Section 11 NI Act: Inland instrument
Negotiable Instruments Act, 1881
Section 11 NI Act at a Glance
Section 11 NI Act defines an inland instrument as a promissory note, bill of exchange, or cheque that is drawn or made in India and is either made payable in India or drawn upon any person resident in India.
Section 11 NI Act Bare Act Text
11. Inland instrument.
A promissory note, bill of exchange or cheque drawn or made in India and made payable in, or drawn upon any person resident in, India shall be deemed to be an inland instrument.
Amendments to this section
- Subs. by Act 36 of 1957, s. 3 and the Second Schedule "a State".
Section 11 NI Act in Simple Words
Section 11 NI Act sets the test for when a promissory note, a bill of exchange, or a cheque is deemed to be an inland instrument. First, the instrument must be drawn or made in India.
Second, the instrument must fulfill at least one of two conditions: either it is made payable in India, or it is drawn upon any person resident in India. When both the origin in India and either of those two conditions are satisfied, the instrument is deemed to be an inland instrument under Section 11 NI Act.
Act 36 of 1957 put "India" in place of "a State", in both places.
When Section 11 NI Act Applies
- The instrument is a promissory note, a bill of exchange, or a cheque.
- The instrument is drawn or made in India.
- The instrument is either made payable in India or drawn upon any person resident in India.
Example of Section 11 NI Act
FAQs on Section 11 NI Act
What is Section 11 NI Act?▼
Section 11 NI Act defines an inland instrument under the Negotiable Instruments Act, 1881. A promissory note, bill of exchange, or cheque drawn or made in India and either made payable in India or drawn upon any person resident in India is deemed to be an inland instrument.
Must an instrument be both payable in India and drawn on a resident in India under Section 11 NI Act?▼
No. Provided the instrument is drawn or made in India, it only needs to be either made payable in India or drawn upon any person resident in India.
Is an instrument drawn outside India an inland instrument under Section 11 NI Act?▼
No. Section 11 NI Act requires the promissory note, bill of exchange, or cheque to be drawn or made in India, failing which Section 12 NI Act treats it as a foreign instrument.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·