Title
Castro vs. Mendoza
Case
G.R. No. 50173
Decision Date
Sep 21, 1993
Issuance of a bad check to pay a pre-existing debt does not constitute estafa; Supreme Court acquits petitioners, deeming it a civil matter.

Case Summary (G.R. No. 50173)

Factual Background

The case stems from a series of transactions in which Pio Castro purchased construction materials from Victor Elipe for a total unpaid amount of P18,081.15. Castro, despite repeated demands from Elipe, failed to settle the payments, leading to the issuance of a check by the younger Castro, Haniel, to cover this debt. However, this check was dishonored due to insufficient funds, prompting Elipe to file a complaint resulting in criminal charges of estafa being filed against both Castros.

Legal Charges and Court Proceedings

The petitioners were charged with estafa under Article 315, paragraph 2(d) of the Revised Penal Code, as amended by Republic Act No. 4885, concerning the issuance of a check without sufficient funds. The trial court found both Pio and Haniel Castro guilty, sentencing them to imprisonment and ordering them to indemnify Elipe.

Legal Basis for Estafa

Under the law, for a charge of estafa to hold, three essential elements must be present: (1) issuance of a check in payment of an obligation contracted at the time the check was issued; (2) lack of sufficient funds to cover the check; and (3) damage to the payee. The Court noted that the deception must occur prior to or simultaneously with the fraud.

Court's Analysis of Estafa Elements

The Court examined whether deceit and damage arose when a bad check is issued in payment of an existing obligation. It concluded that since the obligation was pre-existing, the issuance of the check did not involve deceit that benefited the drawer nor did it represent a new transaction.

Legislative Intent and Judicial Interpretation

The Court emphasized that the legislative intent, particularly under the Revised Penal Code and the subsequent Batas Pambansa Blg. 22, was not aimed at penalizing the issuance of checks for pre-existing obligations unless it could be demonstrated that the act was part of new fraudulent conduct. The ruling reiterated that the criminal liability should be strictly construed and that the mere issuan

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