Chua vs. People (2017)

JOHN DENNIS G. CHUA vs. PEOPLE OF THE PHILIPPINES & CRISTINA YAO

G.R. No. 195248, November 22, 2017

MARTIRES, J.:

Facts: Sometime in the year 2000, petitioner's mother mentioned that her son would be reviving their sugar mill business and asked whether Yao could lend them money. Yao acceded and loaned petitioner ₱1 million on 3 January 2001; ₱1 million on 7 January 2001; and ₱l.5 million on 16 February 2001. She also lent petitioner an additional ₱2.5 million in June 2001. As payment petitioner issued four (4) checks in these amounts but which were dishonored for having been drawn against a closed account. Upon dishonor of the checks, Yao personally delivered her demand letter to the office of the petitioner which was received by his secretary. Petitioner was thus charged with four (4) counts of violation of B.P. Blg. 22.

Petitioner argued that the prosecution failed to prove actual receipt of the notice.

Issue: Whether or not petitioner is guilty of B.P.22.

Ruling: No. To be liable for violation of B.P. Big. 22, the following essential elements must be present: (1) the making, drawing, and issuance of any check to apply for account or for value; (2) the knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment; and (3) the subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.

The Court finds that the second element was not sufficiently established. Yao testified that the personal secretary of petitioner received the demand letter, yet, said personal secretary was never presented to testify whether she in fact handed the demand letter to petitioner who, from the onset, denies having received such letter. It must be borne in mind that it is not enough for the prosecution to prove that a notice of dishonor was sent to the accused. The prosecution must also prove actual receipt of said notice, because the fact of service provided for in the law is reckoned from receipt of such notice of dishonor by the accused.

Ratio Decidendi: The presumption that the issuer had knowledge of the insufficiency of funds is brought into existence only after it is proved that the issuer had received a notice of dishonor and that within five days from receipt thereof, he failed to pay the amount of the check or to make arrangement for its payment.

Gist: This is a petition for review on certiorari assailing the Orders of the RTC, which affirmed the Decision, finding petitioner guilty of four (4) counts of violation of Batas Pambansa Bilang 22 (B.P. Big. 22).