Ang Tek Lian vs CA

Ang Tek Lian vs. Court of Appeals

G.R. No. L-2516 September 25, 1950

--payable to bearer

FACTS:

Petitioner drew a check payable to "cash"knowing that he had no funds in his account.  He delivered said check to Hong for which the latter handed him money.  When the check was presented for payment it was dishonored for insufficiency of funds.  An information for the crime of estafa was filed against Ang Tek Lian.  Petitioner however argues that he is not guilty of the offense charged because he did not endorse the check which was made payable to "cash".

ISSUE:

Whether a check payable to "cash" requires an indorsement by the drawer for it to be encashed.

RULING:

No.  Under Section 9(d) of the NIL, 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.