GR 149858; (September 2007) (Digest)
G.R. No. 149858 ; September 5, 2007
FRANCISCO M. BAX, petitioner, vs. PEOPLE OF THE PHILIPPINES and ILYON INDUSTRIAL CORPORATION, respondents.
FACTS
Petitioner Francisco M. Bax, representing Vachman Industries, Inc., purchased caustic soda flakes from respondent Ilyon Industrial Corporation. In payment, Bax issued ten postdated checks. Upon presentment, all checks were dishonored by the drawee bank for insufficiency of funds. Consequently, ten Informations for violation of Batas Pambansa Bilang 22 (B.P. 22) were filed against Bax. The Metropolitan Trial Court convicted him on all counts. On appeal, the Regional Trial Court acquitted him in one case (where dishonor was due to a stop-payment order) but convicted him on the remaining nine counts, a decision affirmed by the Court of Appeals.
ISSUE
Whether the prosecution proved beyond reasonable doubt all elements of violation of B.P. 22, particularly the element of notice of dishonor.
RULING
The Supreme Court reversed the conviction and acquitted the petitioner. For a conviction under B.P. 22, the prosecution must prove: (1) the making, drawing, and issuance of any check; (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; 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 ordered the bank to stop payment. Crucially, the law creates a prima facie presumption of knowledge of insufficiency of funds if the drawer fails to pay the holder the amount of the check or make arrangements for its payment within five banking days after receiving notice of dishonor. The Court emphasized that this notice of dishonor must be in writing. Proof of receipt of such written notice is indispensable for the presumption to arise. The prosecution failed to present evidence that Bax received a written notice of dishonor for the nine checks. Without proof of this written notice, the crucial presumption of knowledge did not operate, and the element of knowledge of insufficiency of funds at the time of issuance was not proven beyond reasonable doubt. However, the acquittal does not extinguish civil liability. Bax was ordered to pay the face value of the nine dishonored checks, totaling P425,250.00, with 12% interest per annum from the filing of the Informations.