G.R. No. 213875 - Diaz vs. People

The People of the Philippines (petitioner) filed an Information for violation of Batas Pambansa Blg. 22 (“B.P. 22” or the “Bouncing Check Law”) against private respondent K.T. Lim (alias Mariano Lim) before the Regional Trial Court (Branch 52, Manila), presided by Judge David G. Nitafan.
The Information alleged that on January 10, 1985, in Manila, Lim willfully drew and issued Philippine Trust Company Check No. 117383 dated February 9, 1985, payable to Fatima Cortez Sasaki in the amount of ₱143,000.00, knowing he did not have sufficient funds or credit with the drawee bank. The check was dishonored for insufficiency of funds, and despite receipt of notice, Lim failed to pay within five banking days thereafter.

On July 18, 1986, Lim moved to quash the Information on two grounds: (a) that B.P. 22 was unconstitutional; and (b) that the issued instrument was a “memorandum check,” akin to a promissory note and thus outside the statute’s penal scope.
On September 1, 1986, Judge Nitafan granted the motion, quashing the Information on the basis that B.P. 22 was unconstitutional.
The Solicitor General, on behalf of the People, filed a petition for review on certiorari with the Supreme Court, challenging the RTC’s order.

Whether B.P. 22 is a valid exercise of the State’s police power, consistent with prior holdings (e.g., Lozano v. Martinez).
Whether the constitutional prohibition against imprisonment for non-payment of debt is implicated.

Whether a memorandum check—postdated and marked “Memo” as evidence of indebtedness—falls outside B.P. 22 as being in the nature of a promissory note.
Whether issuance of such instrument in partial payment of a pre-existing obligation escapes the penal provisions of B.P. 22.