The Supreme Court (SC) has granted the petition of Land Bank of the Philippines and gave the Department of Justice (DoJ) the green-light to prosecute businessman-rocker Ramon "RJ" Jacinto for issuing reportedly unfunded checks for P465 million.

The SC’s Third Division granted the bank’s petition seeking to reinstate the DoJ resolution dated October 25, 2000, finding the existence of probable cause against Jacinto for violation of Batas Pambansa Blg. (BP) 22, The Bouncing Checks Law.

In a nine-page decision penned by Associate Justice Martin Villarama, the SC nullified the Court of Appeals (CA) ruling dated August 6, 2002. Concurring with the ruling were Associate Justices Conchita Carpio Morales, Lucas Bersamin, and Jose Catral Mendoza.

The SC reinstated and upheld the DoJ resolution dated October 25, 2000, which directed the filing of appropriate information for violation of B.P. 22 against respondent Ramon P. Jacinto.

In setting aside the CA’s decision, the SC held contrary to Jacinto’s claim that the “Restructuring Agreement” he signed as president of First Women’s Credit Corporation (FWCC) with LBP on June 3, 1998, or prior to the maturity of the postdated checks he issued, did not release him from his loan obligations with the bank.

Respondent’s (Jacinto) contention that if it be proven that the loan of FWCC had been novated and restructured, then his liability under the dishonored checks would be extinguished, failed to persuade the Court, according to the decision.

“There was no express stipulation in the Restructuring Agreement that respondent is released from his liability on the issued checks and in fact the letter-agreement between FWCC and LBP expressly provide that respondent’s joint and several signatures continue to secure the loan obligation and the postdated checks issued continue to guaranty the obligation,” the Court noted.

As pointed out by LBP, the Court said, out of the nine postdated checks issued by Jacinto, eight were dated June 8 to October 30, 1998, or after the execution of the June 3, 1998, Restructuring agreement.

The Court stressed that if the agreement extinguished Jacinto’s loan obligations, then the businessman should have demanded the return of the checks.