ANG TEK LIAN VS. C.A

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6) ANG TEK LIAN VS. C.A

A check drawn payable to the order of "cash" is a check payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer's endorsement,

Ang Tek Lian, petitioner vs. Court of Appeal, respondent 

87 Phil 383. September 25, 1950

FACTS: 

For having issued a rubber check, Ang Tek Lian was convicted of estafa, in the Court of First Instance of Manila. CA affirmed the verdict of CFI.

It appears that knowing he had no funds therefore, Ang Tek Lian on Nov. 16, 1946, drew the check upon the China Banking Corporation for the sum of P4000.00 payable to the order of Cash. He delivered it to Lee Hua Hong in exchange for money which the latter handed in the act, alleging that he needed badly the sum of P4000.00 represented by the check but could not withdraw it from the bank, it being then already closed. On Nov. 18, 1946, the next business day, the check was presented by Lee Hua Hong to the drawee bank for payment, but it was dishonored for insufficiency of funds, the balance of the deposit of Ang Tek Lian on both dates being P335 only. Despite of repeated efforts to notify the petitioner that the check had been dishonored by the bank, appellant could not be located anywhere until he was summoned in view of the complaint for estafa filed in connection therewith, and that the appellant has not paid as yet the amount of the check or any part thereof. 

Ang Tek Lian argued that he shall not be held liable as he did not endorsed the check to Lee Hua and that when the latter accepted the check without Ang Tek Lian's endorsement, he had done so fully aware of the risk running thereby and that he Ang Tek Lian cannot be said to have acted fraudulently.

ISSUE:

Whether estafa had been accomplished. 

HELD: 

Yes. Estafa is committed by issuing either postdated or ordinary check in payment of an obligation the offender knowing that at the time he had no funds in the bank, or the funds deposited by him in the bank were not sufficient to cover the amount of the check, and without informing the payee of such circumstances (in short done to accomplish the deceit).

Under the Negotiable Instruments Law (Sec. 9 (d)) a check drawn payable to the order of "cash" is a check payable to bearer, and the bank may pay it to the person presenting it for payment without the drawer's endorsement, As the word "cash" does not purport to be the name of any person, hence the instrument is payable to bearer. 

If the bank is not sure of the identity or financial insolvency of the bearer and the check is payable to bearer, it has the right to demand for its protection, the endorsement of the drawer or some other person known to it. But if the bank is satisfied to the identity of the bearer who tenders the check, it will pay the instrument without asking for endorsement.  In this case, the bank dishonored the check not because the drawer's endorsement was lacking but because of insufficient funds. 



Writ of Certiorari is denied, CA decision affirmed. 

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