Waterworks v. Court Of Appeals

JR., J.:

This petition for review asks us to set aside the October 29, 1982 decision of the respondent Court of Appeals, now Intermediate Appellate Court which reversed the decision of the Court of First Instance of Manila, Branch XL, and dismissed the plaintiff's complaint, the third party complaint, as well as the defendant's counterclaim. The background facts which led to the filing of the instant petition are summarized in the decision of the respondent Court of Appeals: Metropolitan Waterworks and Sewerage System (hereinafter referred to as MWSS) is a government owned and controlled corporation created under Republic Act No. 6234 as the successor-in- interest of the defunct NWSA. The Philippine National Bank (PNB for short), on the other hand, is the depository bank of MWSS and its predecessor-in-interest NWSA.

Among the several accounts of NWSA with PNB is NWSA Account No. 6, otherwise known as Account No. 381-777 and which is presently allocated No. 010-500281. The authorized signature for said Account No. 6 were those of MWSS treasurer Jose Sanchez, its auditor Pedro Aguilar, and its acting General Manager Victor L. Recio. Their respective specimen signatures were submitted by the MWSS to and on file with the PNB.

By special arrangement with the PNB, the MWSS used personalized checks in drawing from this account. These checks were printed for MWSS by its printer, F. Mesina Enterprises, located at 1775 Rizal Extension, Caloocan City. During the months of March, April and May 1969, twenty-three (23) checks were prepared, processed, issued and released by NWSA, all of which were paid and cleared by PNB and debited by PNB against NWSA Account No. 6, to wit: Check No. Date Payee Amount Date Paid By PNB 1.

59546 8-21-69 Deogracias Estrella P 3,187.79 4-2-69 2. 59548 3-31-69 Natividad Rosario 2,848.86 4-23-69 3. 59547 3-31-69 Pangilinan Enterprises 195.00 Unreleased 4.

59549 3-31-69 Natividad Rosario 3,239.88 4-23-69 5. 59552 4-1-69 Villarama & Sons 987.59 5-6-69 6. 59554 4-1-69 Gascom Engineering 6,057.60 4-16-69 7.

59558 4-2-69 The Evening News 112.00 Unreleased 8. 59544 3-27-69 Progressive Const. 18,391.20 4-18-69 9.

59564 4-2-69 Ind. Insp. Int.

Inc. 594.06 4-18-69 10. 59568 4-7-69 Roberto Marsan 800.00 4-22-69 11. 59570 4-7-69 Paz Andres 200.00 4-22-69 12.

59574 4-8-69 Florentino Santos 100,000.00 4-11-69 13. 59578 4-8-69 Mla. Daily Bulletin 95.00 Unreleased 14.

59580 4-8-69 Phil. Herald 100.00 5-9-69 15. 59582 4-8-69 Galauran & Pilar 7,729.09 5-6-69 16. 59581 4-8-69 Manila Chronicle 110.00 5-12-69 17.

59588 4-8-69 Treago Tunnel 21,583.00 4-11-69 18. 59587 4-8-69 Delfin Santiago 120,000.00 4-11-69 19. 59589 4-10-69 Deogracias Estrella 1,257.49 4-16-69 20.

59594 4-14-69 Philam Accident Inc. 33.03 4-29-69 21. 59577 4-8-69 Esla 9,429.78 4-29-69 22. 59601 4-16-69 Justino Torres 20,000.00 4-18-69 23.

59595 4-14-69 Neris Phil. Inc. 4,274.00 5-20-69