5/3/2021 E-Library - Information At Your Fingertips: Printer Friendly shipping company and that he invest US$100,000 in the venture. After several meetings, he accepted the proposal and agreed to invest the said amount. The understanding is that he would own 10% of the shipping venture and Tan Chona will invite other persons to join in the business enterprise. (TSN-Cruz, 4 December 1991, p. 6, 12; TSN-Ybanez, 18 January 1992, pp. 7-10). "Johnny paid his investment to Tan Chona in two installments. The first was in the amount of US$30,000.00 given in one hundred dollar bills sometime in September or October 1984 at the Canada Restaurant, Manila. This was given personally by Johnny to Tan Chona (TSN-Cruz, 4 December 1991, p. 7, 18). He did not ask Tan Chona for any receipt as the latter is his friend and he trusted him (TSN-Ybanez, 18 January 1992, p. 12-13). On crossexamination, Johnny stated that later on, starting in 1986 when the incorporation papers of Hongfil were being processed, he asked Tan Chona several times to give him a receipt. Tan Chona allegedly told him that he will issue a receipt later (TSN-Ybanez, 18 January 1992, pp. 15-16). "Sometime in November and December 1984, Tan Chona called Johnny by telephone and asked for the additional US$70,000.00. They met again at the Canada Restaurant where he gave Tan Chona a note for the latter to get the amount from his brother-in-law in Hongkong (TSN-Cruz, 4 December 1991, p. 8) which he did (TSN-Cruz, 4 December 1991, p. 10). Upon arrival from Hongkong, Tan Chona handed to Johnny a receipt dated 10 January 1985 acknowledging that he received, through Mr. Chong Chue Wei, Check No. 8871192832, the amount of US$70,000.00 drawn against an account with the Nanyang Commercial Bank (TSN-Cruz, 4 December 1991, p. 10, 12). "Hongfil Shipping Corporation was formally established in 1986 (TSN-Cruz, 4 December 1991, p. 12). Together with Tan Chona and Johnny, the following made up the incorporators and subscribers of the capital stock of the corporation: Dy Un, James Wong, Oscar Sanchez and Nelson Arendain. Except for Nelson Arendain, the same persons composed the Board of Directors (TSN-Cruz, 4 December 1991, p. 13-14). "The Articles of Incorporation of the corporation, however, listed Johnny's paid up capital contribution as P150,000.00 only (TSN-Cruz, 4 December 1991, p. 14). This prompted him to ask Tan Chona why a lesser amount than he actually invested was reflected in the articles. The latter allegedly told him that his capital contribution will be increased later as the other incorporators have not yet fully paid their subscriptions (TSN-Cruz, 4 December 1991, p. 16). Johnny discussed the needed correction with Tan Chona several times although he was unable to follow it up later on because of the disputes that racked their family in 1986 to 1987 (TSN-Cruz, 4 December 1991, p. 18). "Afterwards, he orally demanded from Tan Chona for the return of his investment, less US$5,000.00 which is the equivalent amount of his paid up https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/52802 3/11