REPUBLIC V. EQUITABLE BANK
10 SCRA 8
FACTS:The corporation had acquired 24 treasury warrants by accommodating its former trusted employee who asked the corporation to cash the warrants, alleging it was difficulty to do directly with the government and that his wife expected a sort of commission for the encashment. The corporation
acceded to the request provided that it be first cleared and that the corporation would receive the amount before paying for it. The warrants were then cleared but later on, at different periods of time, the treasurer returned 24 warrants to the CB on the ground that they have forged. The bank refused to return the cash.
The clearing of the checks, it should be noted, was in accordance to the 24-hour clearing rule by the CB.