Article 1243.

Payment made to the creditor by the debtor after the latter has been
judicially ordered to retain the debt shall not be valid.
Ang pagbayad ng nangutang sa nagpautang pagkatapos ang nangutang ay nauatusan ng
hukuman na ipapanatili ang utang ay walang bisa.
Instances
1. Garnishment- The proceeding by which a debtor’s creditor is subjected to the payment of
his own debt to another.
Examples

1.  Janine owes Richard P1,000, 000.00. Richard, in turn, owes Leo P100,000.00. Leo
brings an action against Richard, who claims insolvency but admits the credit which he
has over Janine. Before Janine pays Richard, Janine is summoned into the proceeding,
and asked to retain the debt in the meantime. Thus, the debt is “garnished”. The reason is
Janine should not pay Richard, and instead she should pay Leo, should Leo really be
adjudged the creditor of Richard in the meantime is considered invalid under the law.
2. Suppose in the preceding example, Janine and Richard, in the meantime, deposited the
judicial order to the contrary and supposing it should turn out that Leo is not really the
creditor of Richard as a consequence of which the garnishment proceedings are dropped,
should Janine again pay Richard, in view of the fact that the first payment is not valid
under the law?
Janine does not need to pay Richard a second time. At the beginning, the payment was not
valid, but the defect here has been cured by the dismissal of the garnishment proceedings.. It
is as if there never had been any judicial order asking Janine to retain the debt. Moreover,
why should Richard, the creditor, be paid twice for the same debt? To hold that he should be
is to allow a travesty of justice, an undue enrichment of Richard.

 Pending garnishment, may the debtor be judicially ordered to pay the creditor of another?
No, because under the Rules of Court, the credit must be given to the clerk, sheriff, or other
proper officer of the court. (Section 8, Rule 57, Revised Rules of Court)

 Interpleader- It is a technical name of the action in which a certain person in possession

of certain property wants claimants to litigate among themselves for the same. (Rule 63,
Section 1)
Mario has in his possession some merchandise, to be delivered to the person who presents the
proper receipt. Ernie and Fely, each has receipt, ask Mario to turn over the property to one of
them. An examination of the receipts reveals that they are of exactly the same kind. Mario
does not know to whom he should deliver the property. So he files an action in court by
means of which Ernie and Fely will be able to settle their conflicting rights. He court then
issued an order prohibiting payment to either Ernie or Fely in the meantime. Despite the
receipt of the order, Mario paid Ernie who is the brother of the latter’s sweetheart. Is said
payment valid?

No. the payment here was made after the debtor had been judicially ordered to retain the debt.
Evidently, Mario cannot say he paid Ernie in good faith. He had ulterior motives for his act,
otherwise he would not have disobeyed the lawful order of the court. Under the law,
therefore, Mario is deemed to be a payor in bad faith.

 Injunction-an order of the court directing a person not to do certain things.

Example: Ferlyn owes Leah a sum of money. When Ferlyn is about to pay leah, the relatives
of the latter move to stop the payment on the ground that Leah appears to be insane.
However, proceedings in court to determine Leah’s sanity are still in progress. Seeing
Ferlyn’s determination to pay, the relatives of Leah ask the court for a writ of preliminary
injunction restraining  Ferlyn from paying Leah in the meantime. Would it be advisable to
pay Leah despite said injunction?

Answer: No, it would not be advisable for Ferlyn to pay while she is under injunction;
otherwise, her payment would not be valid since this would then be payment made to the
creditor by the debt after the latter has been judicially ordered to retain the debt.

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Published by 0523j
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