INTERPLEADER SUIT: SECTION 88; ORDER 35
What do you MEAN by interpleader suit? What is the OBJECT of filing an interpleader suit? What are required CONDITIONS which must be satisfied for filling an interpleader suit? Who may FILE and who may not file interpleader suit? What is the TEST to determine as to whether a suit is interpleader suit? Discuss the PROCEDURE of filing the interpleader suit.
Meaning
An interpleader suit is a suit in which the real dispute is not between a plaintiff and a defendant but between the defendants who interplead against each other, unlike in an ordinary suit. In an inter- pleader suit, the plaintiff is not really interested in the subject-matter of the suit.
Section 88 of the Code enacts that TWO OR MORE PERSONS CLAIMING ADVERSELY to one another the SAME DEBT,SUM OF MONEY OR OTHER PROPERTY, MOVABLE OR IMMOVABLE, from a person who does not claim any interest therein except the charges and costs incurred by him and is ready to pay or deliver the same to the rightful claimant, may file an interpleader suit.
OBJECT --- The primary object of filing an interpleader suit is to get claims of rival defendants adjudicated.
CONDITIONS: SECTION 88----- Before an interpleader suit can be instituted, the following conditions must be satisfied:
I. There must be some debt, sum of money or other property movable or immovable in dispute;
II. Two or more persons must be claiming it adversely to one another;
III. The person from whom such debt, money or property is claimed must not be claiming interest therein other than the charges and costs and he must be ready and willing to pay or deliver it to the rightful claimant; and
IV. There must be no suit pending wherein the rights of rival claimants can be properly adjudicated.
ILLUSTRATIONS
(1) A is in possession of property claimed by B and C adversely. A does not claim any interest in the property and is ready to deliver it to the rightful owner. A can institute an interpleader suit.
(2) A, a railway company, is in possession of goods as a consignee. It does not claim any interest in the goods except lien for wharfage, demurrage and freight but rival claims have been made by B and C adversely to each other. A can institute an interpleader suit.
(3) A is liable to pay Rs 40,000. The amount is claimed by B and C adversely to each other. According to A, he has already paid Rs 10,000. An interpleader suit would be competent for Rs 30,000.
WHO MAY FILE INTERPLEADER SUIT? -- A person who has no interest in any debt, sum of money or other property, movable or immovable, except the charges or costs and is ready to pay or deliver the property to the rightful claimant may file an interpleader suit.
WHO CANNOT FILE INTERPLEADER SUIT?: RULE 5--- An agent cannot sue his principal, or a tenant his landlord, for the purpose of compelling them to interplead with persons other than persons claiming through such principals or landlords.[R. 5.]
The reason for the rule seems to be that ordinarily an agent cannot dispute the title of his principal. Likewise, a tenant cannot dispute the title of his landlord during the subsistence of the tenancy. [S. 116, Evidence Act, 1872.]
TEST--- In order to decide whether a suit is in the nature of an interpleader suit, the court must have regard to all the prayers in the plaint. A suit does not become an interpleader suit merely because the plaintiff requires the defendants to interplead with each other as regards one of the prayers in the plaint.
PROCEDURE: ORDER 35 RIDES 1-4--- Order 35 lays down the procedure for interpleader suits. In every interpleader suit, in addition to other statements, the plaint also must state
I. that the plaintiff claims no interest in the subject-matter in dispute other than the charges and costs;
II. the claims have been made by the defendants severally; and
III. there is no collusion between the plaintiff and any of the defendants.[Or. 35 R. 1.]
The court may order the plaintiff to deposit the amount or place the property in the custody of the court and provide costs incurred by him by giving him a charge on the thing claimed. [Rr. 2, 6.] At the first hearing, the court may declare that the plaintiff is discharged from all liability, award him costs and dismiss him from the suit. [R. 4.] On the basis of evidence available, the court may also adjudicate the title to the thing claimed. Where it is not possible, the court may direct that an issue or issues between the parties be framed and tried, one of the claimants be made a plaintiff in lieu of or in addition to the original plaintiff and the suit shall proceed in an ordinary manner.[Rr. 4, 5.]
ILLUSTRATIONS:
1. A is liable to pay Rs 50,000. The said amount is claimed by B and C adversely. A does not dispute his liability and is willing to pay the amount either to B or to C declared to be the rightful claimant by the Court. A may file a suit under this section by making B and C as defendants (Or. 35 R. 1). He can deposit Rs50,000 in Court (Or. 35 R. 2). On such deposit, the Court may discharge him from liability by awarding costs to him and by removing his name from the suit. (Or. 35 R. 4).
2. A holds Rs 50,000 claimed by B and C adversely to each other. A institutes an interpleader suit by joining B and C as defendants. It is revealed that A had a secret agreement with B before the institution of the suit that if B succeeded in the suit, he would accept Rs40,000 in full and final satisfaction of his claim. In view of the agreement, A has interest in the subject-matter of the suit and he cannot bring an interpleader suit. The suit must be dismissed.
Appeal- An order dismissing the interpleader suit filed by the plaintiff is a "decree". Likewise an adjudication upon the claims of defendants is also appealable as "decree".A decision under Rules 3, 4 and 6 of Order 35 is an appealable order. [Or. 43 R. 1 (p).]
Interpleader suit can be filed to claim
a. Some debt
b. Some debt or sum of money
c. Some debt or sum of money or movable property
d. Some debt or sum of money or movable property or immovable property.
In Interpleader suit,
a. Plaintiff has no interest in the suit property at all
b. Plaintiff has no interest in the suit property at all except the charges and costs incurred by him
c. Plaintiff has interest in the suit property besides the charges and costs incurred by him
d. Only defendants claim adversely and Plaintiff has no interest in the suit property at all except the charges and costs incurred by him
In Interpleader suit, in addition to the other statements, the plaint also must state
a. that the plaintiff claims no interest in the subject-matter in dispute other than the charges and costs;
b. the claims have been made by the defendants severally; and
c. there is no collusion between the plaintiff and any of the defendants.
d. All of the above
With regard to Interpleader suit which out of following statements is the correct?
1. An agent cannot sue his Principal.
2. A tenant cannot sue his landlord.
3. Both an agent and tenant can sue Principal or land lord in an interpleader suit.
4. In every interpleader suit, in addition to other statements, the plaint must state that the plaintiff claim no interest in the subject matter in dispute other than the charges and costs, the claims have been made by the defendants severally and there is no collusion between the plaintiff and any of the defendants.
a. 1 and 2
b. 1, 2 and 3
c. 1, 2, 3 and 4
d. 1, 2 and 4
