Peer sees Fat Owl wobbling in (3,4)
I believe the answer is:
law lord
'peer' is the definition.
(I've seen this before)
'fat owl wobbling in' is the wordplay.
'fat' becomes 'lard' (I've seen this before).
'wobbling' is an anagram indicator.
'in' means one lot of letters goes inside another.
'owl' with letters rearranged gives 'wlo'.
'lard' enclosing 'wlo' is 'LAW LORD'.
'sees' is the link.
(Other definitions for law lord that I've seen before include "Pre-August 2009, a member of the Appellate Committee of the Upper House" , "peer into cases" , "noble bigwig" .)