The Supreme Court, in Mejia v. People, affirmed that the issuance of a worthless check is a violation of Batas Pambansa Blg. 22 (B.P. 22), regardless of the intent or circumstances surrounding its issuance. The Court emphasized that the crucial element is the act of issuing a check that is subsequently dishonored due to insufficient funds or a closed account. This decision reinforces the strict liability imposed by B.P. 22, highlighting the importance of maintaining the integrity of checks as substitutes for currency in commercial transactions. It serves as a stern reminder to those issuing checks to ensure sufficient funds are available to cover the amount indicated, as failure to do so carries significant legal consequences.

The Bouncing Check: Loan Guarantee or Violation of B.P. 22?

The case revolves around Atty. Ismael F. Mejia, who was found guilty of violating B.P. 22 for issuing a check that was later dishonored. Rodolfo M. Bernardo, Jr., a client of Mejia, provided him with a blank check for real estate tax payments. Mejia encashed the check for P27,700, but only spent P17,700 on taxes, using the remaining P10,000 for his wife’s hospitalization, which both parties considered a loan. Subsequently, Mejia borrowed an additional P40,000 from Bernardo, issuing a P50,000 check and a promissory note to secure the total loan. The check, PNB Check No. 156919, was dishonored due to a closed account, leading to the filing of a B.P. 22 violation charge against Mejia.

The central legal question is whether the issuance of a check as a guarantee for a loan, which was subsequently dishonored due to a closed account, constitutes a violation of B.P. 22, irrespective of the original intent or agreement between the parties. The Regional Trial Court (RTC) found Mejia guilty, and the Court of Appeals (CA) affirmed the decision, leading to the present petition before the Supreme Court.

The Supreme Court, in resolving the issue, focused on the essential elements of a B.P. 22 violation. These elements are: (1) the making, drawing, and issuance of any check to apply for account or for value; (2) the knowledge of the maker, drawer, or issuer that at the time of issue there are no sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment; and (3) the subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit, or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment. The prosecution must prove each of these elements beyond reasonable doubt to secure a conviction.

In this case, the trial court found that Mejia issued the check as a guarantee for his loan from Bernardo, knowing that his account with PNB was already closed. When Bernardo deposited the check, it was dishonored due to the closed account, and Mejia was duly notified of the dishonor. He admitted receiving Bernardo’s demand letter but failed to make good on the check. These factual findings, affirmed by the Court of Appeals, were given great weight and respect by the Supreme Court, as there was no showing that the lower courts overlooked any facts or circumstances that could substantially affect the outcome of the case.

The Supreme Court reiterated that the essence of the offense under B.P. 22 is the issuance of a bad check, regardless of the purpose for which it was issued or any agreements surrounding its issuance. As stated in the case:

It must be emphasized that the gravamen of the offense charge is the issuance of a bad check. The purpose for which the check was issued, the terms and conditions relating to its issuance, or any agreement surrounding such issuance are irrelevant to the prosecution and conviction of petitioner.

This principle underscores the strict liability imposed by B.P. 22, emphasizing that the act of issuing a worthless check is malum prohibitum, meaning it is wrong because it is prohibited by law, irrespective of moral culpability or intent. To delve into the reasons for issuing checks or the terms and conditions attached would undermine the public’s faith in checks as reliable currency substitutes, disrupting trade and banking activities. As cited by the Court, “the clear intention of the framers of B.P. 22 is to make the mere act of issuing a worthless check malum prohibitum.”

The Court acknowledged Mejia’s plea for mercy and compassion, recognizing the personal hardships he had endured. However, it emphasized that the judiciary’s role is to apply the law, irrespective of personal feelings or sympathy for the accused. Relief, if any, must come from executive clemency or legislative amendment, not from judicial discretion.

The Supreme Court’s decision in this case reinforces the principle that B.P. 22 is a strict liability law, aimed at preserving the integrity of checks as a medium of exchange. This ruling has significant implications for individuals and businesses that use checks in their transactions. Issuers of checks must exercise due diligence to ensure they have sufficient funds in their accounts to cover the amounts indicated. Failure to do so can result in criminal prosecution, regardless of the intent or circumstances surrounding the issuance of the check.

The decision serves as a warning against the practice of issuing post-dated checks or checks as guarantees without ensuring sufficient funds are available upon presentment. It underscores the importance of responsible financial management and the need to honor one’s obligations promptly. The consequences of violating B.P. 22 can be severe, including fines and imprisonment, highlighting the need for caution and prudence in all check-related transactions.

FAQs

What was the key issue in this case?	The key issue was whether the issuance of a check as a guarantee for a loan, which was subsequently dishonored due to a closed account, constitutes a violation of B.P. 22. The Supreme Court affirmed that it does, regardless of the intent or agreement between the parties.
What is B.P. 22?	B.P. 22, also known as the Bouncing Checks Law, penalizes the act of making or issuing a check without sufficient funds to cover its amount upon presentment. It aims to maintain the integrity of checks as a medium of exchange in commercial transactions.
What are the elements of a B.P. 22 violation?	The elements are: (1) making, drawing, and issuing a check; (2) knowledge of insufficient funds at the time of issue; and (3) subsequent dishonor of the check by the bank due to insufficient funds or a closed account.
Is intent relevant in a B.P. 22 case?	No, intent is generally not relevant. B.P. 22 is a strict liability law, meaning the mere act of issuing a worthless check constitutes a violation, regardless of the issuer’s intent.
What is the meaning of malum prohibitum?	Malum prohibitum refers to an act that is wrong because it is prohibited by law, not necessarily because it is morally wrong. Issuing a worthless check falls under this category.
What was the Court’s ruling in this case?	The Supreme Court affirmed the conviction of Ismael F. Mejia for violating B.P. 22. The Court held that the issuance of a dishonored check, even if intended as a loan guarantee, constitutes a violation of the law.
Can a person be imprisoned for violating B.P. 22?	Yes, a person can face imprisonment for violating B.P. 22. The penalties typically include a fine, imprisonment, or both, depending on the specific circumstances of the case and the discretion of the court.
What should one do if they receive a dishonored check?	The recipient should promptly notify the issuer of the dishonor and demand payment. If the issuer fails to make good on the check, the recipient may consider filing a criminal complaint for violation of B.P. 22 or pursuing civil remedies to recover the amount owed.

The Mejia v. People case serves as a crucial reminder of the legal ramifications of issuing checks without sufficient funds. It reinforces the importance of financial responsibility and the need to maintain the integrity of checks in commercial transactions. The strict liability nature of B.P. 22 underscores that the act of issuing a worthless check is a serious offense, regardless of intent or circumstance.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: ISMAEL F. MEJIA, VS. PEOPLE, G.R. NO. 149937, June 21, 2007