Ang Tek Lian v.

Court of Appeals
87 Phil 383
Bengzon, J.

Facts:
Petitioner Ang Tek Lian drew a check against China Banking Corporation on Nov. 16,
1946 knowing he had no funds therefor. The check was for the amount of P4000 payable to the
order of “CASH”. He delivered it to Lee Hua Hong in exchange which the latter handed in the
act. When Lee presented it for payment to the drawee bank, it was dishonored for insufficiency
of funds, the balance of the deposit of Ang Tek Lian being P335.00 only. Lee failed to notify Ang
of the dishonor for the latter was nowhere to be found. As a result, Lee instituted a complaint for
estafa against Ang Tek Lian. Ang contends that he is not guilty of the crime of estafa for he did
not indorse the check. Ang was convicted by the CFI; this decision was affirmed by the Court of
Appeals.

Issue:
Whether an indorsement of Ang os necessary to hold him liable for the crime of estafa.

Held:
NO. A check drawn to the order of “cash” is payable to bearer, and the bank may pay
it to the person presenting it for payment without the drawer’s indorsement. Of course, if
the bank is not sure of the bearer’s identity or financial solvency, it has the right to demand
for identification and/or
assurance against possible complications—for instance, forgery of the drawer’s signature,
loss of the check by the rightful owner, raising the amount payable, etc. The bank
therefore, requires for its protection that the indorsement of the drawer—or some other
persons known to it—be obtained. A check payable to bearer is authority for payment
to the holder. Where a check is in the ordinary form and is payable to bearer so that no
indorsement is required, a bank to which it is presented for payment need not have the
holder identified, and is not negligent in failing to do so.