Ang Tek Lian vs CA

G.R. No. L-2516

September 25, 1950

Facts:
Petitoner, Ang Tek Lian, knowing that he had no funds, issued a check upon the China
Banking Corporation payable to cash. He delivered the check to Lee Hua Hong and when
the latter presented it for payment, the check was dishonored for insufficiency of funds.
Hong then filed a complaint against the petitioner for estafa. On the other hand, Lian
averred that since the check was payable to cash and was not indorsed by him, he is,
therefore, not guilty of estafa. The CFI as well as the CA found the petitioner guilty for the
crime of estafa. Hence, this present petition.
Issue:
WON a bearer instrument needs to be indorsed.
Ruling:
No, the SC held that under the Negotiable Instruments Law (sec. 9 [d], 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. A check payable to
bearer is authority for payment to holder. Where a check is in the ordinary form, and is
payable to bearer, so that no indorsement is required, a bank, to which it is presented for
payment, need not have the holder identified, and is not negligent in falling to do so. . . .
(Michie on Banks and Banking, Permanent Edition, Vol. 5, p. 343.)