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BATAAN CIGAR v. CA

This case has been cited 3 times or more.

	GR No. 208321 2014-07-30	WESLEYAN UNIVERSITY-PHILIPPINES v. NOWELLA REYES VELASCO JR., J.
Jurisprudence has pronounced that the crossing of a check means that the check may not be encashed but only deposited in the bank.[29] As Treasurer, respondent knew or is at least expected to be aware of and abide by this basic banking practice and commercial custom. Clearly, the issuance of a crossed check reflects management's intention to safeguard the funds covered thereby, its special instruction to have the same deposited to another account and its restriction on its encashment.
	GR No. 168842 2010-08-11	VICENTE GO v. METROPOLITAN BANK NACHURA, J.
A check is a bill of exchange drawn on a bank payable on demand.[17] There are different kinds of checks. In this case, crossed checks are the subject of the controversy. A crossed check is one where two parallel lines are drawn across its face or across the corner thereof. It may be crossed generally or specially.[18]
	GR No. 132403 & 132419 2007-09-28	HI-CEMENT CORPORATION v. INSULAR BANK OF ASIA CORONA, J.
In Bataan Cigar and Cigarette Factory, Inc. (BCCF) v. CA,[24] we held that the holder of crossed checks was not a holder in due course. There, the drawer (BCCF) issued postdated crossed checks in favor of one of its suppliers (George King) who promised to deliver bales of tobacco leaf but failed. George King, however, sold the checks on discount to State Investment House, Inc. (SIHI) and upon the latter's presentment to the drawee bank, BCCF ordered a "stop payment." Thereafter, SIHI filed a collection case against it. In ruling that SIHI was not a holder in due course, we explained:In order to preserve the credit worthiness of checks, jurisprudence has pronounced that crossing of a check should have the following effects: (a) the check may not be encashed but only deposited in the bank; (b) the check may be negotiated only once to one who has an account with a bank [and]; (c) the act of crossing the checks serves as warning to the holder that the check has been issued for a definite purpose so that he must inquire if he has received the check pursuant to that purpose, otherwise, he is not a holder in due course.