BENJAMIN ABUBAKAR, Petitioner, THE AUDITOR GENERAL, Respondent. G.R. No. L-1405 July 31, 1948
BENJAMIN ABUBAKAR, Petitioner, THE AUDITOR GENERAL, Respondent. G.R. No. L-1405 July 31, 1948
BENJAMIN ABUBAKAR, Petitioner, THE AUDITOR GENERAL, Respondent. G.R. No. L-1405 July 31, 1948
BENJAMIN ABUBAKAR, petitioner,
vs.
THE AUDITOR GENERAL, respondent.
Facts: The Auditor General refused to authorize the payment of treasury warrant no. A-2867376 for
P1,000 which was issued in favor of Placido S. Urbanes but is now in the hands of petitioner Benjamin
Abubakar. The Auditor General argued that first, the warrant does not come within the purview of RA
No. 80 (Item F-IV-8); and second, the requirements of his office had not been complied with. Since, the
Court deemed the first reason to be sufficiently valid, it no longer passed upon the second.
Issue: whether or not the auditor general erred in refusing to permit payment out of a particular
appropriation in item f-iv-8 of RA 80.
Held: No.
It was admitted that the warrant was originally made payable to placido s urbanes in his capacity as
disbursing officer of the food administration for “additional cash advance for food production campaign
in la union” Thus, it is apparent that the treasury warrant was issued in favor of a public officer or
employee but held in possession by a private individual. The Auditor General was correct in refusing to
authorize its redemption since RA 80 Item f-iv-8 provides for treasury warrants issued in favor of and
held in possession by private individuals. Since this warrant was not issued in favor of a private
individual, the rule cannot apply.
Moreover, petitioner cannot argue that he is a holder in good faith and is entitled to the rights and
privileges of a holder in due course, free from defenses because the treasury warrant in question is not
within the scope of the negotiable instruments law. The document bears on its face the words “payable
from appropriation for food administration” which is an order for payment out of a particular fund thus
making it not unconditional and therefore, not a negotiable instrument.
Issue: Whether or not the bill of lading should prevail over the lease contract for purposes of venue
Held: yes, the bill of lading should prevail over the lease contract simply because the former is a
subsequent covenant and shall, therefore, take precedence in determining the intent of the parties.
In determining which document should prevail, the real intent of the parties and/or characteristics of
the documents should be examined. A bill of lading serves three functions: (1) as receipt for goods; (2)
as contract of carriage; (3) as documentary title to the goods. Thus, Phoenix’s reliance on the bill of
lading to support its cause of action is well-taken.
Furthermore, respondent has the choice of venue of where to file its complaint for a sum of money and
damages against petitioner.
Issue: whether or not the certificates of deposit have already been paid by petitioner
Held: No. FEBTC failed to prove that it had already paid Estrella Querimit, the bearer and lawful holder
of the subject certificates of deposit. Evidence showed that the certificates are still in the possession of
respondent and have not been indorsed or delivered to FEBTC. As a rule, one who pleads payment has
the burden of proving it. Even where the plaintiff must allege non-payment, the general rule is that the
burden rests on the defendant to prove payment, rather than on the plaintiff to prove payment. The
debtor has the burden of showing with legal certainty that the obligation has been discharged by
payment.29cräläw
In this case, the certificates of deposit were clearly marked payable to bearer, which means, to [t]he
person in possession of an instrument, document of title or security payable to bearer or indorsed in
blank.30 Petitioner should not have paid respondents husband or any third party without requiring the
surrender of the certificates of deposit.virtualibräry