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G.R. No. L-63419 December 18, 1986

FLORENTINA A. LOZANO, petitioner,

vs.
THE HONORABLE ANTONIO M. MARTINEZ, in his capacity as Presiding Judge, Regional Trial
Court, National Capital Judicial Region, Branch XX, Manila, and the HONORABLE JOSE B.
FLAMINIANO, in his capacity as City Fiscal of Manila, respondents.

Facts:

Petitioners moved to quash informations under Batas Pambansa Bilang 22 (Bouncing Check
Law), the statute being unconstitutional. Petitioners content that the language of BP 22 is broad
enough to cover all kinds of checks, whether present dated or post dated, whether issued in
payment of pre-existing obligations or given in mutual or simultaneous exchange for something
of value. BP 22 punishes a person who makes or draws and issues any check on account for
value knowing that at the time of issue, he does not have sufficient funds or credit with the
drawee bank.

Petitioners further contend that BP 22 offends the Constitutional provision forbidding

imprisonment for debt and impairs freedom of contract.

Issue:

Whether or not BP 22 is a valid exercise of Police Power.

Ratio Decidendi:

The offense punished in BP 22 is the act of issuing a worthless check, not non-payment of an
obligation. The issuance of worthless check touches the interests of the community at large
since putting valueless commercial papers in circulation can pollute channels of trade and
commerce, and injure banking system. This is not an offense against property, but an offense
against public order.

The freedom of contract which the Constitution protects is the freedom to enter into lawful
contratcs, not those that contravene public policy. Also, checks are not mere contracts, but
commercial instrument that is a convenient substitute money.