisdiction. group pays the CMU a service fee and also a land use participant's fee. The contract
This case originated in a complaint filed by complainants calling themselves as the prohibits participants and their hired workers to establish houses or live in the project
Bukidnon Free Farmers and Agricultural Laborers Organization (BUFFALO for brevity) area and to use the cultivated land as a collateral for any kind of loan. It was expressly
under the leadership of Alvin Obrique and Luis Hermoso against the CMU, before the stipulated that no landlord-tenant relationship existed between the CMU and the faculty
Department of Agrarian Reform for Declaration of Status as Tenants, under the CARP. and/or employees. This particular program was conceived as a multi-disciplinary applied
From the records, the following facts are evident. The petitioner, the CMU, is an research extension and productivity program to utilize available land, train people in
agricultural educational institution owned and run by the state located in the town of modern agricultural technology and at the same time give the faculty and staff
Musuan, Bukidnon province. It started as a farm school at Marilang, Bukidnon in early opportunities within the confines of the CMU reservation to earn additional income to
1910, in response to the public demand for an agricultural school in Mindanao. It augment their salaries. The location of the CMU at Musuan, Bukidnon, which is quite a
expanded into the Bukidnon National Agricultural High School and was transferred to its distance from the nearest town, was the proper setting for the adoption of such a
new site in Managok near Malaybalay, the provincial capital of Bukidnon. program. Among the participants in this program were Alvin Obrique, Felix Guinanao,
In the early 1960's, it was converted into a college with campus at Musuan, until it Joven Caballero, Nestor Pulao, Danilo Vasquez, Aronio Pelayo and other complainants.
became what is now known as the CMU, but still primarily an agricultural university. From Obrique was a Physics Instructor at the CMU while the others were employees in the
its beginning, the school was the answer to the crying need for training people in order to lowland rice project. The other complainants who were not members of the faculty or
develop the agricultural potential of the island of Mindanao. Those who planned and non-academic staff CMU, were hired workers or laborers of the participants in this
established the school had a vision as to the future development of that part of the program. When petitioner Dr. Leonardo Chua became President of the CMU in July 1986,
Philippines. On January 16, 1958 the President of the Republic of the Philippines, the late he discontinued the agri-business project for the production of rice, corn and sugar cane
Carlos P. Garcia, "upon the recommendation of the Secretary of Agriculture and Natural known as Agri-Business Management and Training Project, due to losses incurred while
Resources, and pursuant to the provisions of Section 53, of Commonwealth Act No. 141, carrying on the said project. Some CMU personnel, among whom were the complainants,
as amended", issued Proclamation No. 476, withdrawing from sale or settlement and were laid-off when this project was discontinued. As Assistant Director of this agri-
reserving for the Mindanao Agricultural College, a site which would be the future campus business project, Obrique was found guilty of mishandling the CMU funds and was
separated from service by virtue of Executive Order No. 17, the re-organization law of the The petitioner CMU, in seeking a review of the decisions of the respondents DARAB and
CMU. the Court of Appeals, raised the following issues:
Sometime in 1986, under Dr. Chua as President, the CMU launched a self-help project 1.) Whether or not the DARAB has jurisdiction to hear and decide Case No. 005 for
called CMU-Income Enhancement Program (CMU-IEP) to develop unutilized land Declaration of Status of Tenants and coverage of land under the CARP.
resources, mobilize and promote the spirit of self-reliance, provide socio-economic and 2.) Whether or not respondent Court of Appeals committed serious errors and grave
technical training in actual field project implementation and augment the income of the abuse of discretion amounting to lack of jurisdiction in dismissing the Petition for Review
faculty and the staff. on Certiorari and affirming the decision of DARAB.
Under the terms of a 3-party Memorandum of Agreement 2 among the CMU, the CMU- In their complaint, docketed as DAR Case No. 5, filed with the DARAB, complainants
Integrated Development Foundation (CMU-IDF) and groups or "seldas" of 5 CMU Obrique, et al. claimed that they are tenants of the CMU and/or landless peasants
employees, the CMU would provide the use of 4 to 5 hectares of land to a selda for one claiming/occupying a part or portion of the CMU situated at Sinalayan, Valencia, Bukidnon
(1) calendar year. The CMU-IDF would provide researchers and specialists to assist in the and Musuan, Bukidnon, consisting of about 1,200 hectares. We agree with the DARAB's
preparation of project proposals and to monitor and analyze project implementation. The finding that Obrique, et. al. are not tenants. Under the terms of the written agreement
selda in turn would pay to the CMU P100 as service fee and P1,000 per hectare as signed by Obrique, et. al., pursuant to the livelihood program called "Kilusang Sariling
participant's land rental fee. In addition, 400 kilograms of the produce per year would be Sikap Program", it was expressly stipulated that no landlord-tenant relationship existed
turned over or donated to the CMU-IDF. The participants agreed not to allow their hired between the CMU and the faculty and staff (participants in the project). The CMU did not
laborers or member of their family to establish any house or live within vicinity of the receive any share from the harvest/fruits of the land tilled by the participants. What the
project area and not to use the allocated lot as collateral for a loan. It was expressly CMU collected was a nominal service fee and land use participant's fee in consideration of
provided that no tenant-landlord relationship would exist as a result of the Agreement. all the kinds of assistance given to the participants by the CMU. Again, the agreement
Initially, participation in the CMU-IEP was extended only to workers and staff members signed by the participants under the CMU-IEP clearly stipulated that no landlord-tenant
who were still employed with the CMU and was not made available to former workers or relationship existed, and that the participants are not share croppers nor lessees, and the
employees. In the middle of 1987, to cushion the impact of the discontinuance of the rice, CMU did not share in the produce of the participants' labor.
corn and sugar cane project on the lives of its former workers, the CMU allowed them to In the same paragraph of their complaint, complainants claim that they are landless
participate in the CMU-IEP as special participants. peasants. This allegation requires proof and should not be accepted as factually true.
Under the terms of a contract called Addendum To Existing Memorandum of Agreement Obrique is not a landless peasant. The facts showed he was Physics Instructor at CMU
Concerning Participation To the CMU-Income Enhancement Program, 3 a former holding a very responsible position was separated from the service on account of certain
employee would be grouped with an existing selda of his choice and provided one (1) irregularities he committed while Assistant Director of the Agri-Business Project of
hectare for a lowland rice project for one (1) calendar year. He would pay the land rental cultivating lowland rice. Others may, at the moment, own no land in Bukidnon but they
participant's fee of P1,000.00 per hectare but on a charge-to-crop basis. He would also be may not necessarily be so destitute in their places of origin. No proof whatsoever appears
subject to the same prohibitions as those imposed on the CMU employees. It was also in the record to show that they are landless peasants.
expressly provided that no tenant-landlord relationship would exist as a result of the The evidence on record establish without doubt that the complainants were originally
Agreement. authorized or given permission to occupy certain areas of the CMU property for a definite
The one-year contracts expired on June 30, 1988. Some contracts were renewed. Those purpose to carry out certain university projects as part of the CMU's program of
whose contracts were not renewed were served with notices to vacate. activities pursuant to its avowed purpose of giving training and instruction in agricultural
The non-renewal of the contracts, the discontinuance of the rice, corn and sugar cane and other related technologies, using the land and other resources of the institution as a
project, the loss of jobs due to termination or separation from the service and the alleged laboratory for these projects. Their entry into the land of the CMU was with the
harassment by school authorities, all contributed to, and precipitated the filing of the permission and written consent of the owner, the CMU, for a limited period and for a
complaint. specific purpose. After the expiration of their privilege to occupy and cultivate the land of
On the basis of the above facts, the DARAB found that the private respondents were not the CMU, their continued stay was unauthorized and their settlement on the CMU's land
tenants and cannot therefore be beneficiaries under the CARP. At the same time, the was without legal authority. A person entering upon lands of another, not claiming in
DARAB ordered the segregation of 400 hectares of suitable, compact and contiguous good faith the right to do so by virtue of any title of his own, or by virtue of some
portions of the CMU land and their inclusion in the CARP for distribution to qualified agreement with the owner or with one whom he believes holds title to the land, is a
beneficiaries. squatter. 4 Squatters cannot enter the land of another surreptitiously or by stealth, and
under the umbrella of the CARP, claim rights to said property as landless peasants. Under Sec. 10 EXEMPTIONS AND EXCLUSIONS. Lands actually, directly and exclusively used
Section 73 of R.A. 6657, persons guilty of committing prohibited acts of forcible entry or and found to be necessary for parks, wildlife, forest reserves, reforestration, fish
illegal detainer do not qualify as beneficiaries and may not avail themselves of the rights sanctuaries and breeding grounds, watersheds and mangroves, national defense, school
and benefits of agrarian reform. Any such person who knowingly and wilfully violates the sites and campuses including experimental farm stations operated by public or private
above provision of the Act shall be punished with imprisonment or fine at the discretion schools for educational purposes, seeds and seedlings research and pilot production
of the Court. centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers
In view of the above, the private respondents, not being tenants nor proven to be appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal
landless peasants, cannot qualify as beneficiaries under the CARP. farms actually worked by the inmates, government and private research and quarantine
The questioned decision of the Adjudication Board, affirmed in toto by the Court of centers and all lands with eighteen percent (18%) slope and over, except those already
Appeals, segregating 400 hectares from the CMU land is primarily based on the alleged developed shall be exempt from the coverage of this Act. (Emphasis supplied).
fact that the land subject hereof is "not directly, actually and exclusively used for school The construction given by the DARAB to Section 10 restricts the land area of the CMU to
sites, because the same was leased to Philippine Packing Corporation (now Del Monte its present needs or to a land area presently, actively exploited and utilized by the
Philippines)". university in carrying out its present educational program with its present student
In support of this view, the Board held that the "respondent University failed to show that population and academic facility overlooking the very significant factor of growth of
it is using actually, really, truly and in fact, the questioned area to the exclusion of others, the university in the years to come. By the nature of the CMU, which is a school
nor did it show that the same is directly used without any intervening agency or established to promote agriculture and industry, the need for a vast tract of agricultural
person", 5 and "there is no definite and concrete showing that the use of said lands are land and for future programs of expansion is obvious. At the outset, the CMU was
essentially indispensable for educational purposes". 6 The reliance by the respondents conceived in the same manner as land grant colleges in America, a type of educational
Board and Appellate Tribunal on the technical or literal definition from Moreno's institution which blazed the trail for the development of vast tracts of unexplored and
Philippine Law Dictionary and Black's Law Dictionary, may give the ordinary reader a undeveloped agricultural lands in the Mid-West. What we now know as Michigan State
classroom meaning of the phrase "is actually directly and exclusively", but in so doing they University, Penn State University and Illinois State University, started as small land grant
missed the true meaning of Section 10, R.A. 6657, as to what lands are exempted or colleges, with meager funding to support their ever increasing educational programs.
excluded from the coverage of the CARP. They were given extensive tracts of agricultural and forest lands to be developed to
The pertinent provisions of R.A. 6657, otherwise known as the Comprehensive Agrarian support their numerous expanding activities in the fields of agricultural technology and
Reform Law of 1988, are as follows: scientific research. Funds for the support of the educational programs of land grant
Sec. 4. SCOPE. The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless colleges came from government appropriation, tuition and other student fees, private
of tenurial arrangement and commodity produced, all public and private agricultural lands endowments and gifts, and earnings from miscellaneous sources. 7 It was in this same
as provided in Proclamation No. 131 and Executive Order No. 229 including other lands of spirit that President Garcia issued Proclamation No. 476, withdrawing from sale or
the public domain suitable for agriculture. settlement and reserving for the Mindanao Agricultural College (forerunner of the CMU) a
More specifically, the following lands are covered by the Comprehensive Agrarian Reform land reservation of 3,080 hectares as its future campus. It was set up in Bukidnon, in the
Program: hinterlands of Mindanao, in order that it can have enough resources and wide open
(a) All alienable and disposable lands of the public domain devoted to or suitable for spaces to grow as an agricultural educational institution, to develop and train future
agriculture. No reclassification of forest of mineral lands to agricultural lands shall be farmers of Mindanao and help attract settlers to that part of the country.
undertaken after the approval of this Act until Congress, taking into account ecological, In line with its avowed purpose as an agricultural and technical school, the University
developmental and equity considerations, shall have determined by law, the specific adopted a land utilization program to develop and exploit its 3080-hectare land
limits of the public domain; reservation as follows: 8
(b) All lands of the public domain in excess of the specific limits ad determined by No. of Hectares Percentage
Congress in the preceding paragraph; a. Livestock and Pasture 1,016.40 33
(c) All other lands owned by the Government devoted to or suitable for agriculture; and b. Upland Crops 616 20
(d) All private lands devoted to or suitable for agriculture regardless of the agricultural c. Campus and Residential sites 462 15
products raised or that can be raised thereon. d. Irrigated rice 400.40 13
e. Watershed and forest reservation 308 10
f. Fruit and Trees Crops 154 5 It is our opinion that the 400 hectares ordered segregated by the DARAB and affirmed by
g. Agricultural the Court of Appeals in its Decision dated August 20, 1990, is not covered by the CARP
Experimental stations 123.20 4 because:
3,080.00 100% (1) It is not alienable and disposable land of the public domain;
The first land use plan of the CARP was prepared in 1975 and since then it has undergone (2) The CMU land reservation is not in excess of specific limits as determined by Congress;
several revisions in line with changing economic conditions, national economic policies (3) It is private land registered and titled in the name of its lawful owner, the CMU;
and financial limitations and availability of resources. The CMU, through Resolution No. (4) It is exempt from coverage under Section 10 of R.A. 6657 because the lands are
160 S. 1984, pursuant to its development plan, adopted a multi-disciplinary applied actually, directly and exclusively used and found to be necessary for school site and
research extension and productivity program called the "Kilusang Sariling Sikap Project" campus, including experimental farm stations for educational purposes, and for
(CMU-KSSP). The objectives 9 of this program were: establishing seed and seedling research and pilot production centers. (Emphasis supplied).
1. Provide researches who shall assist in (a) preparation of proposal; (b) monitor project Under Section 4 and Section 10 of R.A. 6657, it is crystal clear that the jurisdiction of the
implementation; and (c) collect and analyze all data and information relevant to the DARAB is limited only to matters involving the implementation of the CARP. More
processes and results of project implementation; specifically, it is restricted to agrarian cases and controversies involving lands falling
2. Provide the use of land within the University reservation for the purpose of establishing within the coverage of the aforementioned program. It does not include those which are
a lowland rice project for the party of the Second Part for a period of one calendar year actually, directly and exclusively used and found to be necessary for, among such
subject to discretionary renewal by the Party of the First Part; purposes, school sites and campuses for setting up experimental farm stations, research
3. Provide practical training to the Party of the Second Part on the management and and pilot production centers, etc.
operation of their lowland project upon request of Party of the Second Part; and Consequently, the DARAB has no power to try, hear and adjudicate the case pending
4. Provide technical assistance in the form of relevant livelihood project specialists who before it involving a portion of the CMU's titled school site, as the portion of the CMU
shall extend expertise on scientific methods of crop production upon request by Party of land reservation ordered segregated is actually, directly and exclusively used and found
the Second Part. by the school to be necessary for its purposes. The CMU has constantly raised the issue of
In return for the technical assistance extended by the CMU, the participants in a project the DARAB's lack of jurisdiction and has questioned the respondent's authority to hear,
pay a nominal amount as service fee. The self-reliance program was adjunct to the CMU's try and adjudicate the case at bar. Despite the law and the evidence on record tending to
lowland rice project. establish that the fact that the DARAB had no jurisdiction, it made the adjudication now
The portion of the CMU land leased to the Philippine Packing Corporation (now Del subject of review.
Monte Phils., Inc.) was leased long before the CARP was passed. The agreement with the Whether the DARAB has the authority to order the segregation of a portion of a private
Philippine Packing Corporation was not a lease but a Management and Development property titled in the name of its lawful owner, even if the claimant is not entitled as a
Agreement, a joint undertaking where use by the Philippine Packing Corporation of the beneficiary, is an issue we feel we must resolve. The quasi-judicial powers of DARAB are
land was part of the CMU research program, with the direct participation of faculty and provided in Executive Order No. 129-A, quoted hereunder in so far as pertinent to the
students. Said contracts with the Philippine Packing Corporation and others of a similar issue at bar:
nature (like MM-Agraplex) were made prior to the enactment of R.A. 6657 and were Sec. 13. AGRARIAN REFORM ADJUDICATION BOARD There is hereby created an
directly connected to the purpose and objectives of the CMU as an educational Agrarian Reform Adjudication Board under the office of the Secretary. . . . The Board shall
institution. As soon as the objectives of the agreement for the joint use of the CMU land assume the powers and functions with respect to adjudication of agrarian reform cases
were achieved as of June 1988, the CMU adopted a blue print for the exclusive use and under Executive Order 229 and this Executive Order . . .
utilization of said areas to carry out its own research and agricultural experiments. Sec. 17. QUASI JUDICIAL POWERS OF THE DAR. The DAR is hereby vested with quasi-
As to the determination of when and what lands are found to be necessary for use by the judicial powers to determine and adjudicate agrarian reform matters and shall have
CMU, the school is in the best position to resolve and answer the question and pass upon exclusive original jurisdiction over all matters including implementation of Agrarian
the problem of its needs in relation to its avowed objectives for which the land was given Reform.
to it by the State. Neither the DARAB nor the Court of Appeals has the right to substitute Section 50 of R.A. 6658 confers on the DAR quasi-judicial powers as follows:
its judgment or discretion on this matter, unless the evidentiary facts are so manifest as The DAR is hereby vested with primary jurisdiction to determine and adjudicate agrarian
to show that the CMU has no real for the land. reform matters and shall have original jurisdiction over all matters involving the
implementation of agrarian reform. . . .
Section 17 of Executive Order No. 129-A is merely a repetition of Section 50, R.A. 6657. decision of the DARAB dated September 4, 1989 and the decision of the Court of Appeals
There is no doubt that the DARAB has jurisdiction to try and decide any agrarian dispute dated August 20, 1990, affirming the decision of the quasi-judicial body, as null and void
in the implementation of the CARP. An agrarian dispute is defined by the same law as any and hereby order that they be set aside, with costs against the private respondents.
controversy relating to tenurial rights whether leasehold, tenancy stewardship or SO ORDERED
otherwise over lands devoted to
agriculture. 10
In the case at bar, the DARAB found that the complainants are not share tenants or lease
holders of the CMU, yet it ordered the "segregation of a suitable compact and contiguous
area of Four Hundred hectares, more or less", from the CMU land reservation, and
directed the DAR Regional Director to implement its order of segregation. Having found
that the complainants in this agrarian dispute for Declaration of Tenancy Status are not
entitled to claim as beneficiaries of the CARP because they are not share tenants or
leaseholders, its order for the segregation of 400 hectares of the CMU land was without
legal authority. w do not believe that the quasi-judicial function of the DARAB carries with
it greater authority than ordinary courts to make an award beyond what was demanded
by the complainants/petitioners, even in an agrarian dispute. Where the quasi-judicial
body finds that the complainants/petitioners are not entitled to the rights they are
demanding, it is an erroneous interpretation of authority for that quasi-judicial body to
order private property to be awarded to future beneficiaries. The order segregation 400
hectares of the CMU land was issued on a finding that the complainants are not entitled
as beneficiaries, and on an erroneous assumption that the CMU land which is excluded or
exempted under the law is subject to the coverage of the CARP. Going beyond what was
asked by the complainants who were not entitled to the relief prayed the complainants
who were not entitled to the relief prayed for, constitutes a grave abuse of discretion
because it implies such capricious and whimsical exercise of judgment as is equivalent to
lack of jurisdiction.
The education of the youth and agrarian reform are admittedly among the highest
priorities in the government socio-economic programs. In this case, neither need give way
to the other. Certainly, there must still be vast tracts of agricultural land in Mindanao
outside the CMU land reservation which can be made available to landless peasants,
assuming the claimants here, or some of them, can qualify as CARP beneficiaries. To our
mind, the taking of the CMU land which had been segregated for educational purposes
for distribution to yet uncertain beneficiaries is a gross misinterpretation of the authority
and jurisdiction granted by law to the DARAB.
The decision in this case is of far-reaching significance as far as it concerns state colleges
and universities whose resources and research facilities may be gradually eroded by
misconstruing the exemptions from the CARP. These state colleges and universities are
the main vehicles for our scientific and technological advancement in the field of
agriculture, so vital to the existence, growth and development of this country.
It is the opinion of this Court, in the light of the foregoing analysis and for the reasons
indicated, that the evidence is sufficient to sustain a finding of grave abuse of discretion
by respondents Court of Appeals and DAR Adjudication Board. We hereby declare the