Title
City of Iligan vs. Director of Lands
Case
G.R. No. L-30852
Decision Date
Feb 26, 1988
The Supreme Court ruled that the President validly donated public land to Iligan City under Proclamation No. 469, nullifying Proclamation No. 94, as only Congress could authorize disposition of donated land.
A

Case Summary (G.R. No. 129822)

Background of Proclamations

On August 9, 1952, Proclamation No. 335 was issued, reserving certain parcels of land in Iligan City for the National Power Corporation (NPC). Subsequently, these lands included the site of the Maria Cristina Fertilizer Plant, sold to Marcelo Tire and Rubber Corporation in 1960 along with the right to occupy the land under the same proclamation. Further proclamations in 1962 and 1964 modified the status of the land and led to the sale notice for the property applied for by Marcelo Steel Corporation.

Proclamation No. 469

On October 5, 1965, President Diosdado Macapagal issued Proclamation No. 469, excluding specific parcels from Proclamation No. 335 and donating said lands to Iligan City. The Mayor of Iligan City then notified the Director of Lands regarding the ownership of these lots and requested their exclusion from a proposed auction sale.

Legal Actions by Iligan City

As no action was taken regarding their request, the City of Iligan filed a complaint for injunction against the defendants on December 23, 1965, to stop the sale of the lands. The court granted a preliminary injunction but later dismissed the complaint on April 13, 1967. Iligan City appealed, leading to a resolution certifying the case to the Supreme Court.

Issues on Executive Authority

The City of Iligan raised several errors regarding the trial court’s ruling, particularly challenging the assertion that the President lacked the authority under the Public Land Act to grant land to a local government entity. The arguments included claims of vested ownership by Iligan City and the legality of Proclamation No. 94, which purported to revoke the earlier donation.

Analysis of Proclamation Authority

The Supreme Court evaluated the authority of the President to grant lands under the Public Land Act, emphasizing that while the control over land grants is typically vested in the Secretary of Agriculture and Natural Resources and the Director of Lands, the President possesses equivalent powers under the constitutional framework, particularly to execute contracts benefiting local government units. The court referenced Section 60 and Section 69 of the Public Land Act, clarifying that such grants should not be encumbered or alienated without Congressional approval.

Conclusion on Ownership and Legality

The Court concluded that the President's issuance of Proclamation No. 469 effectively conferred ownership of the contested parcels to Iligan City, which was supported by

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