G.R. No. L-55079 November 19, 1982
Lessons Applicable: Alteration (Negotiable Instruments Law)
Lessons Applicable: Alteration (Negotiable Instruments Law)
FACTS:
- August 25, 1964: Check dated July 8, 1964 for P50,000.00, payable to CASH, drawn by Joaquin Cunanan & Company on First National City Bank (FNCB) was deposited with Metropolitan Bank and Trust Company (Metro Bank) by Salvador Sales.
- Earlier that day, Sales had opened a current account with Metro Bank depositing P500.00 in cash
- Metro Bank immediately sent the cash check to the Clearing House of the Central Bank with the following words stamped at the back of the check:
- Metropolitan Bank and Trust Company Cleared (illegible) office All prior endorsements and/or Lack of endorsements Guaranteed.
- The check was cleared the same day. Private respondent paid petitioner through clearing the amount of P50,000.00, and Sales was credited with the said amount in his deposit with Metro Bank.
- August 26, 1964: Sales made his 1st withdrawal of P480.00 from his current account
- August 28, 1964: he withdrew P32,100.00
- August 31, 1964: he withdrew the balance of P17,920 and closed his account with Metro Bank
- September 3, 1964: FNCB returned cancelled Check to drawer Joaquin Cunanan & Company, together with the monthly statement of the company's account with FNCB.
- notified FNCB that the check had been altered
- actual amount of P50.00 was raised to P50,000.00
- name of the payee, Manila Polo Club, was superimposed the word CASH.
- September 10, 1964: FNCB wrote Metro Bank asking for reimbursement
- June 29, 1965: FNCB filed for recovery
- CA affirmed Trial Court: Metro Bank to reimburse FNCB
ISSUE: W/N Metrobank should reimsburse FNCB for the altered amount as indorser
HELD: NO. FNCB liable.
- Under the procedure prescribed, the drawee bank receiving the check for clearing from the Central Bank Clearing House must return the check to the collecting bank within the 24-hour period if the check is defective for any reason. - FNCB failed to do so
- indorsement must be read together with the 24-hour regulation on clearing House Operations of the Central Bank
- Metro Bank can not be held liable for the payment of the altered check.
- Moreover, FNCB did not deny the allegation of Metro Bank that before it allowed the withdrawal of the balance of P17,920.00 by Salvador Sales, Metro Bank withheld payment and first verified, through its Assistant Cashier Federico Uy, the regularity and genuineness of the check deposit from Marcelo Mirasol, Department Officer of FNCB, because its (Metro Bank) attention was called by the fast movement of the account