575 Phil. 485
CARPIO MORALES, J.:
7. In the event the Entrustee defaults in his/its obligations or breaches or fails to comply with the terms and conditions of this Trust Receipt, or upon default in, breach of or noncompliance with the obligation evidenced by Annex A hereof or the agreement under which the Entruster issued the letter of credit under the terms of which the Trust Property was purchased ("events of default"), the Entruster may cancel this trust, and thereupon take possession of the Trust Property and/or such proceeds as may then have been realized therefrom, and have the goods sold and the proceeds of such sale applied, in accordance with the provisions of Section 7 of the Trust Receipts Law. In all cases where the Entruster is compelled to resort to the cancellation of this Trust Receipt or to take any other legal action to protect its interest, the Entrustee shall pay attorney's fees fixed at 15% of the total obligation of the Entrustee, which in no case shall be less than P500.00 exclusive of the costs and fees allowed by law and the other expenses of collection incurred by the Entruster. Any deficiency resulting from the sale of the Trust Property shall be paid by the Entrustee within 24 hours from such sale; failing which the Entruster may take such legal action, without further notice to the Entrustee, as it may deem necessary to collect such deficiency from the Entrustee.[6] (Underscoring supplied)MTT thus surrendered the buses to PCIB which accepted them in mid 1991 and March 1992. By MTT's claim the buses were, at the time of surrender, estimated to be "about 6.6 million."
x x x xReplying, petitioner's counsel, by letter of July 22, 1992, wrote PCIB as follows:
From the records now in our possession, it appears that despite promises made by you to make good your obligations, no performance thus far has been made. As of June 30, 1992, inclusive of interests and penalty charges, your obligations totaled P10,327,591.21.
Since adequate time and opportunity had already been given you by our client, you are now requested to remit to it the aforesaid sum of P10,327,591.21 within five (5) days from your receipt hereof, otherwise, we shall bring you to court.
x x x x[7] (Underscoring supplied)
Your letters of July 9, 1992 were endorsed to us for appropriate reply by our clients, Master Tours and Travel Corporation and Marciano Tan.There is no showing if PCIB reacted to the above-quoted letter of petitioner's counsel. PCIB subsequently filed in October 1992 a criminal complaint against petitioner before the Makati City Prosecutor's Office which resulted in the filing on April 1, 1993 of the nine informations against him for violation of B.P. Blg. 22 before the RTC of Makati. The first information, Criminal Case No. 93-2365, reads:
Your letter to Mr. Tan makes mention of two (2) trust receipts signed by him covering the importation of the four (4) units DAEWOO buses you want our client to account for. However, Philippine Commercial International Bank ("PCIB") never furnished our client copies thereof. And up to this date, none is in the possession of our client. Could you please provide our client with copies of the documents?
Delving into the crux of your demand, kindly be advised that our clients voluntarily surrendered physical possession and custody of the four (4) DAEWOO buses to PCIB as early as August [sic] 1991. The units were accepted by PCIB and, therefore, there no longer exist[s] any liability or obligation on the part of our clients towards that of yours. As clearly stated in your subject letter written to Mr. Marciano Tan, under the terms of the trust receipts, our client has the alternative obligation to either surrender the buses upon demand or pay the total value thereof. As the buses have been surrendered and delivered to your client, our client's obligation has been extinguished.
We suggest then that your clarify the fact of delivery of the four (4) units with your client.
We do hope to have amply answered and enlightened you on the status of the matter regarding our client's supposed liability on the four (4) buses.[8] (Emphasis and underscoring supplied)
That on or about the 29th day of January 1991, in the Municipality of Makati, Metro Manila, Philippines and within the jurisdiction of this Honorable Court, the above-named accused as the duly authorized signatory of Master Tours and Travel Corporation, did then and there willfully, unlawfully and feloniously make or draw and issue to Philippine Commercial Int[ernational] Bank to apply on account or for value the check/described below:The other eight informations, Criminal Case Nos. 93-2366 to 93-2373, are similarly worded and for the same amount, differing only as to the check numbers, the dates of issue and, with respect to Criminal Cases No. 93-2368 to 93-2373, the cause of dishonor ("account closed").[10]
Check No.: 677744 Drawn Against: Philippine Banking Corp. In the amount: P198,428.42 Dated/Postdated: May 15, 1991 Payable to: Philippine Commercial International Bank
said accused well knowing that at the time of issue thereof Master Tours & Travel Corp. had no sufficient funds in or credit with the drawee bank for the payment in full of the face amount of the check upon its presentment, which check was presented for payment within ninety (90) days from the date thereof was subsequently dishonored by the drawee bank for the reason "Drawn Against Insufficient Funds" and, despite receipt of notice of said dishonor, the accused and/or Master Tours & Travel Corporation failed to pay said payee the face amount of said check or to make arrangement for full payment thereof within five (5) banking days after receiving notice.[9] (Underscoring partly in the original and partly supplied)
WHEREFORE, the Court finds the accused MARCIANO T. TAN to be GUILTY beyond reasonable doubt of these nine (9) criminal charges for violation of BP 22, and hereby sentences him to suffer imprisonment for THIRTY (30) days for EACH of the NINE [9] CRIMNAL OFFENSES CHARGED.On petitioner's appeal, the Court of Appeals affirmed the trial court's decision by Decision of March 19, 2002. Hence, the present Petition for Review,[14] faulting the appellate court
For lack of evidence, the claim of civil liability arising from the nine [9] dishonored checks, are DISMISSED, without prejudice to their being taken up in a proper civil action for recovery of the amounts till due, if any, from Master Tours [&] Travel Corporation.
Costs against the accused.[13] (Emphasis in the original; underscoring supplied)
The petition is impressed with merit.A
. . . IN CONVICTING THE ACCUSED DESPITE THE FACT THAT HIS CRIMINAL LIABILITY WAS EXTINGUISHED BY HIS HAVING OVERPAID PCIB.B
. . . IN NOT FINDING THAT MASTER HAD FULLY PAID PCIB [AND] . . . IN NOT FINDING THAT MASTER, AS A MATTER OF FACT, HAD IN EFFECT, OVERPAID PCIB WHEN THE LATTER PULLED OUT THE BUSES SUBJECT OF THE TRUST RECEIPTS ISSUED IN CONNECTION WITH THE TRANSACTION.C
. . . IN NOT FINDING THAT THE CONTRACT DOCUMENTS DO NOT CONTAIN ANY STIPULATION AS TO ADJUSTMENT OF THE OBLIGATION IN CASE OF FOREIGN EXCHANGE FLUCTUATION. THERE IS NOTHING IN THE MEMORANDUM OF AGREEMENT BETWEEN THE PARTIES NOR IN THE LETTER OF CREDIT APPLICATION OR IN ANY DOCUMENT COVERING THE TRANSACTION WHEREIN MASTER TOURS OBLIGED ITSELF TO PAY AN INCREASE IN DOLLAR EXCHANGE RATE FLUCTUATION. CONVERSELY, NEITHER IS PCIB OBLIGED TO REFUND MASTER TOURS OF ANY DECREASE IN THE PESO DOLLAR EXCHANGE RATE.D
. . . IN NOT FINDING THAT EVEN ASSUMING MASTER WAS OBLIGED TO PAY FOREIGN EXCHANGE RATE DIFFERENTIAL, IT WAS PREMATURE TO DEMAND IT [ON] JANUARY 7, 1991.
x x x xF
. . . IN NOT FINDING THAT THE SUPERVENING BANKRUPTCY SUFFERED BY MASTER BROUGHT ABOUT BY THE ECONOMIC DISLOCATION OF THE COUNTRY BROUGHT ABOUT BY THE MOUNT PINATUBO ERUPTION, THE GULF WAR AND THE BAGUIO EARTHQUAKE DISCULPATES THE ACCUSED FROM CRIMINAL LIABILITY.[15] (Emphasis and underscoring supplied)
While issuing of a bouncing check is malum prohibitum, the prosecution is not excused from its responsibility of proving beyond reasonable doubt all the elements of the offense.[17]
- The accused makes, draws or issues any check to apply to account or for value;
- The accused knows at the time of the issuance that he or she does not have sufficient funds in, or credit with, the drawee bank for the payment of the check in full upon its presentment; and
- The check is subsequently dishonored by the drawee bank for insufficiency of funds or credit, or it would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment.[16] (Underscoring supplied)
Evidence of knowledge of insufficient funds.- The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within ninety (90) days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within five (5) banking days after receiving notice that such check has not been paid by the drawee.[20] (Emphasis and underscoring supplied)In order to create such presumption, it must be shown that the drawer or maker received a notice of dishonor and, within five banking days thereafter, failed to satisfy the amount of the check or arrange for its payment.[21] The above-quoted provision creates a presumption juris tantum that the second element prima facie exists when the first and third elements of the offense are present.[22]
The Bouncing Checks Law "was devised to safeguard the interest of the banking system and the legitimate public checking account user." It was not designed to favor or encourage those who seek to enrich themselves through manipulation and circumvention of the purpose of the law. x x xIn the present case, PCIB already exacted its proverbial pound of flesh by receiving and keeping in possession the four buses-trust properties surrendered by petitioner in about mid 1991 and March 1992 pursuant to Section 7 of the Trust Receipts Law,[34] the estimated value of which was "about P6.6 million."[35] It thus appears that the total amount of the dishonored checks - P1,785,855.75 -, the undisputed claim of petitioner of a mistaken agreement to pay the exchange differential (which the same checks represented) aside, was more than fully satisfied prior to the transmittal and receipt of the July 9, 1992 letter of demand. In keeping with jurisprudence, the Court then considers such payment of the dishonored checks to have obliterated the criminal liability of petitioner.[36]
x x x We cannot, under these circumstances, see how petitioner's conviction and sentence could be upheld without running afoul of basic principles of fairness and justice. For [private respondent] has, in our view, already exacted its proverbial pound of flesh through foreclosure and auction sale as its chosen remedy.[33] (Emphasis supplied)