Manuel Lim v CA

Facts:

Manuel Lim and Rosita Lim are the officers of the Rigi Bilt Industries, Inc. (RIGI). RIGI had been transacting business with Linton Commercial Company, Inc.  The Lims ordered 100 pieces of mild steel plates from Linton and were delivered to the Lim’s place of business which was in Caloocan. To pay Linton, the Lims issued a postdated check for P51,800.00. On a different date, the Lims also ordered another 65 pcs of mild steel plates and were delivered in the place of business. They again issued another postdated check. On that same day, they also ordered purlins worth P241,800 which were delivered to them on various dates. The Lims issued 7 checks for this.

When the 7 checks were presented to the drawee bank (Solidbank), it was dishonored because payment for the checks had been stopped and/or insufficiency of funds. So the Lims were charged with 7 counts of violation of Bouncing Checks Law.

The Malabon trial court held that the Lims were guilty of estafa and violation of BP 22. They went to CA on appeal.

The CA acquitted the Lims of estafa, on the ground that the checks were not made in payment of an obligation contracted at the time of their issuance. However, the CA affirmed the finding that they were guilty 

of violation for BP 22. Motion for Reconsideration to SC.

Issue:

Whether or not the issue was within the jurisdiction of the Malabon Trial Court

Held:

Yes. The venue of jurisdiction lies either in the RTC Caloocan or Malabon Trial Court.

BP 22 is a continuing crime. A person charged with a transitory crime may be validly tried in any municipality or territory where the offense was partly committed. In determining the proper venue, the ff. must be considered. 1) 7 checks were issued to Linton in its place of business in Navotas. 2) The checks were delivered Linton in the same place. 3) The checks were dishonored in Caloocan 4) The Lims had knowledge 

of their insufficiency of funds.

Under sec 191 of the Negotiable Instruments Law:

ISSUE = 1^ST delivery of the instrument complete in form to a person who takes it as a holder

HOLDER = payee or indorsee of a bill/note who is in possession of it or the bearer

The place where the bills were written, signed or dated does not necessarily fix or determine the place where they were executed. It is the delivery that is important. It is the final act essential to its consummation of an obligation. An undelivered bill is unoperative. The issuance and delivery of the check must be to a person who takes it as a holder.

Although Linton sent a collector who received the checks fr. The Lims at their place of business, the checks were actually issued and delivered to Linton in Navotas. The collector is not a holder or an agent, he was just an employee. 

*SC affirms conviction of the Lims for violation of BP 22 and the decision of CA