Who are the Drawer and Drawee?
The drawer is the maker of a bill of exchange or cheque. The drawee is the person who is directed by that instrument to pay. These statutory roles are fundamental to understanding the operation of bills of exchange and cheques.
Section 7 - Statutory Definitions
"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 in 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 need".
"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 honour". 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 honour of the drawer or of any one of the endorsers, such person is called an "acceptor for honour".
"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".
Definitions Explained
Drawer
The drawer is the person who makes a bill of exchange or cheque. In the case of a cheque, the drawer directs the specified banker to make payment according to the instrument.
Drawee
The drawee is the person directed to pay. Under Section 6, a cheque is drawn on a specified banker; accordingly, the specified banker is the drawee of a cheque.
Drawee in Case of Need
A drawee in case of need is an additional person named in the bill or in an endorsement to whom resort may be had when the need contemplated by the instrument arises.
Acceptor
A drawee of a bill becomes the acceptor after signing assent on the bill and completing the further statutory requirement of delivery or notice of the signing to the holder or a person acting on the holder's behalf.
Acceptor for Honour
Section 7 recognises acceptance for honour where a bill has been noted or protested for non-acceptance or for better security and a person accepts it supra protest for the honour of the drawer or an endorser.
Payee
The payee is the person named in the instrument to whom, or to whose order, the money is directed to be paid.
Related Provisions
Section 5
Defines a bill of exchange and the essential requirements of the order to pay.
Section 6
Defines a cheque as a bill of exchange drawn on a specified banker and payable on demand, and includes specified electronic forms.
Section 8
Defines "holder" in relation to a promissory note, bill of exchange or cheque.
Section 9
Defines "holder in due course" and states the statutory requirements for that status.
Official Source
The current text of the Negotiable Instruments Act, 1881 may be verified on India Code, the Government of India legislative database.
India Code - Government of India