Norberto Tibajia Jr. amd Carmen Tibajia v. Court of Appeals and Eden Tan G.R. No. 100290; June 4, 1993
Facts:
Eden Tan acquired a favorable judgment against spouses Tibajia in a collection suit. To satisfy the judgment debt, the spouses Tibajia delivered cash and cashier's check to the Deputy Sheriff.
Eden Tan refused to accept the payment made by the spouses Tibajia. She insisted that the garnished funds be deposited with the cashier of the RTC to be withdrawn as satisfaction of the judgment debt.
The spouses Tibajia filed a motion to lift the execution order on the ground that they had already paid the judgment debt. Their motion was denied by the RTC on the ground thjat the check is not a payment in legal tender. The CA affirmed the RTC's decision. Hence, this petition for review.
Issue:
Whether or not payment by means of a check is considered as payment in legal tender as required by the Civil Code and the Central Bank Act
Held:
No. A check, whether a manager's check or an ordinary check, is not a legal tender and an offer of a check in payment of a debt is not a valid tender of payment and may be refused receipt by the obligee.
Checks representing payment though deposit money do not have legal tender power and their acceptance in the payment of debts both public and private, is at the option of the obligee. Provided, however, that a check which has been cleared and credited to the account of the creditor shall be equivalent to a delivery to the obligee of cash in an amount equal to the amount credited to the obligee's account.
Full Text
MM's note: In Negotiable Instruments Law, a cashier's check and a manager's check is as good as cash. However, being "good as cash" does not equate to having legal tender power which can only be produced by actual legal tender/money. What differentiates money from check is that the former has legal tender power or a compulsory character in extinguishing debts, i.e. the obligee cannot refuse to receive the money as satisfaction of the debt if the same was made in the proper manner and amount, otherwise the obligee would be guilty of mora accipendi.
Eden Tan acquired a favorable judgment against spouses Tibajia in a collection suit. To satisfy the judgment debt, the spouses Tibajia delivered cash and cashier's check to the Deputy Sheriff.
Eden Tan refused to accept the payment made by the spouses Tibajia. She insisted that the garnished funds be deposited with the cashier of the RTC to be withdrawn as satisfaction of the judgment debt.
The spouses Tibajia filed a motion to lift the execution order on the ground that they had already paid the judgment debt. Their motion was denied by the RTC on the ground thjat the check is not a payment in legal tender. The CA affirmed the RTC's decision. Hence, this petition for review.
Issue:
Whether or not payment by means of a check is considered as payment in legal tender as required by the Civil Code and the Central Bank Act
Held:
No. A check, whether a manager's check or an ordinary check, is not a legal tender and an offer of a check in payment of a debt is not a valid tender of payment and may be refused receipt by the obligee.
Checks representing payment though deposit money do not have legal tender power and their acceptance in the payment of debts both public and private, is at the option of the obligee. Provided, however, that a check which has been cleared and credited to the account of the creditor shall be equivalent to a delivery to the obligee of cash in an amount equal to the amount credited to the obligee's account.
Full Text
MM's note: In Negotiable Instruments Law, a cashier's check and a manager's check is as good as cash. However, being "good as cash" does not equate to having legal tender power which can only be produced by actual legal tender/money. What differentiates money from check is that the former has legal tender power or a compulsory character in extinguishing debts, i.e. the obligee cannot refuse to receive the money as satisfaction of the debt if the same was made in the proper manner and amount, otherwise the obligee would be guilty of mora accipendi.
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