G.R. No. L-6439, December 28, 1912
THE CITY OF MANILA, plaintiff-appellant, vs. THE WIDOW OF TAN-AUCO, defendant-appellee.

FACTS

The City of Manila sought to collect from the defendant the sum of P300, representing the second quarterly installment for a first-class wholesale liquor license issued to her for the year 1909. The defendant refused to pay, arguing that she had ceased operating the business before the start of the second quarter. The lower court ruled in favor of the defendant, absolving her from payment.

ISSUE

Whether a first-class wholesale liquor license, issued for one year, creates a single annual obligation to pay the full license fee, even if the business is discontinued before the license period expires.

RULING

Yes. The Supreme Court reversed the lower court’s decision. Under Act No. 59, as amended by Act No. 95, a first-class wholesale liquor license is issued for a period of one year upon payment of P1,200 in advance. The amendatory Act No. 95 merely provided an accommodation by allowing the licensee, at their election, to pay the total P1,200 in four quarterly installments. This did not alter the nature of the obligation, which remains a single, indivisible obligation to pay the full annual fee for the one-year license period. Therefore, the defendant is liable for the unpaid quarterly installment despite having ceased business operations. The Court ordered the defendant to pay the City of Manila the sum of P300 with legal interest from April 1, 1909.