Negotiable Instruments Act, 1881 · Chapter II: Of Notes, Billsand Cheques
Section 7: ''Drawer.''
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 indorsement 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 indorsers, 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".
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 7
-
Bijoy Kumar Moni v. Paresh Manna & Anr.
The dishonoured cheque in question was signed by respondent-accused, in his capacity as Director and Authorised Signatory of the Company Shilabati Hospital Pvt. Ltd., on the account maintained by the Company with…
-
Bijay Agarwal v. M/s Medilines
Whether the signatory of a cheque authorized by the Company is a drawer and whether such a signatory could be directed to deposit any sum out of the fine or compensation awarded by the trial Court u/s.148 of the…
-
Shri Gurudatta Sugars Marketing Pvt. Ltd. v. Prithviraj Sayajirao Deshmukh & Ors.
Whether the signatory of the cheque, authorized by the “Company”, is the “drawer” and whether such signatory could be directed to pay interim compensation in terms of section 143-A of the Negotiable Instruments Act,…
- American Express Bank Ltd. v. Calcutta Steel Co. and Ors.