Republic of the Philippines

SUPREME COURT
Manila

THIRD DIVISION

G.R. No. 80130 August 19, 1991

BENJAMIN ABEJUELA, petitioner,

Vicente Y. Bayani for petitioner.

FERNAN, C.J.:

In this petition for review by certiorari, petitioner seeks a reversal of the decision of the Court of
Appeals dated September 16, 1987 which affirmed in toto the decision of the Regional Trial Court,
Branch VII of Palo, Leyte, dated January 11, 1984, convicting him as an accomplice in the complex
crime of estafa thru falsification of a commercial document under Article 315, paragraph 2 (a) of the
Revised Penal Code in relation to Article 172 thereof. 1

The facts of this case are uncontroverted.

Petitioner Benjamin Abejuela, a businessman engaged in the manufacture and fabrication of hand
tractors and other agricultural equipment, had a savings deposit with Banco Filipino, Tacloban
Branch. Sometime in April or May 1978, petitioner was befriended by Glicerio Balo, Jr., an employee
of Banco Filipino in the same Tacloban Branch. On several occasions, petitioner Abejuela and Balo
would dine together, go to nightclubs or have drinking sprees. 2 They became close friends. Balo
even became the godfather of Abejuela's daughter. 3 Moreover, Balo offered Abejuela financial
assistance in the latter's welding business, claiming that he was expecting a large sum of money out
of the insurance policy of his late father.

On August 3, 1978, Balo went to Abejuela's welding shop to borrow the latter's passbook. Abejuela
was surprised and thought that it was not possible for Balo to use his passbook. Balo showed
Abejuela some checks purporting to be the proceeds of his father's insurance policy. He wanted to
deposit the checks in Abejuela's account with Banco Filipino. Abejuela then suggested that Balo
open his own account. However, Balo explained that he was prohibited from opening an account
with Banco Filipino since he was employed with that bank as a savings bookkeeper. Abejuela
advised Balo to open an account instead with another bank but Balo insisted that he wanted the
checks deposited with Banco Filipino so that he could facilitate their immediate encashment as well
as avail himself of some privileges. Balo assured Abejuela that there was nothing wrong in allowing
him to use his passbook and even reassured Abejuela that he would accompany him to the bank to
make the deposit.
Accepting Balo's explanations and assurances Abejuela entrusted his passbook to Balo. On August
8,1978, Balo returned Abejuela's passbook where a deposit in the amount of P20,000.00 was
already reflected. Once again, Balo assured Abejuela that there was nothing wrong with the deposit,
and stated that he just deposited one of his checks. On the same, day Balo requested Abejuela
himself to withdraw, in the former's behalf, money from his account with Banco Filipino. Again with
assurances from Balo, Abejuela reluctantly agreed. He went to Banco Filipino and withdrew the
amount of P15,000.00 which he gave to Balo at a restaurant called Felisa's Cafe.

Balo's practice of depositing and withdrawing money using Abejuela's passbook continued for quite
some time. During the month of August 1978, the account of Abejuela with Banco Filipino reflected a
total deposits of P176,145.00 and a total withdrawal of P175,607.96.

In the meantime, Abejuela borrowed P20,000.00 from Balo, payable within 90 days from August 9,
1978. But feeling apprehensive over Balo's constant use of his passbook, Abejuela decided to pay
his loan on August 31, 1978 by borrowing P10,000.00 from his father and taking the other
P10,000.00 from his business profits.4 Abejuela also closed his account with Banco Filipino by
surrendering his passbook and withdrawing the balance of his deposit.

Thereafter, the bank's accountant and interest bookkeeper discovered a discrepancy between the
interest reconciliation balance and the subsidiary ledger balance. The interest bookkeeper could not
locate the posting reconciliation and the proof reconciliation. He also notice that Account No. 6701-
0160 in the name of Benjamin Abejuela reflected four (4) large deposits on various dates from
August 3, 1978 to August 23, 1978, totaling P176,145.25, but the deposits slips thereof could not be
located.

After further examination of the bank records, the manager, accountant and interest bookkeeper
were convinced that the irregularities were caused by Balo who was the savings bookkeeper at that
time and who had access to Abejuela savings account ledger. They concluded that Balo was able to
manipulate the ledger, by posting the fictitious deposits after banking hours when the posting
machine was already closed and cleared by the bank accountant.

The bank officials confronted Balo, who feigned ignorance and initially denied the accusations, but
later admitted having posted the false deposits. Petitioner Abejuela was also implicated because he
was the owner of the passbook used by Balo in accomplishing his fraudulent scheme. On December
5,1978, an information was filed against Glicerio Balo, Jr. and Benjamin Abejuela for the crime of
estafa thru falsification of commercial documents.5Separately arraigned, both pleaded "not guilt to
the crime charged6 Trial followed.

On May 29, 1979, acting on an application by Banco Filipino, the trial court issued an order of
preliminary attachment against all the properties of accused Glicerio Balo, Jr. and Benjamin
Abejuela not exceeding P176,145.25 in value, the amount allegedly embezzled or misappropriated.
On September 4,1979, the Deputy Sheriff of Palo, Leyte, filed a return of service and submitted an
inventory of the goods taken from the two accused and which goods were placed in the custody of
the National Bureau of Investigation. While the refrigerator and television set taken from the
residence of Abejuela would not command a good pace on account of their poor condition, the
goods seized from Balo were appraised at P62,295.00. 7

In the meantime, accused Glicerio Balo, Jr. was reportedly killed by members of the New People's
Army in the mountains of Mati Balangkayan Eastern Samar, on suspicion that he was a PC informer
and a collaborator. This information came from a rattan gatherer and former NPA member whose
testimony before the court a quo was never impeached. Consequently, on February 25, 1981, the
trial court dismissed the case against Glicerio Balo, Jr., pursuant to Article 89 of the Revised Penal
Code, but without prejudice to a civil action for recovery of damages arising from the offense which
may be instituted by Banco Filipino and without prejudice also to the reinstatement of the instant
criminal action in the event the accused would turn out to be alive.8 On September 7, 1981, Banco
Filipino filed a motion praying for the forfeiture in its favor of the goods seized from the accused
which were in the custody of the National Bureau of investigation. On November 5, 1981, the trial
court, thru District Judge Auxencio C. Dacuycuy, granted the motion and ordered the National
Bureau of Investigation to deliver the seized goods to Banco Filipino. In addition, the bank was
authorized to withdraw the savings deposit of Glicerio Balo, Jr. for eventual reversion to said bank. 9

Thereafter, trial continued with respect to petitioner Abejuela. On January 11, 1984, the lower court
adjudged petitioner Abejuela guilty. The dispositive portion of the decision reads:

WHEREFORE, the court finds the accused Benjamin Abejuela guilty beyond reasonable
doubt as accomplice of the complex crime of estafa thru falsification of a commercial
document under Art. 315, par. 2(a) of the Revised Penal Code in relation to Art. 172 thereof
and as the amount involved is more than P22,000 he is hereby sentenced to an
indeterminate penalty of not less than fifteen (15) years, three months and 11 days to not
more than sixteen (16) years, eight months and 21 days of reclusion temporal, to indemnify
Banco Filipino, Tacloban Branch, in the sum of One Hundred Seventy Six Thousand One
Hundred Forty Five Pesos and Twenty Five Centavos (P 176,145.25), without subsidiary
imprisonment in case of insolvency, and to pay one half of the costs.

On May 29, 1979, the court issued a writ of preliminary attachment of the properties of
defendants Glicerio Balo, Jr. and Benjamin Abejuela. This Attachment is hereby made
permanent.10

Abejuela appealed to the Court of Appeals. On September 16, 1987, the Appellate Court affirmed
the decision of the trial court.11 A motion for reconsideration filed by petitioner was denied in a
resolution dated October 7, 1987. Hence the instant appeal.

Petitioner Abejuela contends that the Appellate Court erred in not acquitting him for the following
reasons:

(1) Accused-petitioner has no knowledge of the criminal intent of his co-accused, Glicerio
Balo, Jr., hence, there being no conspiracy, be cannot be convicted as principal, neither as
accomplice, nor did he benefit from the effects of the crime, hence, he cannot be convicted
even as an accessory.

(2) The lending of the accused-petitioner of his passbook was made in good faith, and after
he was deceived by co-accused Glicerio Balo, Jr. that it is necessary because as employee
of Banco Filipino he cannot deposit in the said hank

(3) The presumption of innocence and the 'equipoise rule' apply in favor of accused-
petitioner.12

Respondents, in their comment, maintain that petitioner Abejuela had knowledge of the fraudulent
acts of Glicerio Balo, Jr. They asseverate that petitioner is an intelligent individual who can take care
of his concerns, considering that he is a businessman who finished third (3rd) year college
(commerce).13

Respondent also point out that Abejuela should not only have been convicted as an accomplice but
as a principal by indispensable cooperation, because without the withdrawal slips which he executed
allegedly in spite of his many doubts and apprehensions, Glicerio Balo, Jr. could not have
succeeded in his scheme.

Petitioner, on the other hand, claims that he had no knowledge at all of the fraudulent machinations
of Balo, and that his act of lending his passbook was done in good faith.

After carefully weighing the arguments of both parties as well as taking into consideration the
evidence on record, we are inclined to believe that petitioner Abejuela was completely unaware of
the malevolent scheme of Balo. From Balo's own admissions, it was he who deceived Abejuela
through sweet talk, assurances, drinking sprees and parties and cajoled him into giving in to his
requests. Furthermore, during that time, nobody would have questioned Balo's source of money and
since he had a perfect alibi, i.e. the insurance proceeds of his later father. When Balo showed
Abejuela some checks purporting to be his father's insurance proceeds, Abejuela was hoodwinked
into believing that Balo indeed had money. Balo's request to borrow Abejuela's passbook in order to
facilitate the encashment of the checks seemed reasonable enough, considering that they were
close friends and "compadres", Abejuela's acquiescence to Balo's overtures is understandable.

Furthermore, the court takes judicial notice of the practice of banks in allowing anybody to deposit in
an account even without the owner's passbook, as long as the account number is known. Thus,
even without Abejuela's passbook, the false deposits could still have been posted by Balo in the
savings account ledger of Abejuela. After all, the ledger is the record of the bank reflecting the
transactions of the depositor, while the passbook is the record of the depositor. More often than not,
it is the ledger which is more accurate and up-to-date. This is the reason why depositors have their
passbooks updated for unrecorded transactions like interests, checks deposited beyond clearance
cut-off time and bank charges.

In the instant case, the evidence of the prosecution clearly points at Balo as the one who had posted
the bogus deposits in Abejuela's ledger. He was also the one who wisely manipulated petitioner
Abejuela in order that the fictitious deposits could be placed at his Balo disposal, Thus, when Balo
requested Abejuela to withdraw the amount he had earlier placed in the latter's account, Abejuela
had no choice but to give in. He actually believed that the money was really owned by Balo and he
did not want Balo to think that he was interested in it. Thus, the prosecution miserably failed to prove
beyond reasonable doubt that Abejuela had knowledge of the fraudulent scheme of Balo. The most
that could be attributed to Abejuela was his negligence in lending his passbook and his utter
gullibility.

Knowledge of the criminal intent of the principal in this case, (Glicerio Balo, Jr.) is essential in order
that petitioner Abejuela can be convicted as an accomplice in the crime of estafa thru falsification of
commercial document. To be convicted as an accomplice, there must be cooperation in the
execution of the offense by previous or simultaneous acts. However, the cooperation which the law
punishes is the assistance rendered knowingly or intentionally, which assistance cannot be said to
exist without the prior cognizance of the offense intended to be committed.

In a number of cases decided by this Court, it has been held that knowledge of the criminal intention
of the principal is indispensable in order to hold a person liable as an accomplice. Thus:

It appearing that the accused who drove the taxicab in which the other accused rode did not
actually take part in the conspiracy to commit the crime of robbery but only furnished the
means through which the robbery could be perpetrated, with knowledge of the said criminal
design, he is not guilty as principal of the crime of robbery with homicide but is an
accomplice therein.14
 There is no evidence that appellant had conspired with the malefactors, nor that he actually
participated in the commission of the crime. He cannot, therefore, be considered as a
principal. But in going with them, knowing their criminal intention and in staying outside of the
house with them while the others went inside the store to rob and kill, appellant effectively
supplied the criminals with material and moral aid, making him guilty as an accomplice. 15

It is axiomatic that in criminal proceedings, proof beyond reasonable doubt is necessary before a
judgment of conviction can be rendered. Not an iota of doubt must cloud the Court's mind. A
1âwphi1

conviction of a criminal offense must be based on clear and positive evidence and not on mere
assumptions.16

In the light of the facts and the evidence on record, we believe that the guilt of petitioner Abejuela
has not been established beyond a reasonable doubt for which reason he must be acquitted. The
question that must be resolved now is the effect of Abejuela's acquittal on his civil liability.

The Rules provide: The extinction of the penal action does not carry with it extinction of the civil,
unless the extinction proceeds from a declaration in a final judgment that the fact from which the civil
might arise did not exist. In other cases, the person entitled to the civil action may institute it in the
jurisdiction and in the manner provided by law against the person who may be liable for restitution of
the thing and reparation or indemnity for the damage suffered."17

We decree the acquittal of Abejuela because we seriously doubt whether he had knowledge of the
plan of Balo to defraud Banco Filipino by means of posting false deposits and withdrawing these
later. Because of this doubt, however, his exoneration will not extinguish his civil liability. Thus, the
civil liability is not extinguished by acquittal where the same is based on reasonable doubt as only
preponderance of evidence is required in civil cases, or where the court has expressly declared that
the liability of the accused is not criminal but only civil in nature. 18

In Banal vs. Tadeo, Jr.,19 we declared:

.1s1

While an act or omission is felonious because it is punishable by law, it gives rise to civil
liability not so much because it is a crime but because it caused damage to another. Viewing
things pragmatically, we can readily see that what gives rise to the civil liability is really the
obligation and moral duty of everyone to repair or make whole the damage caused to
another by reason of s own act or omission, done intentionally or negligently, whether or not
the same be punishable by law.

It has been satisfactorily established that Banco Filipino suffered damage in the amount of
P176,145.25 representing the fictitious deposits posted by Glicerio Balo, Jr. and systematically
withdrawn through the passbook of petitioner Abejuela. Although Abejuela, was unaware of the
criminal workings in the mind of Balo, he nevertheless unwittingly contributed to their eventual
consummation by recklessly entrusting his passbook to Balo and by signing the withdrawal slips.
Abejuela failed to exercise prudence and care. Therefore, he must be held civilly accountable.

WHEREFORE, on reasonable doubt, Benjamin Abejuela is hereby ACQUITTED of the complex

Gutierrez, Jr. and Davide, Jr., JJ., concur.

Separate Opinions

FELICIANO, J., concurring and dissenting:

I quite agree with the holding of the Chief Justice's ponencia that Benjamin Abejuela must be held
civilly accountable and making permanent the writ of preliminary injunction issued by the trial court
against Abejuela's properties and those of his coaccused Glicerio Balo, Jr. to satisfy their civil
obligation in the amount of P 176,145.25.

At the same time, I submit, with respect, that Abejuela should not be completely exonerated of
criminal liability. The facts in this case appear so similar as to be practically on all fours with the facts
in Samson v. Court of Appeals (103 Phil. 277 [19581). In Samson, the Court held the accused guilty
of "estafa through falsification of commercial documents by reckless negligence." Two (2) out of ten
(10) members of the Court dissented: Reyes, J.B.L., J. and Concepcion, J. As far as I can
determine, however, Samson has not been overruled, expressly or impliedly. Upon the other hand,
the doctrine in Samson was explicitly followed in People v. Rodis, et al. (105 Phil. 1294 [1959]),
where the Court held that the accused could be held liable for the crime of "malversation of public
funds through falsification of a public document by reckless negligence." Much the same doctrine
has been applied in both earlier and subsequent cases: U.S. v. Malesa et al. (14 Phil. 468 [1909])
(Falsification of documents through reckless negligence); People v. Blancas (56 Phil. 801 [19311)
(Unpublished) (Falsification of public document through reckless negligence); People v.
Leopando (C.A.) 36 O.G. 2937 (1938) (Falsification of public document through reckless
negligence); Sarep v. Sandiganbayan (177 SCRA 440 [1989]) (Falsification of public document
through reckless imprudence).

Finally, it might be noted that the ponencia explicitly found Abejuela to have acted with reckless
negligence:

... although Abejuela was unaware of the criminal workings in the mind of Balo, he
nevertheless unwittingly contributed to their eventual consummation by recklessly entrusting
his passbook to Balo and by signing the withdrawal slips. Abejuela failed to exercise
prudence and care. Therefore, he must be held civilly accountable. (Emphasis supplied)

Footnotes

1
Criminal Case No. 3272.

2
TSN, p. 7, July 26, 1983.

3
TSN, p. 17, July 26, 1983; p. 5, August 17, 1983.
4
TSN, pp. 3-4, 6 and 24, July 26, 1983.

5
Original Record, pp. 1-10.

6
Ibid, pp. 94 and 106.

7
Original Record, pp. 287-288.

8
Original Record, pp. 235-236.

9
Original Record, pp. 296-302.

10
Original Record, pp. 480-481.

11
Rollo, pp. 118-125.

12
Rollo, p. 178.

13
Rollo, p. 134.

14
People vs. Lingad, 51 O.G. p. 6191; Emphasis supplied.

15
People vs. Balili, No. L-14044, August 5,1966,17 SCRA 892, 898; Emphasis supplied.

16
Gaerlan vs, Court of Appeals, et al. G.R. No. 57876, November 6, 1989, 179 SCRA 20.

17
Rule 111, Sec. 2 (c)

Padilla vs. Court of Appeals, No. L-39999, May 31, 1984, 129 SCRA 558, citing PNB vs.
18

Catipon, 98 Phil. 286 and De Guzman vs. Alvia, 96 Phil. 558.

19
G.R. Nos. 78911-25. December 11, 1987, 156 SCRA 325, 330.