Question

S a resident of Haridwar draw a bill of exchange of $Rs.5000$ upon Y payable in Rishikesh. This is a ___________.

• A. foreign bill
• B. inchoate bill
• C. inland
• D. accommodation bill

Answer 1

The correct option is C inland

A bill which is (i) drawn or made in India and also made payable in India or (ii) drawn or made in India upon any resident in India, although it may be made payable in a foreign country, is deemed to be an inland bill.

Example: A bill of exchange drawn in Bombay and made payable in Delhi, although the drawee may be residing outside India. Or a bill of exchange drawn in Madras on a person resident in Delhi, although it may be payable outside.

S, a resident of Haridwar draws a bill of exchange of Rs. 5,000 upon Y payable in Rishikesh is an inland bill.