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    New Pacific Timber & Supply Company, Inc. V Seneris

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    Celine Garcia
    This case involves a dispute over payment of a judgment obligation. New Pacific Timber & Supply Company was ordered to pay Seneris P54,500 plus interest and fees. When New Pacific failed to pay, a writ of execution was issued against its properties. Before the auction sale, New Pacific deposited a cashier's check for P50,000 and P13,130 in cash with the clerk of court, totaling P63,130 to satisfy the judgment. However, Seneris refused to accept the payment. The court ruled that the cashier's check, being certified funds, should be considered the equivalent of cash. Therefore, New Pacific had fully paid its obligation and Seneris had no valid reason to

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    New Pacific Timber & Supply Company, Inc. V Seneris

    Uploaded by

    Celine Garcia
    58 views2 pages
    This case involves a dispute over payment of a judgment obligation. New Pacific Timber & Supply Company was ordered to pay Seneris P54,500 plus interest and fees. When New Pacific failed to pay, a writ of execution was issued against its properties. Before the auction sale, New Pacific deposited a cashier's check for P50,000 and P13,130 in cash with the clerk of court, totaling P63,130 to satisfy the judgment. However, Seneris refused to accept the payment. The court ruled that the cashier's check, being certified funds, should be considered the equivalent of cash. Therefore, New Pacific had fully paid its obligation and Seneris had no valid reason to

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    This case involves a dispute over payment of a judgment obligation. New Pacific Timber & Supply Company was ordered to pay Seneris P54,500 plus interest and fees. When New Pacific failed to pay, a writ of execution was issued against its properties. Before the auction sale, New Pacific deposited a cashier's check for P50,000 and P13,130 in cash with the clerk of court, totaling P63,130 to satisfy the judgment. However, Seneris refused to accept the payment. The court ruled that the cashier's check, being certified funds, should be considered the equivalent of cash. Therefore, New Pacific had fully paid its obligation and Seneris had no valid reason to

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    58 views2 pages

    New Pacific Timber & Supply Company, Inc. V Seneris

    Uploaded by

    Celine Garcia
    This case involves a dispute over payment of a judgment obligation. New Pacific Timber & Supply Company was ordered to pay Seneris P54,500 plus interest and fees. When New Pacific failed to pay, a writ of execution was issued against its properties. Before the auction sale, New Pacific deposited a cashier's check for P50,000 and P13,130 in cash with the clerk of court, totaling P63,130 to satisfy the judgment. However, Seneris refused to accept the payment. The court ruled that the cashier's check, being certified funds, should be considered the equivalent of cash. Therefore, New Pacific had fully paid its obligation and Seneris had no valid reason to

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    © All Rights Reserved
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    NEW PACIFIC TIMBER & SUPPLY COMPANY, INC.

    v SENERIS
    G.R. No. L-41764 December 19, 1980  

    FACTS:  

    Respondent Judge rendered a compromise judgment based on the amicable


    settlement entered by the parties wherein petitioner will pay to private respondent
    P54, 500.00 at 6% interest per annum and P6, 000.00 as attorney's fee of which
    P5,000.00 has been paid. Upon failure of the petitioner to pay the judgment
    obligation, a writ of execution worth P63, 130.00 was issued levied on the personal
    properties of the petitioner. New Pacific Timber deposited with the Clerk of Court
    in his capacity as the Ex-Officio Sheriff P50, 000.00 in Cashier's Check of the
    Equitable Banking Corporation and P13, 130.00 in cash for a total of P63, 130.00,
    before the date of the auction sale. Private respondent refused to accept the check
    and the cash and requested for the auction sale to proceed. The properties were
    sold for P50, 000.00 to the highest bidder with a deficiency of P13, 130.00.  

    New Pacific Timber then filed an ex-parte motion for issuance of certificate of
    satisfaction of judgment which was denied by the respondent Judge. Hence this
    present petition, they alleged that the respondent Judge capriciously and
    whimsically abused his discretion in not granting the requested motion for the
    reason that the judgment obligation was fully satisfied before the auction sale with
    the deposit made by the petitioner to the Ex-Officio Sheriff.  

    The respondent Judge cited Article 1249 of the New Civil Code which provides
    that payments of debts shall be made in the currency which is the legal tender of
    the Philippines and Section 63 of the Central Bank Act which provides that checks
    representing deposit money do not have legal tender power, in upholding the
    refusal of the private respondent to accept the check. In sustaining the contention
    of the private respondent to refuse the acceptance of the cash, the respondent Judge
    cited Article 1248 of the New Civil Code which provides that creditor cannot be
    compelled to accept partial payment unless there is an express stipulation to the
    contrary.  

    ISSUE: Can the check be considered a valid payment of the judgment obligation?  

    RULING: YES. It is to be emphasized that it is a well-known and accepted


    practice in the business sector that a Cashier's Check is deemed cash. Moreover,
    since the check has been certified by the drawee bank, this certification implies
    that the check is sufficiently funded in the drawee bank and the funds will be
    applied whenever the check is presented for payment. The object of certifying a
    check is to enable the holder to use it as money. When the holder procures the
    check to be certified, it operates as an assignment of a part of the funds to the
    creditors. Hence, the exception provided in Section 63 of the Central Bank Act
    which states that checks which have been cleared and credited to the account of the
    creditor shall be equivalent to a delivery to the creditor in cash the amount equal to
    that which is credited to his account. The Cashier's Check and the cash are valid
    payment of the obligation of the petitioner. The private respondent has no valid
    reason to refuse the acceptance of the check and cash as full payment of the
    obligation.

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