Ang Tek Lian vs. CA

Ang Tek Lian vs. Court of Appeals

L-2516                        September, 1950

Bengzon, J.:

Facts:

            Ang Tek Lian knowing that he had no funds therefor, drew a check upon China Banking Corporation payable to the order of “cash”. He delivered it toLee Hua Hong in exchange for money. The check was presented by Lee Hua hong to the drawee bank for payment, but it w3as dishonored for insufficiency of funds. With this, Ang Tek Lian was convicted of estafa.

Issue:

            Whether or not the check issued by Ang Tek Lian that is payable to the order to “cash” and not have been indorsed by Ang Tek Lian, making him not guilty for the crime of estafa.

Held:

            No.Under Sec. 9 of NIL a check drawn payable to the order of “cash” is a check payable to bearer and the bank may pay it to the person presenting it for payment without the drawer’s indorsement. However, if the bank is not sure of the bearer’s identity or financial solvency, it has the right to demand identification or assurance against possible complication, such as forgery of drawer’s signature, loss of the check by the rightful owner, raising of the amount payable, etc. But where the bank is satisfied of the identity or economic standing of the bearer who tenders the check for collection, it will pay the instrument without further question; and it would incur no liability to the drawer in thus acting.

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