Scribd
Upload
97 views1 page

Ang Tek Lian Vs CA

Ang Tek Lian drew a check payable to "cash" even though he knew he lacked sufficient funds, and exchanged it for money from Lee Hua Hong. When the check was presented for payment, it was dishonored due to insufficient funds. Ang Tek Lian was convicted of estafa. The Court of Appeals held that under Section 9 of the Negotiable Instruments Law, a check payable to "cash" is a bearer instrument that the bank may pay to whoever presents it without the drawer's endorsement. However, the bank has the right to demand identification or assurance if unsure of the bearer's identity or financial solvency to prevent forgery or other complications.

Uploaded by

Ian Auro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
97 views1 page

Ang Tek Lian Vs CA

Ang Tek Lian drew a check payable to "cash" even though he knew he lacked sufficient funds, and exchanged it for money from Lee Hua Hong. When the check was presented for payment, it was dishonored due to insufficient funds. Ang Tek Lian was convicted of estafa. The Court of Appeals held that under Section 9 of the Negotiable Instruments Law, a check payable to "cash" is a bearer instrument that the bank may pay to whoever presents it without the drawer's endorsement. However, the bank has the right to demand identification or assurance if unsure of the bearer's identity or financial solvency to prevent forgery or other complications.

Uploaded by

Ian Auro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Ang Tek Lian vs.

CA
Ang Tek Lian vs. Court of Appeals
L-2516 September, 1950
Bengzon, J.:

Facts:
Ang Tek Lian knowing that he had no funds therefor, drew a check upon China Banking
Corporation payable to the order of cash. He delivered it toLee Hua Hong in exchange for
money. The check was presented by Lee Hua hong to the drawee bank for payment, but it w3as
dishonored for insufficiency of funds. With this, Ang Tek Lian was convicted of estafa.

Issue:
Whether or not the check issued by Ang Tek Lian that is payable to the order to cash
and not have been indorsed by Ang Tek Lian, making him not guilty for the crime of estafa.

Held:
No.Under Sec. 9 of 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 drawers
indorsement. However, if the bank is not sure of the bearers identity or financial solvency, it has
the right to demand identification or assurance against possible complication, such as forgery of
drawers signature, loss of the check by the rightful owner, raising of the amount payable, etc.
But where the bank is satisfied of the identity or economic standing of the bearer who tenders the
check for collection, it will pay the instrument without further question; and it would incur no
liability to the drawer in thus acting

You might also like