38

People vs Ong
204 SCRA 942

Facts:
Accused Dick Ong opened a saving saccount with Home Savings Bank and Trust
Company (HSBTC) with an initial deposit of P22.14 in cash and P10,000.00 in check. Ong was
allowed to withdraw from his savings account with the Bank the sum of P5,000.00, without his
check undergoing the usual and reglementary clearance. The withdrawal slip was signed and
approved by Lino Morfe, then the Branch Manager, and accused Lucila Talabis, the Branch
Cashier. Subsequently, Ong deposited eleven checks in his savings account with the Bank and
against which he made withdrawals against its amount. Again, the withdrawal of the amount by
Ong was made before said checks were cleared and the Bank had collected their amounts and
with the approval of Talabis. However, when the Bank presented the eleven checks issued,
deposited and against which Ong made withdrawals against its amounts, to their respective
drawee banks for payment, they were all dishonored for lack or insufficiency of funds. Because
of this, the Bank filed a criminal action for Estafa against Ong, and the Bank’s officer in charge
Villaran and Talabis.

Issue:
Whether or not Ong is guilty of estafa

Held:
No.

Ratio:
In the crime of Estafa by postdating or issuing a bad check, deceit and damage are
essential elements of the offense and have to be established with satisfactory proof to warrant
conviction. In the present case, the prosecution failed to prove that the accused-appellant had
such knowledge with respect to the subject checks that he indorsed.