About a cheque: A cheque is an instrument issued by a bank favouring it's customer to settle payment against an underlying transaction.
As per Negotiable Instrument Act under Article 6(six) it has been defined as an written instruction by the maker drawn on a specific banker with a undertaking to make payment a certain sum of money payable on demand.
Drawer: The holder of the account is called the drawer i.e. the person who signed the cheque.
Drawee: The cheque to whom is drawn on i.e. the bank is called drawee.
Payee: Payee is the person to whom the money is paid. i.e. the bearer of the cheque.
Payment in due course: Meaning the payment of cheque is made by the banker in accordance with the apparent tenor of the instrument in good faith and without negligence to any person as directed in the cheque.
As per Negotiable Instrument Act under Article 6(six) it has been defined as an written instruction by the maker drawn on a specific banker with a undertaking to make payment a certain sum of money payable on demand.
Drawer: The holder of the account is called the drawer i.e. the person who signed the cheque.
Drawee: The cheque to whom is drawn on i.e. the bank is called drawee.
Payee: Payee is the person to whom the money is paid. i.e. the bearer of the cheque.
Payment in due course: Meaning the payment of cheque is made by the banker in accordance with the apparent tenor of the instrument in good faith and without negligence to any person as directed in the cheque.
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