According to Section 11 inland instrument means a promissory note bill of exchange, or cheque drawn or Made in India and made payable in or drawn up on any person resident in India shall be Deemed to be and inland instrument.
And inland instrument therefore may be either
1. Made over drawn in India and also made payable in India.
2. Drawn in India or a person resident in India
Since a promissory note is not drawn on any person in India an inland promissory note before is one which is both Made in India and also made payable in India.
Example of Inland instruments
1. a promissory note made in Delhi and payable in Bombay.
2. A bill of exchange drawn in Delhi on a person resident in Bombay.
Foreign Instrument
According to Section 12 foreign instruments means any instrument which is not so drawn made or made payable that it may be called and inland instrument shall be Deemed to be a foreign instrument.Thus a foreign instrument is one which is not an inland instrument.
Examples of foreign instruments are
1. A promissory note Made in India but made payable in England.
2. A promissory note made in England but payable in India.
3. A bill of exchange drawn in India and payable in England.
4. A bill of exchange drawn in England and made payable in India.
