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”.
Legal Commentary & Landmark Judgments: Section 7
Section 7 defines key statutory actors in negotiable instruments jurisprudence: Drawer, Drawee, Drawee in case of need, Acceptor, Acceptor for honour, and Payee.
In corporate litigation, verifying the exact legal persona of the drawer is vital. If a cheque is signed by a director on a company account, the company is the drawer; initiating Section 138 proceedings without arraigning the company as prime accused is fatal under Section 141.