Payment made to third person does NOT result in novation

The fact that respondent Eleazar made payments to AFP-MBAI and the latter accepted them does not ipso facto result in novation. There must be an express intention to novate animus novandi. Novation is never presumed. Article 1300 of the Civil Code provides inter alia that conventional subrogation must be clearly established in order that it may take effect. [G.R. No. 120817. November 4, 1996]