NEGOTIABLE INSTRUMENT

AY 18-19
ATTY. POLICARPIO

TIBAJIA, JR. vs. CA

G.R. No. 100290 | June 04 1993 |223 SCRA 163

SYLLABI:

Civil Law; Republic Act No. 529; Central Bank Act; Payment; A check is not legal tender and that
a creditor may validly refuse payment by check, whether it be a manager’s, cashier’s or personal
check.—From the aforequoted provisions of law, it is clear that this petition must fail. In the recent
cases of Philippine Airlines, Inc. vs. Court of Appeals and Roman Catholic Bishop of Malolos, Inc. vs.
Intermediate Appellate Court, this Court held that—“A check, whether a manager’s check or ordinary
check, is not legal tender, and an offer of a check in payment of a debt is not a valid tender of payment
and may be refused receipt by the obligee or creditor.” The ruling in these two (2) cases merely applies
the statutory provisions which lay down the rule that a check is not legal tender and that a creditor may
validly refuse payment by check, whether it be a managers check

FACTS:

- Edna Tan filed a suit for collection of money against the Tibajia Spouses. A writ of attachment
was issued on two separate dates. The Deputy sheriff filed a return stating that the deposit
made by petitioners for another case amounting to P442,750.00 had been garnished by him
- RTC Pasig on 10 March 1988 rendered a favorable decision to Edna Tan ordering Tibajia Sps. To
pay her 300k which was later reduced by appeal. Tan then filed a motion for execution on the
garnished fund which were on deposit with the cashier of the RTC of Pasig
- 14 Dec 1990 The spouses delivered to Deputy sheriff the amount of P398, 483.7 )cashier’s check
of 262k and cash for 133k)
- Tan refused to accept the payment made and insisted that the garnished funds be withdrawn to
satisfy the judgement obligation
- 15 Jan 1991 Tibajia Sps. Filed a motion to lift the writ of execution on the ground that the debt
was already paid which was later denied since cashiers check was not a payment in legal tender.

ISSUE:

- WON the cashiers check as payment of the debt legal tender? NO

- WON Tan may validly refuse the render of payment partly in check and partly in cash made thru
aurora vito and counsel for the satisfaction of the monetary obligation of the petitioner sps.?
YES

HELD:

- NO. A check even a cashiers check still not considered legal tender.
a. Article 1249. The payment of debts in money shall be made in the currency
stipulated, and if it is not possible to deliver such currency, then in the
currency which is legal tender in the Philippines.

ALGARME DIGEST
 NEGOTIABLE INSTRUMENT
AY 18-19
ATTY. POLICARPIO

The delivery of promissory notes payable to order, or bills of exchange or other

mercantile documents shall produce the effect of payment only when they have
been cashed, or when through the fault of the creditor they have been impaired.
In the meantime, the action derived from the original obligation shall be held in
abeyance.”;
b. In the recent cases of Philippine Airlines, Inc. vs. Court of Appeals 4 and
Roman Catholic Bishop of Malolos, Inc. vs. Intermediate Appellate Court,5
this Court held that—

“A check, whether a manager’s check or ordinary check, is not legal tender,

and an offer of a check in payment of a debt is not a valid tender of payment
and may be refused receipt by the obligee or creditor.”

c. In the recent cases of Philippine Airlines, Inc. vs. Court of Appeals 4 and
Roman Catholic Bishop of Malolos, Inc. vs. Intermediate Appellate Court,5
this Court held that—

“A check, whether a manager’s check or ordinary check, is not legal tender,

and an offer of a check in payment of a debt is not a valid tender of payment
and may be refused receipt by the obligee or creditor.” Tibajia, Jr. vs. Court
of Appeals, 223 SCRA 163, G.R. No. 100290 June 4, 1993

In the recent cases of Philippine Airlines, Inc. vs. Court of Appeals 4 and Roman Catholic Bishop of Malolos,
Inc. vs. Intermediate Appellate Court,5 this Court held that—

“A check, whether a manager’s check or ordinary check, is not legal tender, and
an offer of a check in payment of a debt is not a valid tender of payment and
may be refused receipt by the obligee or creditor.”

WHEREFORE, the petition is DENIED. The appealed decision is hereby AFFIRMED.

ALGARME DIGEST