SOCO VS FRANCISCO

FACTS: Pet Soco and Francisco entered into a contract of lease whereby Soco leased
her commercial building and lot. Francisco noticed that Soco did not anymore send
her collector for the payment of rentals and at times there were payments made but
no receipts were issued. Francisco wrote to Soco and sent his payment for rentals by
checks. Socos counsel sent a notice to Francisco to vacate the premises leased.
Franciscos counsel informed Soco that all payments of rental due her were in fact
paid by Commercial Bank and Trust Company through the Clerk of Court of the City
Court of Cebu. Despite this, Soco filed this instant case of Illegal Detainer. Issue is
whether there was a valid consignation.
IN THIS CASE:
The court held that the essential requisites of a valid consignation must be complied
with fully and strictly in accordance with the law, Articles 1256 to 1261, New Civil
Code. That these Articles must be accorded a mandatory construction which require
absolute compliance with the essential requisites therein provided.
Court held that Francisco has utterly failed to prove the following requisites of a valid
consignation. For consignation to be effective, the debtor must show:
There was a debt due;
Consignation of the obligation had been made because the creditor to whom tender
of payment was made refused to accept it, or because he was absent or
incapacitated, or because several persons claimed to be entitled to receive the
amount due; (NOT MET)
Previous notice of the consignation had been given to the person interested in the
performance of the obligation; (NOT MET: purpose is to give creditor opportunity to
reconsider unjustified refusal and to accept to avoid consignation and litigation)
Amount due was placed at the disposal of the court; and (NOT MET: no copy of
official receipts)
After the consignation had been made the person interested was notified thereof.
(NOT MET: to enable the creditor to withdraw to avoid deterioration, etc.)
Failure in any of these requirements is enough ground to render a consignation
ineffective.