MWSS V.

CA

143 SCRA 20

FACTS:

MWSS had an account from PNB. Its treasurer, auditor, and General Manager
are the ones authorized to sign checks. During a period of time, 23 checks were
drawn and debited against the account of petitioner. Bearing the same check
numbers, the amounts stated therein were again
debited from the account of petitioner. The amounts drawn were deposited in the
accounts of the payees in PCIB. It was found out though that the names stated in
the drawn checks were all fictitious. Petitioner demanded the return of the amounts
debited but the bank refused to do so. Thus, it filed a complaint.

HELD:

There was no categorical finding that the 23 checks were signed by persons
other than those authorized to sign. On the contrary, the NBI reports shows
that the fraud was an “inside job” and that the delay in the reconciliation of the
bank statements and the laxity and loss of records
control in the printing of the personalized checks facilitated the fraud. It further
doesn’t provide that the signatures were forgeries.

Forgery cannot be presumed. It should be proven by clear, convincing and positive

evidence. This wasn’t done in the present case.

The petitioner cannot invoke Section 23 because it was guilty of negligence not only
before the questioned checks but even after the same had already been
negotiated.