REPUBLIC OF THE PHILIPPINES

METROPOLITAN TRIAL COURT

NATIONAL CAPITAL JUDICIAL REGION
BRANCH 50, CITY OF MANILA

JAMES R. RIED,
As represented by Rajiv Meimban,
-versus-

CIVIL CASE NO. 6480

For: Consignation

DANIEL E. PADILLA,
Respondent,
x----------------------------------------------x
DECISION
Before this court is Petition for Consignation filed by Rajiv Meimban
Attorney-in-Fact of James R. Reid on 30 January 2015 (hereafter referred as
Petitioner) for failure of Daniel E. Padilla (hereafter referred as Respondent) to
accept the payment of a loan incurred by Petitioner in his favor, despite
Petitioners repeated attempt to tender payment.
Consignation is the act of depositing the thing due with the court or judicial
authorities whenever the creditor cannot accept or refuses to accept payment and it
generally requires a prior tender of payment. [Limkako vs. Teodoro, 74 Phil. 313].
In order to be valid, the tender of payment must be made in lawful currency.
Tender of payment must be distinguished from consignation. Tender is the
antecedent of consignation, that is, an act preparatory to the consignation, which is
the principal, and from which are derived the immediate consequences which the
debtor desires or seeks to obtain. Tender of payment may be extrajudicial, while
consignation is necessarily judicial, and the priority of the first is the attempt to

make a private settlement before proceeding to the solemnities of consignation. [8

Manresa 325].
According to Article 1256, New Civil Code, if the creditor to whom tender
of payment has been made refuses without just cause to accept it, the debtor shall
be released from responsibility by the consignation of the thing or sum due.
Petitioners agent tried to tender payment to the respondent, however
respondent still refused said payment despite being exhibited agents authorization
from Mr. Reid, the principal, and prior notice was made to creditor his efforts
prove futile and he was left with no recourse other than depositing the said amount
in court.
On the basis of the foregoing, this Court finds that there is ground for the
consignation of the payment for the balance of the loan obtained by petitioner Reid
from respondent Padilla.
WHEREFORE, judgement is hereby rendered as follows:
1. The court declares the consignation of the payment for balance
of the loan made by the petitioner to be valid and legal and
hereby release[s] the petitioner from the obligation of paying the
said balance
SO ORDERED,
Manila, February 9, 2015

JURADO H. TAGAHATOL
Presiding Judge

Copy furnished through registered mail:

RAJIV P. MEIMBAN
Agent of Mr. JAMES R. REID

2F Unit 5 Cherry Bldg, Buenmar Avenue

Nangka, Marikina City.
DE GRACIA GUILLAMON EUBANK
VALDEZ LAW OFFICE
Counsel for the Plaintiff
Unit 403 Dona Consuelo Building
929 N. Reyes St., Sampaloc, Manila

ATTY. MARIVIC B. DE GRACIA

IBP No. 827847, 6/8/11, QC
PTR No. 576784, 6/6/15, QC
Attorneys Roll No. 374435
MCLE Compliance No. 11-0989699