CITY OF ILIGAN VS.

DIRECTOR OF LANDS
GR. NO. L-30852 | FEBRUARY 26, 1988

FACTS
On August 9, 1952 the President of the Philippines issued Proclamation No. 335
withdrawing certain parcels of the public domain situated at Iligan City from sale or settlement
and Reserving such for the use of NPC (National Power Corporation). The NPC constructed a
fertilizer plant known as “Maria Cristina Fertilizer Plant” within the reservation covered by the
said Proclamation. On September 15,1960, under a "Deed of Sale with First Real Estate and
Chattel Mortgage" the NPC sold, ceded, transferred, and conveyed to Marcelo Tire and Rubber
Corporation the Maria Cristina Fertilizer Plant with all appurtenant machineries, equipment,
buildings, quarters, structures, etc.,"including the right of occupancy and use of the land" described
in Proclamation 335, Series of 1952; and further covenanted to "collaborate with the Department
of Agriculture and Natural Resources in facilitating the outright sale and/or right to lease for at
least 25 years, renewable for another 25 year, the lands wherein the properties of the Maria Cristina
Fertilizer Plant are erected, located and/or situated.
Proclamation No. 20, Series of 1962, excluding from the operation of Proclamation No.
335, Series of 1952, certain areas occupied by the Maria Cristina Fertilizer Plant and the
Employees Housing Compound, and declaring the same open to disposition under the provisions
of Public Land Act and Proclamation 198, Series of 1964, changing the technical description of
said excluded areas. The six (6) lots covered by and described in Proclamation 198 all begin with
SGS 2430 (Marcelo Steel Corporation). were subsequently issued. “Marcelo Steel” and “Ma.
Cristina” filed a Miscellaneous Sales Application with the Bureau of Lands for tracts of lands
containing an of 356,3474 square meters for industrial purposes. The “Marcelo Tire” and “Ma.
Cristina” are sister corporations. The Purchaser was “Marcelo Tire” but another sister corp.
“Marcelo Steel” operated and managed the said plant up to September 30, 1964.
In the notice of sale issued in Manila, Director of Lands advised the public that the Bureau
will sell to the highest qualified bidder the tract of lands covered by the Miscellaneous Sales
Application of “Marcelo Steel”. The President then issued Proclamation No. 469 which excludes
from the reservation made in favor to NPC certain lands in Iligan (Lot 1, 1-a, 3, and 4) and
DONATING said lands in favor of Iligan City. The Mayor of Iligan wrote to Director of Lands
informing him that the City is the owner of said lands and foreshores in auction by virtue of
Proclamation No. 469, Series of 1965, and requesting that the said property be excluded from the
proposed auction sale. But no action was taken on said request for exclusion and so City filed a
complaint for injunction in Court of First Instance against the Director of Lands. On December
28,1965, a preliminary injunction was issued by the court as prayed for in the complaint. President
Marcos issued Proclamation No. 94, excluding from the donation in Proc. 469 certain lands (Lot
1-a, 2-a, and 3) and declaring same for open disposition. On April 13, 1967, after the trial on the
merits, the court rendered its decision dismissing the complaint and dissolving the writ of
preliminary injunction of December 28, 1965 with costs against the plaintiff Iligan City.

ISSUE
Whether Or Not, The President has the authority to grant a portion of public domain to any
government like the City of Iligan?

RULING
 YES. The President of the Philippines can make such grant, donation or transfer to a
province, municipality or subdivision of the government for the purpose as provided and in
accordance with Section 60 aforesaid of the Public Land Act instead of the Director of lands and/or
the Secretary of Agriculture and Natural Resources. As herein before stated the Secretary of
Agriculture and Natural Resources is the executive officer-in-charged with the duty of carrying
out the provision of the Public Land Act thru the Director of Lands who acts under his immediate
control and considering that under Article VII Section 17 of the Constitution, the President of the
Philippines has control over all executive departments, bureaus, and offices, etc., the President of
the Philippines has therefore the same authority to dispose of portions of the public domain as his
subordinates, the Director of Lands, and his alter ego the Secretary of Agriculture and Natural
Resources. Such power of the President is recognized under Section 69 aforecited of the Public
Land Act. Thus, the court declared that the parcels of land in question are the properties of and
belong to the plaintiff Iligan City by virtue of Proclamation No. 469 of October 4, 1965.