An unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer. Person who gives the order to pay is the ‘drawer’; person to whom the order to pay is given is the ‘drawee’; the person to whom the payment is to be made is the ‘payee’.

A "bill of exchange" is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at a fixed or determinable future time a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument. [Section 5 of the Negotiable Instrument Act, 1881 (Act XXVI of 1881)]

Bill of exchange means a bill of exchange as defined by the Negotiable Instruments Act, 1881, and includes also a hundi, and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money. [Section 2(2), 2(3) of the Stamp Act, 1899 (Act II of 1899)]

Bill of exchange includes a hundi and a cheque. [Section 2(2) of the Limitation Act, 1908 (Act IX of 1908)]

A holder of a bill of exchange in due course is entitled to encash the same on maturity and payment to him cannot be restrained even if the drawer of the bill defrauded the drawee after acceptance of the bill by the drawee. [Exportos India vs. Rupashi Garments and others; 11 BLD (HCD) 65]