The Supreme Court held that the crime of falsification of a public document had already prescribed, thus reversing the conviction of the petitioners. The Court clarified that for falsification, the prescriptive period begins not from the discovery of the falsification, but from the date the falsified document is registered. This ruling underscores the importance of timely filing of complaints to ensure that legal remedies are not barred by prescription, reinforcing the principle that the state’s right to prosecute is not indefinite.

A Father’s Ghostly Signature: Can Time Erase Falsification?

This case revolves around siblings Shirley T. Lim, Mary T. Lim-Leon, and Jimmy T. Lim, officers of Pentel Merchandising Co., Inc. (Pentel). The charge? Falsifying a Secretary’s Certificate dated February 29, 2000, which contained Pentel Board Resolution 2000-001. This resolution authorized Jimmy to sell a Pentel property. The problem: Quintin C. Lim, the siblings’ father and a Pentel director, supposedly signed the resolution, despite having passed away in 1996. The central legal question is whether the crime of falsification had prescribed, barring prosecution despite the alleged forgery.

The petitioners were charged with falsification of a public document, specifically violating Article 172 in relation to Article 171 of the Revised Penal Code (RPC). The Information alleged that the petitioners conspired to falsify the Secretary’s Certificate and Board Resolution to facilitate the transfer of property. The prosecution argued that the petitioners counterfeited Quintin’s signature, making it appear as though he participated in the board meeting and approved the resolution, when he was already deceased. The petitioners contended that they were erroneously charged with falsifying a public document, arguing that the evidence pointed to the falsification of a private document (Board Resolution 2000-001), which requires proof of intent to cause damage, an element they claim was not established.

The Supreme Court clarified that the subject of falsification was indeed the Secretary’s Certificate, a notarized document, which qualifies as a public document under Section 19(b), Rule 132 of the Revised Rules on Evidence. This determination is crucial because the elements and penalties for falsification differ based on whether the document is public or private. The Court emphasized that the Secretary’s Certificate contained the resolution and the signatures of the board members, indicating the petitioners’ involvement in its execution. This finding upheld the charge of falsification of a public document, punishable under Article 172(1) of the RPC, which addresses falsification by a private individual of a public document.

Art. 172. Falsification by private individual and use of falsified documents. – The penalty of prision correccional in its medium and maximum periods and a fine of not more than P5,000 pesos shall be imposed upon:

1. Any private individual who shall commit any of the falsifications enumerated in the next preceding article in any public or official document or letter of exchange or any other kind of commercial document; x x x

A key point of contention was the prescription of the offense. The petitioners raised this defense for the first time on appeal to the Supreme Court, arguing that the crime should have been discovered either on March 21, 2000 (date of the Deed of Absolute Sale) or March 29, 2000 (date TCT No. 142595 was issued). Section 3(g), Rule 117 of the Rules of Criminal Procedure allows an accused to move for the quashal of the complaint on the ground that the criminal action or liability is extinguished. The Court, citing People v. Castro, affirmed that the defense of prescription could be raised at any stage of the proceedings, even if not initially asserted. This ruling is significant because it clarifies that the right to invoke prescription is not waived by a failure to raise it at the earliest opportunity.

The Court then examined when the prescriptive period began. Article 90 of the RPC states that the period for the prescription of offenses commences from the day on which the crime is discovered. However, in cases involving falsification of a public document, the Court referenced Cabral v. Hon. Puno, clarifying that the prescriptive period commences on the date of registration of the forged or falsified document. This is grounded in the principle that registration serves as constructive notice to the entire world.

The rule is well-established that registration in a public registry is a notice to the whole world. The record is constructive notice of its contents as well as all interests, legal and equitable, included therein.

The Court underscored that the act of registration serves as constructive notice, charging everyone with knowledge of the document’s contents. Furthermore, the Court explained that for corporations, the sale of real property requires a board resolution authorizing the transaction and designating an agent. The Secretary’s Certificate serves as evidence of this resolution. The Court emphasized that the falsified Secretary’s Certificate, attesting to Quintin’s participation, was essential for the validity of the sale and the subsequent transfer of title to the Spouses Lee. As the registration of the falsified Secretary’s Certificate occurred on March 29, 2000, the Court concluded that the prescriptive period began on that date.

Article 91 of the RPC stipulates that the period of prescription is interrupted by the filing of the complaint or information. While the exact date of the filing of Lucy’s Affidavit of Complaint was not available, the Court noted that the affidavit was executed on September 21, 2010, more than ten years after March 29, 2000. Thus, prescription had already set in before the complaint was even filed. Consequently, the Court ruled that by the time the criminal Information was filed on May 15, 2012, the petitioners’ criminal liability had been extinguished, warranting the dismissal of the case.

FAQs

What was the key issue in this case?	The key issue was whether the crime of falsification of a public document had prescribed, thus barring prosecution despite the alleged forgery.
When does the prescriptive period begin for falsification of a public document?	The prescriptive period begins on the date of registration of the forged or falsified document, not from the date of discovery of the falsification. This is because registration serves as constructive notice to the world.
Why was the Secretary’s Certificate considered a public document?	The Secretary’s Certificate was considered a public document because it was notarized, falling under the definition provided in Section 19(b), Rule 132 of the Revised Rules on Evidence.
Can the defense of prescription be raised at any stage of the proceedings?	Yes, the defense of prescription can be raised at any stage of the proceedings, even if it was not initially asserted in the lower courts. This is an exception to the general rule that defenses must be raised at the earliest opportunity.
What is the significance of constructive notice in this case?	Constructive notice means that the registration of a document serves as notice to the entire world of its contents. In this case, it means that the registration of the falsified Secretary’s Certificate started the running of the prescriptive period.
What role did the Secretary’s Certificate play in the property sale?	The Secretary’s Certificate was crucial as it served as evidence of the board resolution authorizing the sale of the corporation’s property and designating an agent. Without it, the sale would lack the necessary corporate authorization.
When was the registration of the falsified Secretary’s Certificate?	The registration of the falsified Secretary’s Certificate was on March 29, 2000, making this date the starting point for the prescriptive period.
Why was the case dismissed despite the finding of falsification?	The case was dismissed because the prescriptive period had lapsed before the complaint was filed. The State lost its right to prosecute and punish the petitioners due to the passage of time.

This case underscores the critical importance of timely legal action and the legal implications of constructive notice in property transactions. It serves as a reminder that delays in pursuing legal remedies can result in the loss of legal recourse, even in cases involving serious allegations such as falsification. The principle of prescription acts as a statute of repose, balancing the state’s interest in prosecuting crimes with the individual’s right to be free from indefinite threat of prosecution.

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: SHIRLEY T. LIM, ET AL. VS. PEOPLE, G.R. No. 226590, April 23, 2018