BASED ON AGBAYANIS BOOK AND ATTY. MERCADOS LECTURES
Page 108 of 190
BY: MA. ANGELA LEONOR C. AGUINALDO ATENEO LAW 2D BATCH 2010 presented for payment and it would be paid. The loan was actually extended but when the check was presented for payment, it was dishonoredthe account on which it is drawn has long been closed. The trial courts held in favor of petitioner but this was reversed by the appellate court by ruling that the check has passed through other hands before reaching the petitioner and the said check wasnt presented within reasonable time and after its issuance.
HELD: Where the instrument is not payable on demand, presentment must be made on the day it falls due. Where it is payable on demand, presentment must be made within a reasonable time after issue, except that in case of a bill of exchange, presentment for payment is sufficient if made within reasonable time after the last negotiation thereof.
Notice may be given as soon as instrument has been dishonored and unless delay is excused must be given within the time fixed by law.
In this case, presentment and notice of dishonor were not made within reasonable time.
September 1960date when the check was drawn March 1964presented to drawee bank April 1968notice of dishonor
143 LINA LIM LAO V. CA 274 SCRA 572
FACTS: Lao was a junior officer of Premier Investment House. She was authorized to sign checks in behalf of the corporation. On a relevant date, she met Fr. Palijo, the provincial treasurer for the Society of the Divine World. Palijo was authorized to invest donations with Premiere and had been investing the Societys money with Premiere. Thereafter, he was issued checks by Premiere, signed by its authorized officers, one of them being Lao. Upon presentment however for encashment, said checks were dishonored as they were drawn on insufficient funds. Palijo immediately made demands to Premiere but to no avail. Premiere was then placed under receivership. This prompted Palijo to file cases against Lao and Asprec who was the then head of operations.
HELD: The following are the elements of the first paragraph of BP22: 1. That a person makes or draws or issues any check 2. That the check is made or drawn or issued to apply on account or for value 3. That the person who makes or draws and issues the check knows at the time of issue that he doesnt have sufficient funds or in credit with the drawee bank for the payment of such check in full upon its presentment 4. That the check is subsequently dishonored by the drawee for insufficiency of funds or credit, or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment.
In the present case, the fact alone that petitioner was a signatory to the checks subsequently dishonored merely engenders the prima facie presumption that she knew of the insufficiency of funds, but it doesnt render her automatically guilty of violating BP22. The prosecution has the burden of proof to prove all the elements of the crime. If such knowledge of insufficiency of funds is proven to be actually absent or non-existent, the accused shouldnt be held liable for the offense defined under the first paragraph of BP22. Although the offense is mala prohibitum, the prosecution thereby is not excused from its responsibility of proving beyond reasonable doubt all the elements of the crime, one of which is knowledge of insufficiency of funds.
Lao didnt have actual knowledge of the insufficiency of funds from the time she drew the checks up to the time that the checks were subsequently dishonored by the bank. Further, the scope of Laos duties didnt encompass the funding of the corporations checks, her duties were limited to the marketing department of the Binondo branch. It was further found out in the trial court that when Lao drew the checks, she signed the check blank as to the name of the payee and the amount to be drawn, and without knowledge of the transaction for which they were issued.
Furthermore, there was no notice of dishonor sent to Lao. The notice of dishonor may be sent by the offended party or the drawee bank. The trial court itself found that there was absence of any personal notice of dishonor served upon Lao by the drawee bank. The notice, if any consolation, was given to the main office of Premiere and not on its branch office. Nor was there any notice sent to Lao by the offended party.
Because no notice was sent, the prima facie presumption of knowledge cannot be applied in this case.