Power of Removal

CASE TITLE: CITY OF ILIGAN, plaintiff-appellant, vs. DIRECTOR OF LANDS, THE

DISTRICT LAND OFFICER OF LANAO DEL NORTE, and MARCELO STEEL
CORPORATION, defendants-appellees.
G.R. No. L-30852 February 26, 1988
PONENTE: Justice GANCAYCO

FACTS:
1. President issued Proclamation 335:
a. Withdrawing certain parcels of public land in Iligan from sale or settlement and
b. Reserving such for the use of NPC (Nat’l Power Corporation)
2. By virtue of said proclamation, NPC constructed a fertilizer plant named “Maria Cristina”
3. Later, NPC:
a. Sold the fertilizer plant to “Marcelo Tire and Rubber Corp” with all the machineries, right
of occupancy, and use of land
b. Covenanted to collaborate with DANR in facilitating sale and right to lease for at least 25
years, the lands where plant is erected
4. Proclamation 20 and 198 were issued:
a. Proc. 20 – excluding from operation of Proc. 335 certain areas occupied by “Ma.
Cristina” and Employees Housing and declaring such lands for OPEN DISPOSITION
b. Proc. 198 – changing the technical description of said areas (6 lots)
5. “Marcelo Steel” and “Ma. Cristina” filed a Msc. Sales Application with the Bureau of
Lands
a. “Marcelo Tire” and “Ma. Cristina” are sister corporations.
b. Purchaser was “Marcelo Tire” but another sister corp. “Marcelo Steel” operated said
plant
6. In the notice of sale issued in Manila, Director of Lands advised that Bureau will sell in
an auction said lands of “Marcelo Steel”
7. President then issued Proc. 469 – excluding 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.
8. Mayor of Iligan wrote to Director of Lands informing him that City is the owner of said
lands and foreshores in auction.
9. BUT no action was taken on said request for exclusion and so City filed a complaint for
injunction in CFI against Director. Injunction temporarily issued.
10. Pending case, President Marcos issued Proc. 94 – excluding from the donation in Proc.
469 certain lands (Lot 1-a, 2-a, and 3) and declaring same for open disposition.
11. CFI dismissed the complaint of City and dissolved injunction. Hence, this appeal.

ISSUE/s: WON President has the authority to grant a portion of public domain to any
government like the City of Iligan.

RULING: YES

1. Section 60 of Public Land Act states that tracts of land can be disposed of by grant,
donationor transfer made to a province, municipality, branch, or subdivision of government for
purposes conducive to public interest.
a. Who has authority to donate? Secretary of Agriculture and National Resources through
Director of Lands (Sec 60)
2. Can President donate instead of Secretary and Director? YES
a. Director has direct executive control of lands (e.g. lease, sale, concession, disposition of
land of public domain)
 b. Director SUBJECT to control of Secretary of Agriculture.
c. Secretary’s control is SUBJECT to control of PRESIDENT
d. Under Art VII Sec 17: President shall control ALL executive departments, bureaus, and
offices.
e. Hence, President has the same authority to dispose of portions of public domain as his
subordinates.
f. Such authority to dispose is also granted to the President under Section 69 of the Public
Land Act.
3. Since, President has the authority to donate lands of public domain for residential,
commercial, & industrial purposes. Questioned Proclamation469 is VALIDand binding:
a. Ownership of lands now vested in City of Iligan.
b. Mayor of City upon proclamation immediately had the lots surveyed and entered into
negotiation with National Investment and Development Corp. and those interested in
developing the Coco-Chemical Plant in order to accelerate economic expansion in the City.
4. Proclamation 94 is NULL and VOID as said parcels had been segregated and had
become property of Iligan.
5. Decision of CFI REVERSED.

DISPOSITIVE PORTION: WHEREFORE, the decision of the Court of First Instance of Iligan
dated April 13, 1967 is hereby REVERSED and SET ASIDE and another judgment is hereby
rendered declaring 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. No pronouncement as
to costs. SO ORDERED.