Chunky Monkeys CM Digest

Case Name: ANG TEK LIAN vs. COURT OF APPEALS

Docket: L-2516
Date: SEPT 25 1950
Ponente: BENGZON, J.

FACTS:

This is a case where the lower courts convicted petitioner Ang Tek Lian of estafa for
issuing a rubber check
Ang Tek drew a check upon China Banking Corp a sum of P4000, payable to the
order of CASH
He delivered it to one Hua Hong in exchange for money
Hua Hong delivered the 4k cash
When Hua Hong presented the check to the bank, it was dishonored for insufficiency
of funds
Hua Hong said Ang Tek went to his office asking for 4k in cash since Ang Tek could
not withdraw from his bank account
Hua Hong delivered the amount because the parties used to borrow money from
each other + Ang Tek owns a hotel and restaurant + he was assured by Ang Tek that
Ang tek had sufficient funds to meet the 4k
Ang Tek claims that he cannot be held liable for estafa since the check was made
payable to cash and it had not been endorsed by him
He further asserted that it was a basic bank practice that before offended party
accepts a check, the accused (in this case Ang Tek) cannot be said to have acted
fraudulently since the offended party was fully aware of the risks he was running
thereby

ISSUE:

Was Ang Tek properly held guilty for the crime of estafa?

RULING:

YES, Ang Tek was found guilty of estafa

Estafa is committed by issuing a postdated check or ordinary check in payment of
an obligation, knowing that at the time of issuance, he had no funds or funds were
not sufficient
There is no such uniformity in the bank practice asserted by Ang Tek
There have been instances where the Bank requires the indorsement before honoring
a check but this isnt mandatory
Negotiable Instruments Law (section 9, part D) states that a check drawn to the
order of cash is a check payable to BEARER
Bank may pay it to the person presenting it for payment without the indorsement of
the drawer
Either way the form of the check is unconnected to its dishonor
Fact of the matter is that there were insufficient funds not because the
indorsement was lacking

Balbanero, Bruzon, Go, Olazo, Ong, Santos, Sarmiento, Umandap, Yrreverre