From  the  decision  of the Court of  First Instance of Cebu in Civil Case No.  R-4372 sentencing Mario Delgado and Leonor Delgado Dee to  pay, jointly and severally, to the Capital Insurance and  Surety Company  Inc., the sum of P583.95, with legal interest thereon from the filing of the complaint until  paid in full,  plus  the  sum of P116.79 as attorney's  fees and costs, the Delgados interposed  an appeal  to  this court.

In  our  decision  promulgated  on  March 30,  1963, we stated the facts  established by the evidence  as follows:

"Appellee, Capital  Insurance &  Surety  Co. Inc., an  insurance company duly organized under the laws of  the  Philippines, issued on August  1,  1953,  its  Fire   Insurance Policy No.  C-1137  for P30.000,  whereby it insured several personal properties of appellants  located at Sanciangko Street, Cebu City, for a period of one year,  at  an  annual  premium  of P337.50 On  August 8, 1953,  a bill for the premium  charges of P337.50,  plus P5.10  for documentary stamps was sent to  the latter,  but the same remained unpaid.  This notwithstanding, on August 31, 1954, a renewal certificate (No. C-1238) of Policy No. C-1137  was  issued by appellee covering the period from  August 1, 1954 to  August 1, 1955 at the same rate of premium.

"On October 25, 1954, appellee's assistant  manager, Virgilio Formoso,  wrote appellant Mario Delgado  reminding him of  the unpaid premium in the total sum  of  P685.20. In  reply thereto,  Delgado promised to pay the  unpaid charges  on or  before  November 10th of the same year. As he  failed to do  so, appellant filed the  present action with the Court of First Instance of  Cebu  against appellant to recover from them the sum of  P583.95, representing the premium charges  an  Fire Insurance  Policy No. C-1137, the further  sum of P16.79 as  attorney's fees, and costs.

"Appellants' answer alleged that they did not insure their property against fire  with appellee, and disclaimed liability on the  further ground that, as they failed  to  pay  the corresponding premium no contract of insurance was consummated  and   therefore appellee had no cause of action against them."

The above facts notwithstanding, we set aside the appealed decision and  dismissed the case without  costs, on the ground that the Court of First Instance of Cebu had no original jurisdiction over the case and all proceedings had thereat were void.

In due time, appellee filed a motion for reconsideration, the pertinent portions of which  read as  follows:

"2. That this Honorable Court is justified in  the  foregoing conclusion  for the reason that the Record  on Appeal merely indicated thru  inadvertence and omission  that this  case  was  filed  in  the Court of First Instance of Cebu;

"2. That this Honorable Court is justified in  the  foregoing con-thru Atty. Eufrosino L. Ramos there  appears on Page 1 the following (1) That plaintiff filed with  the  above-named Court  of First Instance of Cebu, Philippines a Complaint dated November 28, 1955 for the recovery of a sum of money docketed as Civil Case No. R-4372 which Complaint  reads as follows:  *  *  *'

"That the  foregoing allegation in  the Record on Appeal is misleading erroneous, and not in  accordance with the true facts but the same escaped the notice of the plaintiff  so that  no objection was filed to the Record on Appeal; and the trial  court did not also notice the error and therefore approved the Record  on Appeal (pages  13 & 14,  Record on Appeal);

"4. That the true fact is that the  Complaint dated Nov. 28, 1955 quoted on pages 2 and 3 is a Complaint  filed in the Municipal Court of Cebu City in  Civil Case  No. R-2327;  that  this  is  shown by the allegation of venue in paragraph  5 of said  complaint  dated) November 28, 1955 which would not be necessary in a Complaint filed in the Court of First Instance as said  Paragraph 5  of the Complaint reads: '(5) that the insurance policy  issued by the plaintiff to the  defendants was issued  in  Cebu City  and this  court has jurisdiction  over this case pursuant  to  sub- paragraph  (b), Sec. 2, Rule 4, Rules of Court' (page 3, Record on  Appeal);

"5. That there  is attached hereto a Certification of the Clerk of Court of the Court of First Instance of Cebu that Civil Case No. R-4372  is a case  on  appeal from the Municipal Court of  Cebu City being Civil  Case No. R-2327  of  said Municipal Court and the Complaint in the Municipal Court was dated  November  28,  1955; that the Certification of the Clerk of Court of the Court of First Instance of Cebu is  attached hereto and made an  integral part hereof duly marked as Exh. 'A'; that this  court can take judicial cognizance of all proceedings  before it and in the lower  courts; that the interest of justice require that the true  facts that this case, started  in  the Municipal  Court  should be made  to  prevail over an error in the Record on Appeal; that this Honorable Court if not satisfied with the attached Certification an require the Clerk of Court of the Court of First Instance of Cebu to elevate to it fill of the original records of this case so that it can ascertain for itself that it actually  originated in the Municipal  Court of Cebu City;"

Appellants  filed  an  opposition  to  said motion for reconsideration, alleging, firstly, that it is  now too late to correct the record  on appeal; secondly, that appellee  is not entitled to relief, because of its  failure  to  object in the  lower court to the approval of the record on appeal, incomplete and inaccurate as it was when filed in said court; and lastly,  that "the defendants-appellants are not  bound to pay premiums on an insurance policy which would not have been honored anyway because they did not pay the premiums."

It appearing now that the  present action was in  fact commenced in the Municipal Court of Cebu City where it was docketed  as  Civil Case No.  R-2327, it  is clear that the ground upon which we set aside the appealed decision can not  be maintained.

On the other hand, the  preponderance of the evidence shows that appellee issued fire insurance policy No. C-1137 in favor of appellants, covering a certain property belonging to the latter   located in Cebu City; that appellants failed to pay a balance of P583.95 on the premium charges due, notwithstanding demands made upon  them. As  with the issuance of the policy to appellants the same  became effective and  binding upon the contracting parties, the latter can not avoid the obligation of paying the premiums agreed upon.  In fact,, appellant Mario Delgado, in a  letter marked in the record as Exhibit G, expressly  admitted his unpaid account for premiums and asked  for an extension of time to pay the same.  It is  clear from the foregoing that appellants are under obligation to pay the amount sued upon.

Wherefore, our original decision is hereby set aside, and the appealed decision  is affirmed, with  costs.

Bengzon, C.  J., Padilla, Barrera, Paredes,  Regala and Makalintal, JJ., concur.