Section 5 of Negotiable Instrument
Act, 1881 says
A "bill of exchange" is an
instrument in writing containing an unconditional order,
signed by the maker, directing a certain person to pay
a certain sum of money only to, or to the order of,
a certain person or to the bearer of the instrument.
Thus Bill of exchange
is an instrument in writing by a party (maker or drawer)
unconditionally ordering another (payor) to pay a certain
amount to a third party (payee).
It is the same as a draft. A bill
of exchange drawn on a bank account is a "check."
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