Section 7 - Drawer, Drawee : Negotiable Instruments Act 1881
Who is Drawer? Who is Drawee? Drawer and Drawee are defined
under Section 7 of Negotiable Instruments Act 1881
Section 7 of Negotiable Instruments Act 1881: "Drawer", "Drawee"
The maker of a bill of exchange or cheque is
called the "drawer"; the person thereby directed to
pay is called the "drawee".
"Drawee in case of need": When the bill or in any
endorsement thereon the name of any person is given
in addition to the drawee to be resorted to in case
of need, such person is called a "drawee in case of
"Acceptor": After the drawee of a bill has signed
his assent upon the bill, or, if there are more
parts thereof than one, upon one of such parts, and
delivered the same, or given notice of such signing
to the holder or to some person on his behalf, he is
called the "acceptor".
"Acceptor for honor" : When a bill of exchange has
been noted or protested for non-acceptance or for better
security, and any person accepts it supra protest for
honor of the drawer or of any one of the endorser, such
person is called an "acceptor for honor".
"Payee" : The person named in the instrument, to whom or
to whose order the money is by the instrument directed
to be paid, is called the "payee".