7/25/2019 Consignation 2

1/3

REPUBLIC OF THE PHILIPPINES

METROPOLITAN TRIAL COURT

NATIONAL CAPITAL JUDICIAL REGION

BRANCH 50, CITY OF MANILA

JAMES R. RIED,

As represented by Rajiv Meimban,

-versus- CIVIL CASE NO. 6480

For: Consignation

DANIEL E. PADILLA,

Respondent,

x----------------------------------------------x

DECISION

Before this court is Petition for Consignation filed by Rajiv Meimban

Attorney-in-Fact of James R. Reid on 30 January 2015 (hereafter referred as

Petitioner) for failure of Daniel E. Padilla (hereafter referred as Respondent) to

accept the payment of a loan incurred by Petitioner in his favor, despite

Petitioners repeated attempt to tender payment.

Consignation is the act of depositing the thing due with the court or judicial

authorities whenever the creditor cannot accept or refuses to accept payment and it

generally requires a prior tender of payment. [Limkako vs. Teodoro, 74 Phil. 313].

In order to be valid, the tender of payment must be made in lawful currency.

Tender of payment must be distinguished from consignation. Tender is the

antecedent of consignation, that is, an act preparatory to the consignation, which is

the principal, and from which are derived the immediate consequences which the

debtor desires or seeks to obtain. Tender of payment may be extrajudicial, while

consignation is necessarily judicial, and the priority of the first is the attempt to

7/25/2019 Consignation 2

2/3

make a private settlement before proceeding to the solemnities of consignation. [8

Manresa 325].

According to Article 1256, New Civil Code, if the creditor to whom tender

of payment has been made refuses without just cause to accept it, the debtor shall

be released from responsibility by the consignation of the thing or sum due.

Petitioners agent tried to tender payment to the respondent, however

respondent still refused said payment despite being exhibited agents authorization

from Mr. Reid, the principal, and prior notice was made to creditor his efforts

prove futile and he was left with no recourse other than depositing the said amount

in court.

On the basis of the foregoing, this Court finds that there is ground for the

consignation of the payment for the balance of the loan obtained by petitioner Reid

from respondent Padilla.

WHEREFORE, judgement is hereby rendered as follows:

1. The court declares the consignation of the payment for balance

of the loan made by the petitioner to be valid and legal and

hereby release[s] the petitioner from the obligation of paying the

said balance

SO ORDERED,

Manila, February 9, 2015

JURADO H. TAGAHATOL

Presiding Judge

Copy furnished through registered mail:

RAJIV P. MEIMBAN

Agent of Mr. JAMES R. REID

7/25/2019 Consignation 2

3/3

2F Unit 5 Cherry Bldg, Buenmar AvenueNangka, Marikina City.DE GRACIA GUILLAMON EUBANK

VALDEZ LAW OFFICE

Counsel for the PlaintiffUnit 403 Dona Consuelo Building929 N. Reyes St., Sampaloc, Manila

ATTY. MARIVIC B. DE GRACIA

IBP No. 827847, 6/8/11, QCPTR No. 576784, 6/6/15, QC

Attorneys Roll No. 374435MCLE Compliance No. 11-0989699