Mansion Biscuit Corp vs CA


MANSION BISCUIT CORPORATION, respresented by its president, ANG CHO HONG, petitioner, vs. COURT OF APPEALS, TY TECK SUAN substituted by his heirs, ROSENDA TY, ELIZABETH TY KOH, EDWARD TY, EDMUND TY, EDGAR TY, EVELYN T. LIM, EDWIN TY and EDISON TY, and SIY GUI, respondents. 


G.R. No. 94713 November 23, 1995


FACTS: Sometime in 1981, Ty Teck Suan, as president of Edward Ty Brothers Corporation, ordered numerous canons of nutria-wafer biscuits from Mansion Biscuit Corporation, before the delivery of the goods on November 12, 1981, Ty Teck Suan issued to Ang Cho Hong, president of Mansion Biscuit Corp., four postdated checks totaling P404,980.00 as payment for the nutria-wafer biscuits. Four other postdated checks in the amount of P100,000.00 each were issued by Ty Teck Suan with Siy Gui as Co-signor in December of the same year. Accordingly, Mansion Biscuit Corp. delivered the goods. When the first four checks were deposited, they were all dishonored due to insufficiency of funds. Ang Cho Hong informed Ty Teck Suan of the dishonor and requested him to replace the checks with good cash or good checks. Ty Teck Suan failed to heed said request. Subsequently, Ty Teck Suan delivered a total of 1,150 sacks of Australian flour to Mansion Biscuits plus cash advance by Suan and the amount paid was applied as payment for the first postdated check. Hong sent Suan a formal demand letter requesting the latter to make good the value of the remaining dishonored checks within five days from the receipt thereof. Thereafter, the second batch of checks were issued by Suan and Gui but were all dishonored again. Mansion Biscuit Corporation filed a case against Suan and Gui for violation of Batasang Pambansa Blg. 22 (Bouncing Checks Law)

ISSUE: Whether or not the contention of Ty Teck Suan that the subject checks were issued merely to guarantee or secure fulfillment of the agreement with the complaint.

HELD: The court concludes of the above-mentioned checks by the accused subject to these two criminal cases, and their subsequent dishonor, cannot be considered in violation of the Batasang Pambansa Blg.22 because one important element of the offense is missing: that the check is made or drawn and issued to apply on account or for value and because these were issued to guarantee the fulfillment of an agreement to deliver biscuits by complaint when accused Suan would place orders. Accused are hereby declared not guilty of the offense charged.


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