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Section 33: Only drawee can be acceptor except in need or for honor

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 32 All 148 Sections of Negotiable Instruments Act Section 34

Legal Commentary & Landmark Judgments: Section 33

Section 33 establishes the statutory rule that no person other than the designated drawee of a bill of exchange can bind themselves as an acceptor, except as an acceptor for honour.

  • Exclusivity of Drawee Acceptance: Only the person named as drawee on the face of the bill has the legal capacity to accept it.
  • Stranger Signatures Invalid: If a third-party stranger signs an acceptance, it does not constitute a valid acceptance under the Act (though it may create guarantee liability under general contract law).
  • Exception of Acceptance for Honour: A third party may step forward and accept 'for honour' of a party under Section 108 only after the bill has been protested for dishonour.
Key Landmark Precedents:
  • Davis v. Clarke (1844) 6 QB 16: The classical precedent holding that a bill addressed to A cannot be accepted by B; B's signature on the bill as acceptor is a legal nullity under negotiable instruments law.
  • Steele v. McKinlay (1880) 5 App Cas 754: Affirmed that an indorsement or acceptance by a stranger to the bill does not create statutory acceptor liability under mercantile law.
Courtroom Practice & Strategic Litigation Guidance:

In international trade disputes, always confirm that the accepting signature matches the exact entity named as drawee in the bill. If an affiliated entity or subsidiary accepts on behalf of a parent without power of attorney, the acceptance is void under Section 33.

Section 32 All 148 Sections of Negotiable Instruments Act Section 34