Case Summary (G.R. No. 152666)
Facts of the Case
The genesis of the case is rooted in a transaction where MTT applied for a 360-day Usance Letter of Credit (LC) from PCIB to import four tourist buses valued at approximately US$430,000. As a condition for the LC, MTT issued post-dated checks to PCIB, totaling P4,300,000. While five of these checks were honored, the sixth check, dated January 1991, was dishonored due to insufficient funds. Following dishonor, PCIB sought payment not only for the check but also for an exchange differential due to fluctuations in the peso-dollar rate, which MTT later contested as a mistaken agreement.
Legal Proceedings
In light of the dishonored check and subsequent payments, PCIB filed criminal charges against Marciano Tan for nine counts of violating B.P. Blg. 22. The trial court convicted Tan but absolved him of civil liability, as it deemed that liabilities solely belonged to MTT, the corporate entity, rather than Tan personally. The trial court sentenced him to 30 days for each violation. Tan appealed this decision to the Court of Appeals, which upheld the trial court's ruling, leading to the petition for review.
Elements of the Offense
For a conviction under B.P. Blg. 22, the prosecution must prove three essential elements: (1) that the accused issued a check for value, (2) that the accused had insufficient funds or credit at the time of issuance, and (3) that the check was subsequently dishonored. The prosecution bears the burden of proving the accused's knowledge of insufficient funds at the time of issuing the check.
Knowledge of Insufficiency
The law establishes a prima facie presumption of knowledge concerning insufficient funds for the accused if certain conditions are met. Specifically, if a check is dishonored and notice of dishonor is received, the accused must make payment or arrangements for payment within five banking days to rebut this presumption. Failure to do so can result in a conviction.
Court's Analysis
The Supreme Court evaluated whether appellant had adequately rebutted the presumption of knowledge regarding the dishonored check. Tan argued that his obligations were extinguished when he surrendered the buses to PCIB, which had a substantial estimated value. The Court noted that by accepting the buses as payment, PCIB effectively satisfied the monetary obligations represented by the dishonored checks.
Ruling
The Supreme Court found merit in the petition. It noted that the value of the surrendered buses exceeded
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Case Background
- The case involves Marciano Tan as the petitioner against the Philippine Commercial International Bank (PCIB) as the respondent.
- The decision is derived from the Court of Appeals' ruling affirming the conviction of Tan for nine counts of violation of Batas Pambansa Blg. 22 (B.P. Blg. 22), commonly referred to as the Bouncing Checks Law.
- The timeline of events dates back to the issuance of postdated checks by Master Tours and Travel (MTT), where Tan served as executive vice-president.
Facts of the Case
- On July 16, 1990, MTT applied for a 360-day Usance Letter of Credit (LC) with PCIB to import four tourist buses valued at US$430,000 from Daewoo Corporation.
- The parties agreed on the total value of the buses to be close to P10 Million Pesos based on prevailing exchange rates.
- MTT issued five postdated checks of P716,666.66 each for the months of August to December 1990, and another check of P716,666.70 in January 1991, totaling P4,300,000.
- The last check dated January 1991 was dishonored due to insufficient funds, prompting PCIB to demand payment from MTT.
Development of Obligations
- Alongside the checks, PCIB demanded payment for an exchange rate differential amounting to P2,061,331.20, which MTT initially agreed to pay but later contested as a mistake.
- MTT issued 14 additional postdated checks in response to this demand, but only the first five were honored. The remaining nine checks were dishonored, leading to the criminal charges against Tan.
Legal Proceedings
- MTT ultimate