various sections of N I ACT( cont.)

section -7
Drawee
The maker of a Bill of Exchange or Cheque is called the drawer, the person thereby directed to pay is called the drawee.
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-8 Holder
The Holder of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.
Where the bill of exchange or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.
section-9 Holder In Due course
Holder in due course means any person who for consideration became the possessor of the promissory note, bill of exchange or cheque if payable to bearer, or the payee or endorsee thereof, if, before the amount mentioned in it became payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.
Purchaser of a cheque is a holder in due course and law requires that there is no necessity that there should be an endorsement also.

section-10 Payment in Due course
Payment in due course, means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.