7.

Metropolitan Bank and Trust Company v Tonda

FACTS: Sps Tonda applied for and was granted a commercial LC between Metrobank in connection
with the importation of raw textile material to be used in the manufacturing of garments. The
Tondas acted in their capacity as officers of HTAC (Honey Tree Apparel Corp) and in their personal
capacity, executed 2 Trust receipt to secure the release of raw materials. They failed to settle
obligation and Metrobank filed a complaint against them for violation of PD 115 with the provincial
prosecutor of Rizal. Provincial Prosecutor recommended the dismissal of the complaint. Metrobank
appealed to Department of Justice and reversed the findings ordered for the filing of appropriate
information against Tondas. The Court of appeals filed special civil action for certiorari and
prohibition and granted TONDAS application and dismissed. They failed to show a prima facie case.

ISSUE: Whether or not the dismissal by CA of the charge for violation of PD 115 in relatioin to article
315 of the Revised Penal Code against the TONDAS is warranted by the evidence at hand and by law.

HELD: The receipt of the bank of a sum of money without reference to the trust receipt obligation
does not obligate the bank to apply the money received against the trust receipt obligation. Neither
does compensation arise because compensation is not proper when one of the debts consists in civil
liability arising from a criminal offense. The mere failure to deliver the proceeds of the sale or the
goods. If not sold, constitute the criminal offense that cause prejudice not only to another but more
to the public interest.