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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
Chan Robles Virtual Law Library
 
 

 
UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
March-1997 Jurisprudence                 

  • G.R. No. 51765 March 3, 1997 - REPUBLIC PLANTERS BANK v. ENRIQUE A. AGANA, SR., ET AL.

  • G.R. No. 93397 March 3, 1997 - TRADERS ROYAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 99425 March 3, 1997 - ANTONIO RAMOS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 100487 & 100607 March 3, 1997 - ARTURO JULIANO v. SANDIGANBAYAN, ET AL.

  • G.R. No. 106581 March 3, 1997 - PEOPLE OF THE PHIL. v. RENATO FLORES, ET AL.

  • G.R. No. 110419 March 3, 1997 - UERM-MEMORIAL MEDICAL CENTER, ET AL. v. NLRC, ET AL.

  • G.R. No. 114383 March 3, 1997 - PEOPLE OF THE PHIL. v. JOEL COREA

  • G.R. No. 116437 March 3, 1997 - PEOPLE OF THE PHIL. v. PABLITO ANDAN

  • G.R. No. 117161 March 3, 1997 - RAMON INGLES v. COURT OF APPEALS, ET AL.

  • G.R. No. 120704 March 3, 1997 - BARTOLOME C. CARALE, ET AL. v. PAMPIO A. ABARINTOS, ET AL.

  • G.R. No. 123321 March 3, 1997 - ROMAN CATHOLIC ARCHBISHOP OF MANILA v. COURT OF APPEALS, ET AL.

  • G.R. No. 123361 March 3, 1997 - TEOFILO CACHO v. COURT OF APPEALS, ET AL.

  • G.R. No. 125198 March 3, 1997 - MSCI-NACUSIP v. NWPC, ET AL.

  • G.R. No. 84449 March 4, 1997 - PEOPLE OF THE PHIL. v. BENEDICTO JAVIER, ET AL.

  • G.R. No. 102876 March 4, 1997 - BATAAN SHIPYARD AND ENG’G CORP. v. NLRC, ET AL.

  • G.R. No. 118607 March 4, 1997 - PEOPLE OF THE PHIL. v. JULITO FRANCO

  • Adm. Matter No. RTJ-96-1335 March 5, 1997 - INOCENCIO BASCO v. LEO H. RAPATALO

  • G.R. No. 126576 March 5, 1997 - RICARDO M. ANGOBUNG v. COMELEC, ET AL.

  • G.R. No. 83598 March 7, 1997 - LEONCIA BALOGBOG, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 94994-95 March 7, 1997 - PEOPLE OF THE PHIL. v. LILIBETH CACO

  • G.R. No. 106212 March 7, 1997 - PROGRESS HOMES, ET AL. v. NLRC, ET AL.

  • G.R. No. 108395 March 7, 1997 - HEIRS OF TEODORO GUARING, JR. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 108604-10 March 7, 1997 - PEOPLE OF THE PHIL. v. FEDERICO A. BURCE

  • G.R. No. 113420 March 7, 1997 - REPUBLIC OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 113905 March 7, 1997 - LEOPOLDO ALICBUSAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 116211 March 7, 1997 - MEYNARDO POLICARPIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 116512 March 7, 1997 - PEOPLE OF THE PHIL. v. WILLIAM O. CASIDO, ET AL.

  • Adm. Matter No. RTJ-96-1353 March 11, 1997 - DANILO B. PARADA v. LORENZO B. VENERACION

  • G.R. No. 127066 March 11, 1997 - REYNALDO O. MALONZO v. COMELEC, ET AL.

  • G.R. No. 117169 March 12, 1997 - PHILTREAD WORKERS UNION, ET AL. v. NIEVES R. CONFESOR, ET AL.

  • G.R. No. 121917 March 12, 1997 - ROBIN CARIÑO PADILLA v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 99301 & 99343 March 13, 1997 - VICTOR KIERULF, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 100333 March 13, 1997 - HILARIO MAGCALAS, ET AL. v. NLRC, ET AL.

  • G.R. No. 103611 March 13, 1997 - PEOPLE OF THE PHIL. v. CESAR HERBIETO, ET AL.

  • G.R. No. 107131 March 13, 1997 - NFD INT’L. MANNING AGENTS, INC. v. NLRC, ET AL.

  • G.R. No. 108454 March 13, 1997 - PEOPLE OF THE PHIL. v. TEDDY QUINAO, ET AL.

  • G.R. No. 109779 March 13, 1997 - PEOPLE OF THE PHIL. v. NESTOR MAÑOZCA

  • G.R. No. 110067 March 13, 1997 - LINDA T. ALMENDRAS v. COURT OF APPEALS, ET AL.

  • G.R. No. 111478 March 13, 1997 - GEORGE F. SALONGA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 111567 March 13, 1997 - PEOPLE OF THE PHIL. v. TEODORICO AVILLANO, ET AL.

  • G.R. No. 116123 March 13, 1997 - SERGIO NAGUIAT, ET AL. v. NLRC, ET AL.

  • G.R. No. 116228 March 13, 1997 - PEOPLE OF THE PHIL. v. EPIFANIO GAYON, ET AL.

  • G.R. No. 116352 March 13, 1997 - J. & D.O. AGUILAR CORP. v. NLRC, ET AL.

  • G.R. Nos. 116596-98 March 13, 1997 - PEOPLE OF THE PHIL. v. LORENZO TOPAGUEN

  • G.R. No. 117266 March 13, 1997 - CONTEMPT PROCEEDINGS AGAINST VENTURA O. DUCAT, ET AL.

  • G.R. Nos. 117955-58 March 13, 1997 - HERMINIGILDO TOMARONG, ET AL. v. ANTONIO C. LUBGUBAN, ET AL.

  • G.R. No. 119058 March 13, 1997 - PEOPLE OF THE PHIL. v. ERLINDA VILLARAN

  • G.R. No. 120853 March 13, 1997 - RUDY ALMEDA v. COURT OF APPEALS, ET AL.

  • G.R. No. 122427 March 13, 1997 - BENJAMIN LAZA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 123881 March 13, 1997 - VIVA PRODUCTIONS, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 91694 March 14, 1997 - PEOPLE OF THE PHIL. v. SABAS CALVO, JR., ET AL.

  • G.R. No. 97626 March 14, 1997 - PHIL. BANK OF COMMERCE, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 114387 March 14, 1997 - PEOPLE OF THE PHIL. v. ALEJANDRO DEVILLERES

  • G.R. No. 120592 March 14, 1997 - TRADERS ROYAL BANK EMPLOYEES UNION v. NLRC, ET AL.

  • G.R. No. 121765 March 14, 1997 - PEOPLE OF THE PHIL. v. RANDOLF B. MONTEALTO

  • G.R. No. 122646 March 14, 1997 - ADELIA C. MENDOZA v. ANGELITO C. TEH, ET AL.

  • G.R. No. 112229 March 18, 1997 - RAYMOND PE LIM v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 114924-27 March 18, 1997 - DANTE NACURAY, ET AL. v. NLRC, ET AL.

  • G.R. No. 119321 March 18, 1997 - CATALINO F. BAÑEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • Bar Matter No. 712 March 19, 1997 - PETITION OF AL ARGOSINO TO TAKE THE LAWYER’S OATH

  • G.R. Nos. 100382-100385 March 19, 1997 - PEOPLE OF THE PHIL. v. MARIO TABACO

  • G.R. No. 111157 March 19, 1997 - ITOGON-SUYOC MINES, INC. v. OFFICE OF THE PRESIDENT, ET AL.

  • G.R. No. 117029 March 19, 1997 - PELTAN DEVELOPMENT, INC., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 121112 March 19, 1997 - FELICIDAD MIRANO, ET AL. v. NLRC, ET AL.

  • G.R. No. 127325 March 19, 1997 - MIRIAM DEFENSOR SANTIAGO, ET AL. v. COMELEC, ET AL.

  • Adm. Matter No. P-95-1159 March 20, 1997 - COURT ADMINISTRATOR v. WILLIAM C. SEVILLO

  • G.R. No. 88684 March 20, 1997 - PEOPLE OF THE PHIL. v. CESAR LACBANES

  • G.R. No. 95551 March 20, 1997 - REPUBLIC OF THE PHIL. v. CONCEPCION S. ALARCON VERGARA, ET AL.

  • G.R. No. 107019 March 20, 1997 - FRANKLIN M. DRILON, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116404 March 20, 1997 - FRANCISCO LUNA, ET AL. v. NLRC, ET AL.

  • G.R. No. 117218 March 20, 1997 - PEOPLE OF THE PHIL. v. GERRY NALANGAN

  • G.R. No. 119599 March 20, 1997 - MALAYAN INSURANCE CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 127456 March 20, 1997 - JESUS A. JARIOL, ET AL. v. COMELEC, ET AL.

  • Adm. Matter No. MTJ-96-1091 March 21, 1997 - WILFREDO NAVARRO v. DEOGRACIAS K. DEL ROSARIO

  • G.R. No. 107699 March 21, 1997 - ALEX JACOBO v. COURT OF APPEALS, ET AL.

  • G.R. No. 116692 March 21, 1997 - SAMAR II ELECTRIC COOPERATIVE v. NLRC, ET AL.

  • G.R. No. 117097 March 21, 1997 - SAMAHAN NG OPTOMETRISTS SA PILIPINAS, ET AL. v. ACEBEDO INTL. CORP., ET AL.

  • G.R. No. 118436 March 21, 1997 - HEIRS OF MANUEL A. ROXAS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118836 March 21, 1997 - FEDERICO DORDAS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 122728 March 21, 1997 - CASIANO A. ANGCHANGCO, JR. v. OMBUDSMAN, ET AL.

  • G.R. No. 123037 March 21, 1997 - TEODORO Q. PEÑA v. HRET, ET AL.

  • Adm. Matter No. P-96-1184 March 24, 1997 - NBI, ET AL. v. RODOLFO TULIAO

  • G.R. No. 106588 March 24, 1997 - RAUL H. SESBREÑO v. CENTRAL BOARD OF ASSESSMENT APPEALS, ET AL.

  • Adm. Matter No. RTJ-89-318 March 25, 1997 - LUCIANA Vda. DE ARAGO v. PATERNO T. ALVAREZ

  • G.R. No. 96229 March 25, 1997 - PEOPLE OF THE PHIL. v. GLORIOSA S. NAVARRO

  • G.R. No. 124137 March 25, 1997 - ROY M. LOYOLA v. COMELEC, ET AL.

  • G.R. No. 126298 March 25, 1997 - PATRIA C. GUTIERREZ v. COMELEC, ET AL.

  • G.R. No. 99032 March 26, 1997 - RICARDO A. LLAMADO v. COURT OF APPEALS, ET AL.

  • G.R. No. 101817 March 26, 1997 - PEOPLE OF THE PHIL. v. FELIPE IMMACULATA

  • G.R. No. 107801 March 26, 1997 - PEOPLE OF THE PHIL. v. ROSARIA V. IGNACIO

  • G.R. No. 110613 March 26, 1997 - PEOPLE OF THE PHIL. v. EDGAR VILLANUEVA

  • G.R. No. 113470 March 26, 1997 - PEOPLE OF THE PHIL. v. DANILO CORBES, ET AL.

  • G.R. No. 115951 March 26, 1997 - ZEBRA SECURITY AGENCY, ET AL. v. NLRC, ET AL.

  • G.R. No. 117378 March 26, 1997 - GIL CAPILI, ET AL. v. NLRC, ET AL.

  • G.R. No. 117408 March 26, 1997 - NATIONAL INVESTMENT AND DEV. CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 117604 March 26, 1997 - CHINA BANKING CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118332 March 26, 1997 - PEOPLE OF THE PHIL. v. IRENEO PEREZ

  • G.R. No. 119528 March 26, 1997 - PAL, INC. v. CIVIL AERONAUTICS BOARD, ET AL.

  • G.R. No. 121031 March 26, 1997 - ROSAURO I. TORRES v. COMELEC, ET AL.

  • G.R. No. 122013 March 26, 1997 - JOSE C. RAMIREZ v. COMELEC, ET AL.

  • G.R. No. 124333 March 26, 1997 - NATIVIDAD P. ARAGON v. COURT OF APPEALS, ET AL.

  • G.R. No. 119877 March 31, 1997 - BIENVENIDO ONGKINGCO, ET AL. v. NLRC, ET AL.

  •  




     
     

    G.R. No. 99032     March 26, 1997 - RICARDO A. LLAMADO v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. No. 99032. March 26, 1997.]

    RICARDO A. LLAMADO, Petitioner, v. COURT OF APPEALS and PEOPLE OF THE PHILIPPINES, Respondent.

    The Solicitor General for Respondents.

    Ambrosio Padilla Mempin & Reyes Law Offices for Petitioner.


    SYLLABUS


    1. CRIMINAL LAW; BOUNCING CHECKS LAW (BP 22); PRESUMPTIONS; KNOWLEDGE OF INSUFFICIENCY OF FUNDS; NOT REBUTTED. — Petitioner denies knowledge of the issuance of the check without sufficient funds. However, knowledge involves a state of mind difficult to establish. Thus, the statute itself creates a prima facie presumption, i. e., that the drawer had knowledge of the insufficiency of his funds in or credit with the bank at the time of the issuance and on the check’s presentment for payment. Petitioner failed to rebut the presumption by paying the amount of the check within five (5) banking days from notice of the dishonor.

    2. ID.; ID.; PENALIZED IS THE ISSUANCE OF A BOUNCING CHECK REGARDLESS OF PURPOSE OR CONDITION OF ISSUANCE. — True, it is common practice in commercial transactions to require debtors to issue checks on which creditors must rely as guarantee of payment, or as evidence of indebtedness, if not a mode of payment. But to determine the reason for which checks are issued, or the terms and conditions for their issuance, will greatly erode the faith the public reposes in the stability and commercial value of checks as currency substitutes, and bring about havoc in trade and banking communities. So, what the law punishes is the issuance of a bouncing check and not the purpose for which it was issued nor the terms and conditions relating to its issuance. The mere act of issuing a worthless check is malum prohibitum.

    3. ID.; ID.; LIABILITY OF TREASURER WHO SIGNED IN SUCH CAPACITY AS OFFICER OF A CORPORATION. — Petitioner’s claim that he signed the check in blank which allegedly is common business practice, is hardly a defense. If he signed the check in blank, he made himself prone to being charged with violation of BP 22. It became incumbent upon him to prove his defenses. As Treasurer of the corporation who signed the check in his capacity as an officer of the corporation, lack of involvement in the negotiation for the transaction is not a defense. Hence, petitioner’s argument that he should not be held personally liable for the amount of the check is also untenable. The third Paragraph of Section 1 of BP Blg. 22 states: "When the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer shall be liable under this Act."


    D E C I S I O N


    TORRES, JR., J.:


    Before us is a petition to review the decision 1 of the Court of Appeals which affirmed the decision of the Regional Trial Court of Manila in Criminal Case No. 85-38653 convicting petitioner of Violation of Batas Pambansa Blg. 22, otherwise known as the Bouncing Checks Law, and sentencing him to suffer imprisonment of one (1) year of prision correccional and to pay a fine of P200,000.00 with subsidiary imprisonment in case of insolvency, and to reimburse Leon Gaw the amount of P186,500.00 plus the costs of suit.

    The facts of the case, as found by the Court of Appeals, are as follows:jgc:chanrobles.com.ph

    "Accused-appellant, Ricardo Llamado, together with Jacinto Pascual, was charged with violation of Batas Pambansa Blg. 22 and pleaded ‘not guilty’ of the crime charged.

    "Accused Jacinto Pascual remained at large. Thus trial on the merits was conducted against accused-appellant, Ricardo Llamado, only.

    "Accused Ricardo Llamado and his co-accused Jacinto Pascual were the Treasurer and President, respectively, of the Pan Asia Finance Corporation.

    "As found by the trial court, private complainant, Leon Gaw, delivered to accused the amount of P180,000.00, with the assurance of Aida Tan, the secretary of the accused in the corporation, that it will be repaid on 4 November 1983, plus interests thereon at 12% plus a share in the profits of the corporation, if any.

    "Upon delivery of the money, Accused Ricardo Llamado took it and placed it inside a deposit box. Accused Jacinto Pascual and Ricardo Llamado signed Philippine Trust Company Check No. 047809, postdated 4 November 1983, in the amount of P186,500.00 in the presence of private complainant.

    "The aforesaid check was issued in payment of the cash money delivered to the accused by private complainant, plus interests thereon for sixty (60) days in the amount of P6,500.00.

    "On 4 November 1983, private complainant deposited the check in his current account with the Equitable Banking Corporation which later informed the complainant that said check was dishonored by the drawee bank because payment was stopped, and that the check was drawn against insufficient funds. Private complainant was also notified by the Equitable Banking Corporation that his current account was debited for the amount of P186,500.00 because of the dishonor of the said check.

    "Private complainant returned to Aida Tan to inform her of the dishonor of the check. Aida Tan received the check from private complainant with the assurance that she will have said check changed with cash. However, upon his return to Aida Tan, the latter informed him that she had nothing to do with the check.

    "Thereupon, private complainant went to accused Ricardo Llamado on 11 November 1983 to inform him of the dishonor of the check. Accused offered in writing to pay private complainant a portion of the amount equivalent to 10% thereof on 14 or 15 November 1983, and the balance to be rolled over for a period of ninety (90) days. This offer was accepted by private complainant.

    "Accused, however, failed to remit to private complainant the aforesaid 10% on or before 15 November 1983 and to roll over the balance of the money.

    "Private complainant then demanded from the accused the payment of P186,500.00 but accused failed to pay and instead, Accused offered to return to private complainant only 30% of his money which was refused by the latter. Thus, the filing of the complaint for violation of Batas Pambansa No. 22 against the accused." 2

    On the other hand, petitioner’s version of the relevant facts, is as follows:jgc:chanrobles.com.ph

    "It was the practice in the corporation for petitioner to sign blank checks and leave them with Pascual so that Pascual could make disbursements and enter into transactions even in the absence of petitioner.

    "One of the checks which petitioner signed in blank and gave to Pascual is the check in question, Exhibit "A."cralaw virtua1aw library

    "The check was later issued to private complainant, filled up with the amount P186,500.00 and date November 4, 1983.

    "The check was dishonored on November 7, 1983 when private complainant presented it for payment because its payment had been stopped (Exhibits A-6 and A-7). However, there were also no sufficient funds in the account to cover the amount of the check.

    "Private complainant went to see Aida Tan, the ‘Secretary’ of Pan-Asia Finance Corporation, about the dishonor of the check because ‘she was the one who handled [sic] the check and gave it to me.’ He returned the check to Aida Tan who gave him a receipt for it (Exhibit C), and promised ‘to return the cash money.’ However, she did not do so. Instead, she returned the check to private complainant (pp. 9-11, tsn, January 6, 1986; p. 9, tsn, January 6, 1986).

    "On November 11, 1983, private complainant entered into an agreement (Exhibit H) with petitioner whereby Pan-Asia Finance Corporation would pay private complainant 10% of the P186,500.00 by November 14, or 15, and the balance will be rolled over for 90 days (pp. 1-4, tsn, June 30, 1986). Private respondent was not however paid as agreed upon.

    "In late 1985, petitioner was charged with violation of BP 22 under the following Information: . . ." 3

    After trial on the merits, the trial court rendered judgment convicting the accused of violation of Batas Pambansa No. 22, the dispositive portion of which reads:jgc:chanrobles.com.ph

    "WHEREFORE, judgment is hereby rendered finding the Accused Ricardo A. Llamado guilty of Violation of Batas Pambansa No. 22 and hereby sentences him to suffer imprisonment for a period of one (1) year of prision correccional and to pay a fine of P200,000.00, with subsidiary imprisonment in case of insolvency. The Accused is likewise condemned to reimburse Leon Gaw the aforesaid amount of P186,500.00 plus the costs of suit.

    SO ORDERED."cralaw virtua1aw library

    On appeal, the Court of Appeals affirmed the trial court’s decision.

    In this petition, petitioner alleges that:chanrob1es virtual 1aw library

    1. respondent Court of Appeals erred because it convicted petitioner of the charge of violation of Batas Pambansa Blg. 22 although the check was only a contingent payment for investment which had not been proven to be successful, thus the check was not issued "to apply on account or for value" within the contemplation of the batas;

    2. respondent Court of Appeals erred because it convicted petitioner of the charge for merely signing the check in question without being actually involved in the transaction for which the check was issued, in disregard of the pronouncement of this Court in Dingle v. IAC, 148 SCRA 595;

    3. respondent Court of Appeals erred because it refused to apply the "novation theory" recognized by this Court in Ong v. Court of Appeals, 124 SCRA 578, and Guingona, Jr. v. City Fiscal of Manila, 128 SCRA 577, despite admission by private complainant that before the charge was filed in court or even the prosecutor he had entered into a new agreement with petitioner supplanting the check in question;

    4. respondent Court of Appeals erred because it held petitioner personally liable for the amount of the check in question, although it was a check of the Pan Asia Finance Corporation and he signed the same in his capacity as Treasurer of the corporation.

    The petition is without merit.

    For clarity, petitioner’s second allegation shall be discussed first. Petitioner argues that respondent court erred in disregarding the pronouncement in Dingle v. IAC, 4 that "absent knowledge by the maker or drawer of the issuance of a check much less of the transaction and the fact of dishonor, the accused should be acquitted."cralaw virtua1aw library

    The respondent court did not err. In Dingle v. IAC, the petitioner was acquitted because: 1.) from the testimony of the sole prosecution witness, it was established that he dealt exclusively with petitioner’s co-signatory; 2.) nowhere in the prosecution witness’ testimony was the name of petitioner ever mentioned in connection with the transaction and the issuance of the check; and, 3.) the prosecution witness therein categorically stated that it was Nestor Dingle, petitioner’s co-signatory who received his two letters of demand. These lent credence to the testimony of petitioner that she signed the questioned checks in blank together with her husband without any knowledge of its issuance, much less of the transaction and the fact of dishonor. Moreover, while Paz Dingle and her husband Nestor Dingle owned the business, the business was managed by Nestor, petitioner Paz’s co-signatory.chanrobles.com : virtual lawlibrary

    The above circumstances in Dingle v. IAC do not obtain in the case at bar. Here, the private complainant testified that upon delivery of the money, petitioner took it and placed it inside a deposit box; that Jacinto Pascual and petitioner Ricardo Llamado signed the questioned check, postdated November 4, 1983, in the amount of P186,500.00 in the presence of private complainant; notice of the fact of dishonor of the check was made on petitioner, who offered in writing 5 to pay private complainant a portion of the amount equivalent to 10% thereof on 14 or 15 November 1983, and the balance to be rolled over for a period of 90 days.

    Petitioner denies knowledge of the issuance of the check without sufficient funds and involvement in the transaction with private complainant. However, knowledge involves a state of mind difficult to establish. Thus, the statute itself creates a prima facie presumption, i.e., that the drawer had knowledge of the insufficiency of his funds in or credit with the bank at the time of the issuance and on the check’s presentment for payment. 6 Petitioner failed to rebut the presumption by paying the amount of the check within five (5) banking days from notice of the dishonor. 7 His claim that he signed the check in blank which allegedly is common business practice, is hardly a defense. If as he claims, he signed the check in blank, he made himself prone to being charged with violation of BP 22. It became incumbent upon him to prove his defenses. As Treasurer of the corporation who signed the check in his capacity as an officer of the corporation, lack of involvement in the negotiation for the transaction is not a defense.

    Petitioner alleges that the respondent court erred when it convicted petitioner of violation of BP 22 when the check was only a contingent payment for investment which had not been proven to be successful, thus the check was not issued "to apply on account or for value" within the contemplation of the batas. This contention is untenable.

    The check was issued for an actual valuable consideration of P180,000.00, which private complainant handed to Aida Tan, a secretary in petitioner’s office. In fact, petitioner admits that private complainant made an investment in said amount with Pan-Asia Finance Corporation. Petitioner contends that the money which private complainant gave the corporation was intended for investment which they agreed will be returned to private complainant with interests, only if the project became successful. But then, if this were true, the check need not have been issued because a receipt and their written agreement would have sufficed.

    True, it is common practice in commercial transactions to require debtors to issue checks on which creditors must rely as guarantee of payment, or as evidence of indebtedness, if not a mode of payment. But to determine the reason for which checks are issued, or the terms and conditions for their issuance, will greatly erode the faith the public reposes in the stability and commercial value of checks as currency substitutes, and bring about havoc in trade and in banking communities. 8 So, what the law punishes is the issuance of a bouncing check and not the purpose for which it was issued nor the terms and conditions relating to its issuance. The mere act of issuing a worthless check is malum prohibitum. 9

    With regard to petitioner’s third allegation, the "novation theory" recognized by this Court in certain cases, does not apply in the case at bar. While private complainant agreed to petitioner’s offer to pay him 10% of the amount of the check on November 14 or 15, 1983 and the balance to be rolled over for 90 days, this turned out to be only an empty promise which effectively delayed private complainant’s filing of a case for Violation of BP 22 against petitioner and his co-accused. As admitted by petitioner in his Memorandum, private complainant was never paid as agreed upon.

    Petitioner’s argument that he should not be held personally liable for the amount of the check because it was a check of the Pan Asia Finance Corporation and he signed the same in his capacity as Treasurer of the corporation, is also untenable. The third paragraph of Section 1 of BP Blg. 22 states:jgc:chanrobles.com.ph

    "Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer shall be liable under this Act."cralaw virtua1aw library

    IN VIEW WHEREOF, the petition is hereby DENIED and the decision of respondent court AFFIRMED in toto.

    SO ORDERED.

    Regalado, Romero, Puno and Mendoza, JJ., concur.

    Endnotes:



    1. Penned by Justice Fernando A. Santiago, concurred in by Justices Rodolfo A. Nocon and Pedro A. Ramirez.

    2. Court of Appeals Decision, pp. 1-2; Rollo, pp. 26-27.

    3. Memorandum for petitioner, pp. 5-6; Rollo, pp. 141-142.

    4. March 16, 1987, L-75243, 148 SCRA 595.

    5. Exh. "H", Original Record, p. 29.

    6. Lozano v. Martinez, Et Al., December 18, 1986, L-63419, 146 SCRA 323; Significant Issues Involving the Bouncing Check Law, 156 SCRA 349.

    7. Ibid.

    8. People v. Nitafan, etc., Et Al., October 22, 1992, G.R. No. 75954, 215 SCRA 79; Notes and Comments on the Bouncing Checks Law, by Judge David Nitafan.

    9. Cruz v. Court of Appeals, June 17, 1994, G.R. No. 108738, 233 SCRA 301.

    G.R. No. 99032     March 26, 1997 - RICARDO A. LLAMADO v. COURT OF APPEALS, ET AL.




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