Central Mindanao University vs.

Department of Agrarian Reform Adjudication Board

215 SCRA 86 (1992)

Facts:
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?

Held:
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.