G.R. No. 45828 - Director of Lands vs. Court of Appeals

An Information charging petitioner Francisco L. Baylosis, Sr. with the crime of estafa was filed before the Cebu City Regional Trial Court (RTC) under Criminal Case No. CBU-18920.
The charge stemmed from alleged misappropriation, misapplication, and conversion of funds amounting to PhP 118,181.71, taken from Pepsi-Cola Products Philippines, Incorporated (PCPPI) during the period from February 1990 to March 5, 1990 in Poblacion, Carcar, Cebu.
The accused was employed as the warehouse supervisor/custodian in charge of handling and remitting funds collected from sales operations.

During arraignment, petitioner entered a plea of NOT GUILTY; however, he failed to appear during trial as he was out on bail, leading to the trial being conducted in his absence.
Prosecution witness Ricardo Tabasa, Warehouse Operations Manager of PCPPI, detailed:

His supervisory role in enforcing the company’s policies and ensuring proper collection and remittance procedures.
The events of March 5, 1990, when petitioner confessed to having taken collections dating back to late February 1990 for financing a “special project for following-up of land title.”

A subsequent cash count and physical inventory, conducted in the presence of witnesses and signed by petitioner, revealed a shortage totalling PhP 118,181.71.
Prosecution witness Leopoldo Abella corroborated Tabasa’s testimony by affirming that petitioner voluntarily signed the inventory sheets and admitted to the misappropriation.

A demand was made for petitioner to return the deficient funds.
Petitioner’s failure to produce the amount led to his preventive suspension, an administrative investigation, and eventual dismissal from service.

On January 10, 1992, the Cebu City RTC rendered a decision finding petitioner guilty beyond reasonable doubt for estafa.

The judgment imposed a minimum prison term of seven (7) years of prision mayor and a maximum penalty of seventeen (17) years of reclusion temporal.
The judgment also mandated petitioner to indemnify PCPPI the misappropriated amount and to shoulder the costs of the proceedings.

Petitioner subsequently filed a Motion for Reconsideration with the RTC, which was denied, and later filed a Notice of Appeal.

Petitioner filed a Motion for New Trial before the Court of Appeals (CA), seeking:

Consideration of an affidavit by Zenaida C. Aya-ay, Credit and Collection Manager of PCPPI, indicating that the remaining balance petitioner owed was only PhP 21,981.71.
An opportunity to change his previous plea from not guilty to guilty.

On December 5, 2001, the CA issued a Resolution denying the Motion for New Trial, based on the ground that the affidavit’s evidence was not admissible as newly discovered evidence.
A subsequent CA Motion for Reconsideration dated December 18, 2001 was also denied in the CA Resolution of February 8, 2002.
The petitioner then elevated the issue to a Petition for Review on Certiorari under Rule 45, assailing the CA resolutions.

Whether the Court of Appeals acted with grave abuse of discretion in denying petitioner’s Motion for New Trial based on the purportedly newly discovered evidence.

Specifically, whether the affidavit of Zenaida C. Aya-ay, which cited post-judgment payments reducing the alleged amount to PhP 21,981.71, qualifies as "newly discovered evidence."
Whether granting a new trial for the purpose of enabling a plea bargaining process is appropriate under the rules and doctrines applicable to motions for new trial.