Abubakar v Auditor General; G.R. No. L-1405; 31 Jul 1948; 81 Phil 359

FACTS:
A treasury warrant was issued in favor of Placido Urbanes in his capacity as disbursing officer of the Food Administration. He later indorsed it to petitioner, Benjamin Abubakar, a private citizen. The Auditor General refused to authorize the payment of said treasury warrant.

ISSUE(S):
Whether or not the subject treasury warrant is a negotiable instrument.

RULING:
NO. This treasury warrant is not within the scope of the negotiable instrument law. The document bearing on its face the words “payable from the appropriation for food administration,” is actually an order for payment out of “a particular fund,” and is not unconditional and does not fulfill one of the essential requirements of a negotiable instrument.

PERTINENT PROVISION(S):
NIL, Section 3, last sentence: But an order or promise to pay out of a particular fund is not unconditional.

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Category: Legal Chyme

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