Short answer. Article 1258 of the Civil Code makes consignation by depositing what is owed at the disposal of judicial authority, before whom the tender of payment must be proved, or the announcement of the consignation in other cases. Once made, the interested parties must also be notified of the consignation.
What the law says
Consignation shall be made by depositing the things due at the disposal of judicial authority, before whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in other cases. The consignation having been made, the interested parties shall also be notified thereof.
Civil Code, Article 1258 — How Consignation Is Made. Read the full provision →
The core mechanism: depositing at the disposal of judicial authority
Article 1258 states the basic method plainly: consignation shall be made by depositing the things due at the disposal of judicial authority. What you are doing is not simply setting the payment aside on your own — it is placing it under the control of a judicial authority, which is what distinguishes consignation from an informal attempt to pay that the creditor can simply ignore.
Proving the tender, or announcing the consignation
The article distinguishes two situations for how the deposit connects back to your original attempt to pay. It requires the deposit to be made before whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in other cases. In one situation, you have to prove that you actually tendered payment and it was refused; in another, what is required instead is an announcement of the consignation itself. The article marks this as a real distinction without spelling out, in this text, exactly which situation calls for which.
Notifying the interested parties is a separate, required step
Making the deposit is not the final step. The article adds: the consignation having been made, the interested parties shall also be notified thereof. This notice requirement exists independently of the deposit — the interested parties, which would include your creditor, have to be told that the consignation actually happened, so that they are not left unaware that payment has, in the law's view, been made available to them.
What this article does not spell out for you
Article 1258 describes the mechanism, not the procedural mechanics of filing — it does not itself name a court, a specific form, a fee, or a deadline for carrying out these steps, and this page will not invent them. What it does establish clearly is the sequence a valid consignation follows: deposit at the disposal of judicial authority, proof of tender or announcement of the consignation as the case requires, and notice to the interested parties once it is done. Bring your evidence of the creditor's refusal to accept payment, since that refusal is what makes consignation necessary in the first place.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Spouses Oscar and Thelma Cacayorin vs. Armed Forces and Police Mutual Benefit Association, Inc, G.R. No. 171298, April 15, 2013 — read the decision on LawPhil →
- Soledad Dalton vs. FGR Fealty and Development Corporation, et al, G.R. No. 172577, January 19, 2011 — read the decision on LawPhil →
- B.E. San Diego Inc. vs. Rosario T. Alzul, G.R. No. 169501, June 8, 2007 — read the decision on LawPhil →
- Confederation of Sugar Producers Asso., Inc., et al. vs. Dept. of Agrarian Reforms et al, G.R. No. 169514, March 30, 2007 — read the decision on LawPhil →