Infinite Sparkles

  PARTIES TO NEGOTIABLE INSTRUMENT   1. MAKER The person who promises to pay a certain sum of money to the other person, makes a promissory note, signs it and gives it to the other party. Because he makes it, therefore he is called as the Maker. In simple words, the maker is the debtor who promises to pay to his creditor. 2. PAYEE (Section 7) Payee is the person who is entitled to receive the amount due on a negotiable instrument. He is the recipient of the amount due on a promissory note, bill of exchange and a cheque. In a Promissory Note: - Payee is the receiver of money, to whom the promise is being made. In a Bill of Exchange: - Drawer is the payee. - When B/E is endorsed, the endorsee becomes the payee. In a Cheque : Drawer (i.e. the customer) is the Payee   3. DRAWER (Section 7) The person who draws (or makes) the bill of exchange is called as the drawer. In case of a cheque, drawer is the customer who draws the cheque on his bank (i.e., the drawee).   4. ...

Meaning of Presentment Presentment means to present or show the negotiable instrument. A party to the negotiable instrument has to present (show) the instrument to the other party for various reasons. Like for instance, the drawer of a bill of exchange has to present (show) the bill to the drawee so that the drawee accepts the bill, only then the bill shall become enforceable by law. Similarly all kinds of negotiable instruments have to be presented (shown) to the paying party (i.e. the maker of a promissory note, the drawee of a bill of exchange and the banker for cheque) so that the payment is done by the paying party. RULES REGARDING PRESENTMENT FOR PAYMENT   (1) Non presentment leads to discharge of other parties (Section 64)   The holder of a promissory note, bill of exchange or cheque must present for payment to the maker, acceptor or drawee respectively at a proper place and at a proper time. In default of such presentment, the other parties thereto are not liable there...