Introduction (S-88 & Order XXXV)
An interpleader suit is a suit in which the real dispute is between the defendants only and
the plaintiff is not interested in the subject matter of the suit. The plaintiff brings a suit in
which he states that he has certain property which is claimed by the defendants adversely
to each other. In a situation whereby two or more people claiming the ownership right of a
certain property which is in possession of another person, the person who is in the
possession of that property may seek the help of the court to decide who is the rightful
owner of the disputed property. In law, the process which allows that person to institute
the case is called interpleader proceedings, and the case filed is called interpleader .
It’s defined in section 88 and order 35 of CPC. When the plaintiff on behalf of the
defendant filed a suit in the court for choosing the actual owner of the property, then it is
called an interpleader suit. When the plaintiff is not the real owner of the property he files
the suit to know the real owner.
Example:
For instance, X is in possession of some goods which are claimed by Y as well as Z. X
does not hold any interest in the goods and is willing to deliver the goods to the rightful
owner of the goods. X may institute an interpleader suit. Now, the court will decide the
rightful owner between Y and Z.
Object:
The main object to filing an interpleader suit is to get claims of rival defendants
adjudicated. It is a process wherein the plaintiff calls upon the rival claimants to appear
before the court and get their respective claims decided. The suit is filed when the object
is to be claimed by the defendants. The claim of the suit gets adjudicated. The suit is filed
when any person in any condition cause death and has left some of the property without
transferring to other members of the family then that other family member has to claim
the property or money from the bank and then the bank has to become claimant to file a
suit in the court to decide whomever the property has to be transferred. This type of suit
was filed in the Res Judicata court.
Interpleader suit and its condition
Conditions of Interpleader suit
● Debt, money, property either movable or immovable in the dispute.
● Two defendants are there in the suit.
● Both defendants can claim each other for the property or money
● The person who has to pay the debt to the defendant is not valid for any interest.
● The Claimant is willing to pay the debt, or some amount of money, or property to
the defendant.
● Suits are not pending in this.
● This suit cannot be filed twice if the judgment is given in Res judicata.
The plaintiff who sues the defendant cannot claim any interest in the subject matter in
dispute in extra. They get charges or costs for the interpleader suit. There were many
defendants in the interpleader suit to claim the debt or property. There is no collusion
between the plaintiff and defendant. Only collusion between defendants. Where the
plaintiff is capable of paying or is capable to place in the custody of the court the plaintiff
has to pay or place it before he is entitled to any order in the suit. When the defendant
sues the plaintiff in an interpleader suit in the same subject-matter in which the suit is
already pending which is filed by the plaintiff. The proceeding will continue but against
the plaintiff.
Procedure:
The procedure to file an interpleader suit has been laid out in Order 35 of the Civil
Procedure Code. The following additional facts must be stated in the plaint of an
interpleader suit:
● The plaintiff claims no interest in the subject matter in dispute other than the
charges and cost.
● The claims have been made by the defendants severally.
● There is no collusion between the plaintiff and any of the defendants.
● The suit can only be filed by the plaintiff and the plaintiff can be a bank in any
subject-matter of the interpleader suit. No landlord can sue to his tenant or no
family member can sue the defendant.
● All the things are kept in the custody of the court
● There were many defendants in the interpleader suit
● An Interpleader suit is filed in the subject-matter of debt, money, property,
movable or immovable property.
● The plaintiff from whom the property is claimed, must not claim other charges or
costs who is ready to pay or deliver it to the rightful claimant.
In the first hearing court involved in the proceedings to know the contention of the
parties. In an interpleader suit the plaintiff only is allowed to file a suit against the defendant when the defendant claims the debtor property from the plaintiff. Plaintiff is
not in the direct possession of the property. He filed the suit on behalf of the defendant.
After the suit is filed the plaintiff gets free from all liability of the suit. He gets
substantive relief. The plaintiff pays the court for the suit which is filed in the court. That
amount never comes into dispute. After paying the court, the plaintiff gets free from all
liability. Where the decision is given in favor of both parties then the opening of the
packet becomes more important for the interest of both parties.
It was held in Jagannath vs Tulka Hera (1908) that a suit does not become an interpleader
suit simply because the plaintiff requires the defendants to interplead with each other on
one of the plaint’s prayers.
Non-appearance of claimant
In any case, any party fails to come on the date of proceeding even if his statement gets
recorded already then also proceeding to get adjourned. He will be dismissed from the
suit. And also his amount gets deducted. The plaintiff can raise an issue in case one of the
parties fails to give the payment.
Sub Rule 3
Once suit proceedings have started with the provisions of rule 10 and rule 17 then the
court can allow the amendment of the plaintiff by the inclusion of any property in the
subject-matter of the suit and by adding certain parties in the suit as a defendant.
According to rule 10 of orders, 1 says that if the suit is filed in the name of the wrong
plaintiff and if the court doubted the wrong plaintiff. The court can consider the mistake
as a Bonafede mistake in any stage of the trial. The court can add new parties in the suit as
a plaintiff or defendant.
Procedure where the defendant is suing the plaintiff
When the defendant sues the plaintiff in the same subject-matter, even the previous suit is
pending the other suit will be filed in the court and suit is against the plaintiff in the
previous suit also. Cost may be the same as for the plaintiff which he has to pay to the
court.
Who cannot file an interpleader suit?
Defendants cannot file the interpleader suit because defendants are the claimant who
claims the property or debt from the plaintiff. The plaintiff is only allowed to file a suit in
the court. And the plaintiff only pays the cost of the suit in the court. But defendants only
litigate in court in the subject-matter. Defendants are free from all liability after filing the
suit in the court.
Interpleader suit by agents
An Agent cannot file an interpleader suit against his owner or the party. He cannot even
claim anything from the tenant and landlord.
Interpleader suit by tenants
No agents can sue their principals and no tenants can sue their landlords in the
interpleader suit for compelling him to interplead with another person making a claim
related to the tenants through the landlord. If the other person is claiming the property
with the old landlord who has no direct possession of the property and tried to ask for the
rent with the tenant. Then the tenant can file an interpleader suit.
Charge for plaintiff cost
Where the thing claimed is capable of being paid into court or placed in the custody of
the court, the plaintiff may be required to pay or place it before he can be entitled to any
order in the suit.
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