Bank of the Philippine Islands vs Court of Appeals and Edvin Reyes G.R. No. 116792, March 29, 1996 PUNO, J.: FACTS:
Private respondent has two joint AND/R acco!nt at the "an# o$ the Phi%ippine &s%ands '!(ao )hoppin* 'enter "ranch. ne was a joint acco!nt with his wi$e, )onia ). Re+es whi%e the other other joint joint acco!n acco!ntt was with with his *rand *randoth other, er, -eter -eteria ia M. ernan ernande de.. 0e re*!%a re*!%ar%+ r%+ deposited in this acoo!nt he aintained with his *randother, the .). reas!r+ 3arrants pa+a(%e to the order o$ -eteria as her onth%+ pension. n Dece(er 24, 1949, -eteria died witho!t noti$+in* the .). reas!r+ Departent. 3ith this, an ao!nt o$ 577. was sti%% sent to -eteria on 8an!ar+ 1, 199. n 8an!ar+ , -dvin deposited the said treas!r+ chec# to their joint savin*s acco!nt. n Marc March h 4, 199 199,, -dvi -dvin n c%os c%osed ed the the )a )avi vin* n*s s acco acco!n !ntt and and tran trans$ s$er erre red d its its $!nd $!nds s ao!ntin* to P1,112.91 to the joint savin*s acco!nt with his wi$e. 0owe 0oweve ver, r, on 8an! 8an!ar ar+ + 16, 16, the the .). .). rea reas! s!r+ r+ 3arr 3arran antt was was dish dishon onor ored ed as it was was disc discov over ered ed that that -et -eter eria ia ern ernan ande de died died thre three e da+s da+s prio priorr to its its iss! iss!an ance ce.. he he .). .). Departent o$ reas!r+ re:!ested the "an# o$ the Phi%ippine &s%ands $or re$!nd. pon ca%%in* the (an#, -dvin was in$ored that the treas!r+ chec# was the s!(ject o$ a c%ai (+ 'iti(an# NA, correspondent o$ petitioner (an#. 3hi%e he ass!red "P& that he wo!%d drop (+ to %oo# into the the a att tter er,, he a%so a%so ver( ver(a% a%%+ %+ a!th a!thor ori ied ed to de(i de(itt $ro $ro his his join jointt acco acco!n !ntt the the a ao! o!nt nt o$ P1,;;6. as stated in the dishonored d ishonored .). reas!r+ 3arrant. )!rprisin*%+, -dvin deanded $ro "P& the restit!tion o$ the de(ited ao!nt. 0e then $i%ed a s!it $or daa*es a*ainst the (an# (e$ore the Re*iona% ria% 'o!rt o$
3hether "P& has the %e*a% ri*ht to app%+ the deposit to the o!tstandin* o(%i*ation !nder the princip%e o$ =%e*a% copensation>. RULI!:
?es, the )!pree 'o!rt r!%ed that app%+in* %e*a% copensation is proper. 'opensation sha%% ta#e p%ace when two persons, in their own ri*ht, are creditors and de(tors o$ each other. Artic%e 129 o$ the 'ivi% 'ode provides that =when a%% the re:!isites entioned in Artic%e 1279 are present, copensation ta#es e$$ect (+ operation o$ %aw, and e@tin*!ishes (oth de(ts to the conc!rrent ao!nt, even tho!*h the creditors and de(tors are not aware o$ the copensation.> e*a% copensation operates even a*ainst the wi%% o$ the interested parties and even without the consent of them . )ince )ince this copens copensation ation ta#es ta#es p%ace ipso jure, its e$$ects arise on the the ver+ da+ on which which a%% its re:!isites conc!r. conc!r. 3hen !sed as a de$ense, it retroacts to the date when its re:!isites are $!%$i%%ed. Article 1279 states that in order that copensation a+ (e proper, it is necessar+B
C1 hat each one o$ the o(%i*ors (e (o!nd principa%%+, and that he (e at the sae tie a principa% creditor o$ the otherE
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C2 hat (oth de(ts consist in a s! o$ one+, or i$ the thin*s d!e are cons!a(%e, the+ (e o$ the sae #ind, and a%so o$ the sae :!a%it+ i$ the %atter has (een statedE C hat the two de(ts (e d!eE C hat the+ (e %i:!idated and deanda(%eE C; hat over neither o$ the there (e an+ retention or controvers+, coenced (+ third persons and co!nicated in d!e tie to the de(tor. he e%eents o$ %e*a% copensation are a%% present in the case at (ar. he o(%i*ors (o!nd principa%%+ are at the sae tie creditors o$ each other. Petitioner (an# stands as a de(tor o$ the private respondent, a depositor. At the sae tie, said (an# is the creditor o$ the private respondent with respect to the dishonored .). reas!r+ 3arrant which the %atter i%%e*a%%+ trans$erred to his joint acco!nt. he de(ts invo%ved consist o$ a s! o$ one+. he+ are d!e, %i:!idated, and deanda(%e. he+ are not c%aied (+ a third person.
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