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Jai-Alai Corporation v. BPI [G.R. No. L-29432. August 6, 1975]

30 Jul

FACTS

Petitioner deposited to respondent bank several checks acquired through forged indorsements. The respondent bank debited petitioner’s account.

 

ISSUE

Whether or not there exists creditor-debtor relationship between petitioner and respondent.

 

RULING

No. There was no creditor-debtor relationship created between the parties. When the petitioner deposited the checks with the respondent, the nature of the relationship created at that stage was one of agency, that is, the bank was to collect from the drawees of the checks the corresponding proceeds. The petitioner must in turn shoulder the loss of the amounts which the respondent; as its collecting agent, had to reimburse to the drawee-banks.

 

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