G.R. No.

96132 June 26, 1992

ORIEL MAGNO, petitioner,
vs.
HONORABLE COURT OF APPEALS and PEOPLE OF THE PHILIPPINES, respondents.
PARAS, J.:
Facts:
Oriel Magno, lacking fund in acquiring complete set of equipment to make his car repair shop
operational, approached Corazon Teng, Vice President of Mancor Industries.
VP Teng referred Magno to LS Finance and Management Corporation, advising its Vice
President, Joey Gomez, that Mancor was willing to supply the pieces of equipment needed if LS
Finance could accommodate Magno and and provide him credit facilities.
The arrangement went on requiring Magno to pay 30% of the total amount of the equipment as
warranty deposit but Magno couldn't afford to pay so he requested VP Gomez to look for third
party who could lend him that amount.
Without Magno's knowledge, Corazon was the one who provided that amount.
As payment to the equipment, Magno issued six checks, two of them were cleared and the rest
had no sufficient fund.
Because of the unsuccessful venture, Magno failed to pay LS Finance which then pulled out the
equipment.
Magno was charged of violation of BP Blg. 2 (The Bouncing Checks Law) and found guilty.
Issue:
Whether or not Magno should be punished for the issuance of the checks in question.
Held:
No
Ratio:
To charge Magno for the refund of a warranty deposit which he did not withdraw as it was not
his own account, it having remained with LS Finance, is to even make him pay an unjust debt
since he did not receive the amount in question. All the while, said amount was in the
safekeeping of the financing company which is managed by the officials and employees of LS
Finance.