''Drawer.''
Section 7 of the Negotiable Instruments Act, 1881 deals with ''Drawer.''. The maker of a bill of exchange or cheque is called the drawer; The Act came into force on 01 Mar 1882.
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". -- 1[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".
Section 7, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Milind Shripad Chandurkar vs Naimulla M. Khan
Court's Decision & Legal Precedent
A sole proprietor of a proprietary concern cannot maintain a complaint under Section 138 of the Negotiable Instruments Act, 1881, based solely on affidavit claiming proprietorship. The proprietor must establish his proprietorship through documentary evidence such as business registration documents, tax records, bank account statements, and similar official records to satisfy the statutory requirement of being the 'payee' or 'holder in due course' of the cheque. Mere affidavit statements, admissions by the accused, or oral testimony of witnesses are insufficient when documentary evidence can reasonably be expected to exist for a substantial business undertaking.
On this section: Definition of 'Payee' - the person named in the instrument to whom the money is directed to be paid
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 7
What have the courts held on Section 7 of the Negotiable Instruments Act?
Milind Shripad Chandurkar vs Naimulla M. Khan (03 Mar 2011) is the leading judgment on this section among those set out below: Definition of 'Payee' - the person named in the instrument to whom the money is directed to be paid.
How do I find court cases under Section 7 of the Negotiable Instruments Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NI Act 7, section 7 NI Act, section 7 of the Negotiable Instruments Act. People searching for it also type ni act holiday 7 july 2025. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Milind Shripad Chandurkar vs Naimulla M. Khan (03 Mar 2011).
When did Section 7 of the Negotiable Instruments Act come into force?
Section 7 of the Negotiable Instruments Act, cited as NI Act 7, came into force on 01 Mar 1882, having been enacted on 09 Dec 1881. It is in force as at the date shown on this page.
Other sections of this Act
- 138. Dishonour of cheque for insufficiency, etc., of funds in the account312 words
- 142A. Validation for transfer of pending cases299 words
- 143. Power of Court to try cases summarily297 words
- 143A. Power to direct interim compensation291 words
- 142. Cognizance of offences290 words
- 141. Offences by companies287 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.