Withdrawal of consigned amount
Consignation is a special kind of payment where the debtor deposit the object of the obligation to a competent court in accordance with law whenever the creditor unjustly refuses to accept payment or because there are some circumstances present where direct payment to the creditor becomes impossible or inadvisable. Article 1260 discusses the concept of debtor's withdrawal, to wit:
The obligation remains in force before the approval of the court or acceptance of the creditor. Under Article 1260, as a matter of right, the debtor may withdraw the thing or amount consigned before the creditor has accepted the consignation or before a judicial declaration that the consignation has been properly made. In these instances, the debtor can withdraw even without the knowledge and consent of the creditor. If the creditor has accepted that consignation or there is a judicial declaration that the consignation has been properly made, the debtor can no longer withdraw the thing or amount deposited without the authorization of the creditor. [1][2]
ART. 1260. Once the consignation has been duly made, the debtor may ask the judge to order the cancellation of the obligation.Before the creditor has accepted the consignation, or before a judicial declaration that the consignation has been properly made, the debtor may withdraw the thing or the sum deposited, allowing the obligation to remain in force. (1180)
The obligation remains in force before the approval of the court or acceptance of the creditor. Under Article 1260, as a matter of right, the debtor may withdraw the thing or amount consigned before the creditor has accepted the consignation or before a judicial declaration that the consignation has been properly made. In these instances, the debtor can withdraw even without the knowledge and consent of the creditor. If the creditor has accepted that consignation or there is a judicial declaration that the consignation has been properly made, the debtor can no longer withdraw the thing or amount deposited without the authorization of the creditor. [1][2][1] Rabuya. (2019). Obligations and Contracts.
[2] De Leon. (2014). Obligations and Contracts.
