N. T. Hashim Co. v. The Estate of John Kernan

Summary

This case involved a dispute over the rightful holder of a promissory note after the maker's death. John Kernan had executed a P2,490 promissory note to N.T. Hashim & Co., which was later indorsed to A.T. Hashim and then indorsed in blank. When the estate commissioners disallowed the claim, the partnership appealed. The Supreme Court affirmed that N.T. Hashim Co. was the proper party to collect, ruling that the Civil Code governed since the note did not originate from a commercial operation. The indorsements were ineffective because they were made after the note was overdue and without consideration, having only the force of simple cession. The decision clarified the application of civil versus commercial law principles to negotiable instruments and established that overdue indorsements without consideration do not effectively transfer negotiable instruments under Philippine law.