Ang Tek Lian vs.

CA
Ang Tek Lian vs. Court of Appeals
L-2516 September, 1950
Bengzon, J.:

Facts:
Ang Tek Lian knowing that he had no funds therefor, drew a check upon China Banking
Corporation payable to the order of cash. He delivered it toLee Hua Hong in exchange for
money. The check was presented by Lee Hua hong to the drawee bank for payment, but it w3as
dishonored for insufficiency of funds. With this, Ang Tek Lian was convicted of estafa.

Issue:
Whether or not the check issued by Ang Tek Lian that is payable to the order to cash
and not have been indorsed by Ang Tek Lian, making him not guilty for the crime of estafa.

Held:
No.Under Sec. 9 of NIL a check drawn payable to the order of cash is a check payable
to bearer and the bank may pay it to the person presenting it for payment without the drawers
indorsement. However, if the bank is not sure of the bearers identity or financial solvency, it has
the right to demand identification or assurance against possible complication, such as forgery of
drawers signature, loss of the check by the rightful owner, raising of the amount payable, etc.
But where the bank is satisfied of the identity or economic standing of the bearer who tenders the
check for collection, it will pay the instrument without further question; and it would incur no
liability to the drawer in thus acting