A check was dishonored due to material alteration. Creditor filed an action against drawee bank for the amount. Is the creditor entitled?


No. If a bank refuses to pay a check (notwithstanding the sufficiency of funds), the payee-holder cannot, as provided under Sections 185 and 189 of the NIL, sue the bank. The payee should instead sue the drawer who might in turn sue the bank. This is so because no privity of contract exists between the drawee-bank and the payee (Villanueva v. Nite, G.R. No. 148211, July 25, 2006).