SUPREME COURT

Manila

EN BANC

G.R. No. L-45490 November 20, 1978

THE PEOPLE OF THE PHILIPPINES, petitioner,

vs.
HON. JOSE SABIO, SR., City Judge of Cagayan de Oro and RANULFO M.
SALAZAR, respondents.

G.R. No. L-45711 November 20, 1978

TAN TAO LIAP, alias JIMMY TAN, petitioner,

vs.
THE COURT OF APPEALS, and PEOPLE OF THE PHILIPPINES, respondents.

G.R. No. L-42971 November 20, 1978

DAYLINDA A. LAGUA, petitioner,

vs.
HON. VICENTE M. CUSI, JR., as Judge of the Court of First Instance of Davao City,
THE CITY FISCAL OF DAVAO, GEMPESAW HARDWARE and PEOPLE OF THE
PHILIPPINES, respondents.

Alban, Santiago & Fornier and Jacinto D. Jimenez for petitioner Tan Tao Liap.

Wilfred D. Asis for petitioner Daylinda A. Lagua.

Roque Edmilao for respondent Ranulfo M. Salazar.

Cirilo A. Goc-Ong for respondent Gempesaw Hardware.

Solicitor General Estelito P. Mendoza, Assistant General Eulogio Raquel-Santos and

Solicitor Josefina C. Castillo for respondents (45711).

Felipe F. Montesa as private prosecutor.

CONCEPCION JR., J.:

For review on certiorari are: (1) the order of the City Court of Cagayan de Oro dated
January 6, 1977 which granted the motion to quash the information for estafa filed against
the accused in Criminal Case No. 33867, "People of the Philippines vs. Ranulfo Salazar" (L-
45490); (2) the decision of the Court of Appeals in Case CA-G.R. No. 16195-Cr, "People of
the Philippines vs. Tan Tao Liap" (L-45711) which affirmed the decision of the City Court of
Pasay City convicting the accused of the crime of estafa, and (3) the order of the Court of
First Instance of Davao City in Criminal Case No. 2023, entitled "People of the Philippines
vs. Daylinda Lagua" (L-42971) dated December 23, 1975 which denied petitioner's motion
to quash. These cases are jointly considered in view of the similarity of the issue involved
and which is whether or not the issuance of a postdated check, which is subsequently
dishonored for insufficiency of funds, in payment of a pre-existing obligation constitutes
estafa as defined and penalized under Article 315, par. 2(d) of the Revised Penal Code as
amended by Republic Act No. 4885 and Presidential Decree No. 818.

G.R. No. L-45490

The circumstances leading to this case are brief and undisputed. On May 29,1975, the
complainants, Ramon Yap and Tommy Pacana, leased to the accused, Ranulfo Salazar, the
"Tanguili Night Club" situated in Cagayan de Oro City, for the monthly rental of P2,000.00.
On May 23, 1976, Ranulfo Salazar paid P500.00 in cash and P1,500.00 in check (PBC
Check No. C179-4555 postdated May 31, 1976) to Ramon Yap for the rental of the
premises corresponding to the period from April 15 to May 15, 1976. However, when the
check was presented to the bank for payment, the same was dishonored for lack of funds to
cover the same. For failure of Ranulfo Salazar to make good his obligation, complainants
instituted a suit for estafa against him, and on June 10, 1976, the First Assistant City Fiscal
of Cagayan de Oro City filed with the City Court of Cagayan de Oro (for preliminary
investigation) the following information:

That on or about May 23, 1976, in Cagayan de Oro City, Philippines, and
within the jurisdiction of this Honorable Court, the abovenamed accused, by
means of false pretenses or fraudulent acts executed prior to or
simultaneously with the commission of the fraud, with intent to defraud and
knowing that he had no money to pay, did then and there wilfully, unlawfully
and feloniously issue a Philippine Banking Corporation Check No. C179 for
P1,500.00 in favor of Ramon Yap dated May 31, 1976, in payment of and/or
representing accused monthly rental of the Tanguili Night Club for April 15,
1976 to May 15, 1976, knowing fully well that said accused had no funds in
the bank or the funds deposited by him is not sufficient to cover the amount of
said check as evidence by the fact that when said check was presented for
encashment, it bounces or was dishonored for reason that there is no funds
available and despite demands made, accused failed and refused and still
fails and refuses to make good or pay the same, to the damage and prejudice
 of the offended party in the aforementioned sum of P1,500.00, Philippine
Currency. 1

On August 6, 1976, Ranulfo Salazar filed a motion to quash the information alleging:

1. That the facts charged do not constitute an offense; and

2. That the accused is not the drawer or the person who issued PBC Check
No. C179-4555 in the amount of P1,500.00 subject matter of this litigation in
favor of the complainant. 2

An opposition to the said motion to quash was filed by the prosecution and after the parties
were heard in oral argument, the City Court issued an order dated January 6, 1977 granting
the motion to quash by ruling that since the check was issued in payment of a pre-existing
obligation, no estafa was committed. Petitioner now seeks the nullity of said order on the
ground that the same is not in accord with law, being an erroneous interpretation of the
provision of Article 315, paragraph 2(d) of the Revised Penal Code and of Rule 112 of the
Rules of Court.

G.R. No. L-45711:

The record shows that the petitioner Tan Tao Liap and the complainant were old friends. On
several occasions from January to July, 1972, Tan Tao Liap borrowed money from Ngo
Cheng which amounted to P9,000.00. It was only in the early part of August, 1972 that Ngo
Cheng demanded from Tan Tao Liap the payment of his indebtedness plus the sum of
P500.00 as interest. 3 Tan Tao Liap informed Ngo Cheng that he did not have sufficient funds to pay
but that he might possibly be able to settle the debt about the end of the month as he was then expecting
to receive some money at that time. Tan Tao Liap further proposed to pay the loan on a staggered basis
and Ngo Cheng agreed to this proposal on the condition, however, that Tan Tao Liap would issue him
three (3) checks, namely: (1) Cheek No. 7-442560 dated August 24, 1972 for P3,000.00; (2) Check No.
7442561 dated August 31, 1972 for P3,000.00 and (3) Check No. 7442562 dated September 1, 1972, for
P3,500.00, all drawn against his account with the Consolidated Bank and Trust Company at Soler St.,
Manila. 4 The first check was deposited by Ngo Cheng with the Associated Bank at Pasay City and it was
duly paid and cleared by the Consolidated Bank as Tan Tao Liap was able to deposit sufficient funds to
cover the same. 5 Subsequently, however, Tan Tao Liap suffered business reverses and so what he did
was to inform Ngo Cheng not to deposit the second and third checks which were to mature on August 31,
1972 and September 1, 1972, respectively, because of his inability to raise the amounts to cover said
checks. As an alternative, Tan Tao Liap proposed to pay the balance in monthly installments of P300.00
until such time that he could raise enough funds. Ngo Cheng, however, turned down the offer and even
told Tan Tao Liap that he was going to file a criminal case against him if he failed to deposit the amount
for the two remaining checks. 6 At the instance of Ngo Cheng, Tan Tao Liap was charged by the City
Fiscal of Pasay City with the crime of estafa on January 24, 1973 for issuing the third check (No. 7-
442562, dated September 1, 1972, for P3,500.00) which was dishonored for lack of funds.
On November 9, 1973, the City Court rendered its decision convicting Tan Tao Liap of the
crime of estafa despite its finding that the check was issued in payment of a pre-existing
obligation. 7 Subsequently, Tan Tao Liap appealed the said decision to the Court of Appeals. However,
on October 26, 1976, the Court of Appeals rendered judgment affirming that of the City Court of Pasay
City. Not satisfied with the decision of the Court of Appeals, Tan Tao Liap now seeks a review thereof by
this Court alleging that:

THE COURT OF APPEALS ERRED IN CONSTRUING ARTICLE 315 OF

THE REVISED PENAL CODE AS HOLDING PETITIONER LIABLE FOR
ESTAFA FOR HAVING ISSUED A BAD CHECK EVEN IF THE CHECK HAD
BEEN ISSUED IN PAYMENT OF A PRE-EXISTING DEBT.

G.R No. L-42971:

The petitioner, Daylinda A. Lagua, is engaged in the logging business in Davao City under
the business name "Manuel P. Lagua Logging Enterprises". Since October of 1973, the
Lagua Enterprises had been buying their logging supplies and hardware on credit from the
Gempesaw Hardware in Davao City, managed by Marcos Chua. The items delivered on
credit to the Lagua Enterprises by the Gempesaw Hardware for the period from October,
1973 to June 20, 1974 amounted to P28,601.54. Demands were made for its payment and
sometime in July, 1974, Daylinda Lagua issued Equitable Banking Corporation Check No.
22711219A, in the amount of P30,000.00, payable to Marcos Chua and postdated August
24, 1974, the difference in the amount being the accrued interests on the amount of
P28,601.54, in payment of the obligation. Upon presentment after its due date, the said
check was dishonored by the drawee bank for insufficient funds. Accordingl