Parties to a
Cheque:
The following three
parties are involved in a cheque:
Drawer:
ü Drawer
is the party who draws the cheque upon a specified banker.
ü He
is the maker of the cheque.
ü He
is the account holder who draws the cheque for drawing money from his bank
account.
ü He
is the person who issues cheque directing the bank to pay a certain sum of
money to a certain person or to the bearer.
ü Thus,
the person who signs the cheque is known as drawer.
Drawee:
ü Drawee
is the party upon whom the cheque is drawn.
ü Drawee
is the bank.
ü It
is the party to whom the Drawer gives order to pay the amount to the person
named on the cheque or his order to the bearer.
ü In
case of refusal of the order, the cheque is said to be dishonored.
Payee:
ü Payee
is the party who presents the cheque for payment.
ü He
is the person who receives money from bank.
ü He
is the party in favour of whom cheque is issued.
ü The
payee is the person whose name is mentioned on the cheque.
ü If
the cheque is made payable to self, the drawer himself becomes the payee.