Which bill of exchange is an inland instrument under section 11 of the Negotiable Instruments Act, 1881?
An inland bill must be drawn in India and either payable in India or drawn on a person resident in India. An instrument outside the definition in section 11 is foreign under…
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Which bill of exchange is an inland instrument under section 11 of the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer C
An inland bill must be drawn in India and either payable in India or drawn on a person resident in India. An instrument outside the definition in section 11 is foreign under section 12.
Option feedback
Option A
Drawing the bill in India is insufficient when it is payable abroad and drawn on a non-resident.
Option B
A bill drawn abroad fails the requirement of being drawn in India.
Option C
The bill is drawn in India and drawn on a person resident in India. That is sufficient even though payment is due abroad.
Option D
The bill was drawn outside India and does not meet section 11.
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