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  • 87 Scra 383

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    colleen
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    Ang Tek Lian drew a check payable to "cash" knowing he had no funds, in exchange for money, and was found guilty of estafa. He argued on appeal that indorsement was necessary since the check was not indorsed by him. The Supreme Court ruled that under the Negotiable Instruments Law, a check payable to "cash" is payable to bearer so the bank can pay it without the drawer's indorsement. Since "cash" is not a person, no indorsement is required to negotiate the check. The conviction was upheld.

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    Ang Tek Lian drew a check payable to "cash" knowing he had no funds, in exchange for money, and was found guilty of estafa. He argued on appeal that indorsement was necessary since the check was not indorsed by him. The Supreme Court ruled that under the Negotiable Instruments Law, a check payable to "cash" is payable to bearer so the bank can pay it without the drawer's indorsement. Since "cash" is not a person, no indorsement is required to negotiate the check. The conviction was upheld.

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    5 views1 page

    87 Scra 383

    Uploaded by

    colleen
    Ang Tek Lian drew a check payable to "cash" knowing he had no funds, in exchange for money, and was found guilty of estafa. He argued on appeal that indorsement was necessary since the check was not indorsed by him. The Supreme Court ruled that under the Negotiable Instruments Law, a check payable to "cash" is payable to bearer so the bank can pay it without the drawer's indorsement. Since "cash" is not a person, no indorsement is required to negotiate the check. The conviction was upheld.

    Copyright:

    © All Rights Reserved
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    Ang Tek Lian vs CA

    87 SCRA 383

    FACTS: Ang Tek Lien drew a check payable to the order of “cash” knowing that he had no funds. He
    delivered it in exchange of money. He was found guilty of estafa, but petitioner argued that the check
    had not been indorsed by him, hence, he should not be held guilty thereof.

    ISSUE: Whether indorsement is necessary to negotiate a check payable to the order of “cash”.

    RULING: Under the Negotiable Instruments Law, a check drawn payable to the order of "cash" is a
    check payable to bearer, and the bank may pay it to the person presenting it for payment without the
    drawer's indorsement.

    Where a check is made payable to the order of 'cash', the word cash 'does not purport to be the name
    of any person', and hence the instrument is payable to bearer. The drawee bank need not obtain any
    indorsement of the check, but may pay it to the person presenting it without any indorsement.

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