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Aligarh Muslim University: Centre Jangipur Murshidabad

The document discusses an interpleader suit filed by Md. Tausif Raza regarding the topic of "Interpleader Suit and Its Object" under the guidance of his professor Ms. Shagufta Yasmin for his 5th semester law assignment at Aligarh Muslim University Centre Jangipur Murshidabad. It includes an introduction, acknowledgements, contents, and sections discussing the origins and conditions of an interpleader suit under the Code of Civil Procedure.
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0% found this document useful (0 votes)
46 views18 pages

Aligarh Muslim University: Centre Jangipur Murshidabad

The document discusses an interpleader suit filed by Md. Tausif Raza regarding the topic of "Interpleader Suit and Its Object" under the guidance of his professor Ms. Shagufta Yasmin for his 5th semester law assignment at Aligarh Muslim University Centre Jangipur Murshidabad. It includes an introduction, acknowledgements, contents, and sections discussing the origins and conditions of an interpleader suit under the Code of Civil Procedure.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ALIGARH MUSLIM UNIVERSITY

CENTRE JANGIPUR MURSHIDABAD

Session: 2019-20

TOPIC

INTERPLEADER SUIT AND ITS OBJECT

SUBJECT

CODE OF CIVIL PROCEDURE

Submitted to Submitted by
Ms. Shagufta Yasmin MD. Tausif Raza
Assistant Professor, Faculty of Law B.A.LL.B.(Hons.) 5th Semester
AMU, Centre Jangipur Murshidabad 17 BALLB-17
GI-6429
CERTIFICATE

This is to certify that Md. Tausif Raza of BALLB Vth semester of Aligarh Muslim University
Centre Murshidabad has completed his assignment of Code Of Civil Procedure on the topic
“INTERPLEADER SUIT AND ITS OBJECT” under guidance of Ms. Shagufta Yasmin .

Date:
Sign:
ACKNOWLEDGEMENTS

I Md Tausif Raza would like to express my special thanks o f gratitude to my teacher

Ms. Shagufta Yasmin , who gave me the golden opportunity to do this wonderful assignment on
the topic “INTERPLEADER SUIT AND ITS OBJECT” which also helped me in doing a lot of
research and I came to know about so many new things I am really thankful to him.
Secondly I would also like to thank my friends who helped me a lot in finalizing this project.
Last but not the least I would like to thank almighty for the constant blessing on me.

Md. Tausif Raza


CONTENTS

1. Introduction
2. Origins in common law and equity
3. Interpleader suit
4. Interpleader suit and its condition
5. Plaint in an Interpleader Suit
6. Payment of the thing claimed into Court
7. Procedure where Defendant is suing the Plaintiff
8. Procedure at First Hearing
9. Who cannot file an Interpleader Suit?
10. Charge for Plaintiff’s Costs
11. Judicial pronouncement
12. Conclusion
13. Bibliography
1. Introduction

Section 88 and order XXXV of the Civil Procedure Code 1908 deals with the provision of
interpleader suit. The interpleader suit is a suit in which several claimants who are claiming the
property against each other. In such type of suit the matter in dispute is the title to the movable or
immovable property or money which is claimed by two or more persons against each other. The
main object of an interpleader suit is to get claims of revel dependent and dedicated.

An interpleader suit is one in which the real controversy/dispute is not between the plaintiff and
the defendant, but is rather between the defendants only who inter-plead against each other. The
hallmark of an interpleader suit is the fact that in an interpleader suit, the plaintiff is not really
interested in the subject-matter of the suit. The primary and the foremost object of an
interpleader suit is to have the claims of rival defendants adjudicated, for in an interpleader suit
there must be some debt or some money or other property in dispute between the defendants
only. The plaintiff in an interpleader suit must be in a position of impartiality/ non-arbitrariness.

The Halsbury’s Laws of England (Fourth Edition), Volume 37, Para 264 (at p.200) states that
“Where a person is under liability in respect of a debt or in respect of any money, goods or
chattels and he is, or expects to be sued for or in respect of the debt or money or those goods or
chattels, by two or more persons making adverse claims thereto, he may apply to the court for
relief by way of interpleader.”

When the plaintiff on behalf of the claimant filed a suit for choosing the actual owner of the
property then it is called an interpleader suit. When a Plaintiff is not in the direct possession of
the property or thing, he files a suit. Petitioner has the indirect possession of the property. There
is more than one defendant in this suit. Because in this suit more than one defendant can file the
suit for the claim of property. When the actual owner of the property dies without transferring
the property to anyone then the property transfer becomes the interpleader suit. Other than that
the plaintiff may file a suit for the movable or immovable property to deliver the property to the
defendant because more than one person has filed a suit for the claim of property. Debt is
required in this suit or some amount of money for the dispute which is between two defendants.
Defendants can claim some debt from another defendant of the property. Only the plaintiff is the
one who cannot claim any cost and is also ready to deliver the property to the defendants.
Interpleader is defined in section 88 of the Civil Procedure Court .

Examples

1. Sanjeev has a 2 BHK flat in the co-operative colony. He has two wives. Because of
some diseases, he caused to die. After his death, his wives claimed the property. The

father of Sanjeev filed a suit in the court to decide the actual owner of the property.

2. Akhil has 2 crores fix deposit. He has two wives and both wives have 1 child. Both of
them claim the money for their child maintenance. The bank filed a suit in the court

to know the order related to the real owner of the money for the maintenance of the

child.
2.Origins in common law and equity

Interpleader had its origins as a civil procedure at common-law, which was later adopted and
expanded by the Court Of Chancery in its equitable jurisprudence. The common law procedure
became obsolete over time and fell into disuse, but it remained active in the courts of equity.[2]
It originally applied to baileess subject to multiple actions of detinue and privityy was required
either between the parties or in detinue, in order for the defendant to be able to sue
for garnishment.
In contrast, the equitable bill of interpleader required that:

1. The same thing, debt, or duty must be the res claimed by all the claimants;
2. All the adverse titles or claims must be dependent or derived from a common source;
3. The stakeholder must not have or claim any interest it the res,
4. The stakeholder must have incurred no independent liability to any claimant, i.e. he must
be perfectly indifferent between them.
3. Interpleader suit

Section 88 of the Code of Civil Procedure, 1908: Section 88 of the Code of Civil Procedure,
1908, states that, where two or more persons claim adversely to one another some debt, sum of
money or other property (moveable or immoveable) from another person, who in fact does not
claim any interest in that sum of money or property except the cost or charges incurred by him in
instituting an interpleader suit and/or safeguarding the property and is ready and willing to pay or
deliver the sum of money or property to the rightful claimant, then, such another person can file
an interpleader suit. The pre-condition for filing an interpleader suit is that- on the date of
institution of an interpleader suit there must be no suit pending in which the rights of the rival
claimants can be properly decided.

In the case of Asan v. Saroda1, it was held that where the defendants do not claim adversely to
each other nor does the plaintiff admit the title of one of the defendant or is willing to pay or
deliver the property to him, the suit is not interpleader
4. Interpleader suit and its condition

• Conditions of Interpleader suit

1. Debt, money, property either movable or immovable in the dispute.

2. Two defendants are there in the suit.

3. Both defendants can claim each other for the property or money.

4. The person who has to pay the debt to the defendant is not valid for any interest.

5. The Claimant is willing to pay the debt, or some amount of money, or property to the

defendant.

6. Suits are not pending in this.

7. This suit cannot be filed twice if the judgment is given in Res judicata well.

• Test of applicability

The test of applicability is done during the suit when the pleading is going on. This test is done

by a court of law, after this test they decide about the next owner of the property or money. This

test is very important for the interpleader suit. Because in an interpleader suit one or more

defendants are there. In a test of applicability, some questions are asked from the defendant

during the pleading.


5. Plaint in an Interpleader Suit

Order XXXV, Rule 1 of the Code of Civil Procedure, 1908 requires the interpleader to state in
his plaint that the plaintiff claims no interest in the subject-matter of the suit and the claims put
forth by the defendants severally. The interpleader must also categorically state that there is no
collusion between the parties to the suit, that is, the plaintiff and any of the defendants. The
interpleader must specify in the plaint, the claims made by the defendants severally, and should
express his willingness to bring the property (if it is moveable) before the court. The interpleader
in the prayer clause of his plaint must pray the Hon’ble court to grant him the cost incurred by
him in instituting the suit and also any other charges incurred by the interpleader in maintaining
and/or safeguarding the property in dispute, which the defendants claim adversely to one
another.

How to file an interpleader suit?

1. The suit can only be filed by the plaintiff and the plaintiff can be a bank in any subject-
matter of interpleader suit. No landlord can sue to his tenant or no family member can sue
the defendant.

2. All the things are kept in the custody of the court

3. There were many defendants in the interpleader suit

4. An Interpleader suit is filed in the subject-matter of debt, money, property, movable or


immovable property.

5. The plaintiff from whom the property is claimed, must not claim other charges or cost
who is ready to pay or deliver it to the rightful claimant.
6. Payment of the thing claimed into Court

Order XXXV, Rule 2 of the Code of Civil Procedure, 1908 provides that where a thing claimed
is such that it is capable of being paid into the court, then the plaintiff/interpleader may be
required to pay such amount or thing before the court. Thus, the court has discretion to make
such orders as regards the subject matter in dispute and the party concerned will be bound to
obey the order before it can ask for any relief in the suit

7. Procedure where Defendant is suing the Plaintiff

Order XXXV, Rule 3 of the Code of Civil Procedure, 1908 states that where any of the
defendants in an interpleader suit is actually suing the plaintiff in respect of the subject-matter of
such suit, the court in which the suit against the plaintiff is pending, on being informed by the
court in which the interpleader suit is pending, shall stay the proceedings in that suit as against
him.

In the case of Satyanarain v. District Judge, Tonk & Ors

Iit was held that it is not as if that once the suit for interpleader is filed the other suit has to be
stayed automatically; in order to invoke the power under Order XXXV, Rule 3 of the Code of
Civil Procedure, 1908 the plaintiff (or interpleader) is duty bound to establish a prima facie case
in his favour
8. Procedure at First Hearing

Order XXXV, Rule 4 of the Code of Civil Procedure, 1908 empowers the court to declare at the
first hearing itself that the plaintiff is discharged from all liabilities and as a necessary corollary
the court can award the plaintiff his costs and dismiss him from the suit. However, if the court is
of the opinion that justice, propriety and convenience requires that all parties to the suit be
retained, then the court shall not discharge the plaintiff till the final disposal of the suit. If the
court finds it necessary then it can direct that certain other issues be framed and tried along with
other issues albeit the suit, and that any claimant (that is, defendant in the interpleader suit) be
made a plaintiff in lieu of or in addition to the original plaintiff

• Non-appearance of claimant

In any case, any party fails to come on the date of proceeding even 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
9. Who cannot file an Interpleader Suit?

Order XXXV, Rule 5 of the Code of Civil Procedure, 1908 states that an agent cannot sue his
principal and similarly a tenant cannot sue his landlord for the purpose of compelling such
principals/landlords to interplead with persons other than the ones claiming through them.
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.

In the case of N.M.N. Duraiswami Chettiar v. Dindigul Urban Co-operative Bank Ltd,
It was held that on a dispute as to the ownership of the deposit arising between the customers
and the third person, an interpleader suit filed by the bank would not come within the prohibition
of Order XXXV, Rule 5 of the Code of Civil Procedure, 1908

10. Charge for Plaintiff’s Costs

Order XXXV, Rule 6 of the Code of Civil Procedure, 1908 states that when an interpleader suit
is properly instituted then the court can provide for the costs to be given to the original plaintiff
either by giving him a charge on the thing claimed by the defendants/claimants, or in some other
equally efficacious way.

The court will decide if a suit is an interpleader suit by deliberating on the prayers in the plaint.
In the case of Jagganath v. Tulka Hera8 , the hon‟ble Bombay high court held that 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.
11. Judicial pronouncement

Smt. Mohan Devi V. Gokal And Anr

The tenant filed a case against the landlord in court under an interpleader suit for threatening

them to pay the rent of the house. But according to the tenant, he is paying the rent according to

the date and time. Defendant 1 claimed that he lowers the rent as the rent is 250/- per month but

he lowers the rent to 200/- per month. But after the relevant fact, it has been noticed that

defendants tried to threaten the tenant to pay the rent. When the written statement is given by the

defendant he admitted that tenant is paying 250/- per month. But according to order 33 rule of 5

the suit is not maintainable. The RC and E officer observed that the tenant did not give any

evidence related to his shop and it is clearly mentioned in the evidence that the tenant is not the

owner of the shop and had let it out to one Alladia. He accordingly declared that the shop was

vacant.

Ashok Leyland v. State of Tamil Nadu

The Hon'ble Supreme Court in this case settled the legal matter that no interpleader suit could be
been legally entertained by the trial court for the purposes of determination of title of the parties
under Order XXXV, Rule 5 and in case the judgment and decree passed in the interpleader suit is
held to be a decision with regard to the title claimed by the parties over the property in question,
the suit itself would be without jurisdiction. Even if the trial court has held that it has jurisdiction
to decide such an interpleader suit, the said finding would not be said to be res judicata inasmuch
as wrong decision on the jurisdictional issue would not attract the principles of res judicata.
Hanumanth Vajhula Jagannadha v. Vajhula Annapurna Rajeswaramma

7 Questions as to excess execution where property not included in or covered by the decree is
delivered in execution of the decree, there arises a situation which, in law is called 'action in
excess of the decree'. In such cases the proper remedy for the judgment debtor to recover the
property delivered in excess of the decree is by an application under Section 47 of Code of Civil
Procedure and not by a separate suit

Neeraj Sharma vs The District Sangpur Khadi Gram

In this case, the hon‟ble Punjab and Haryana High Court held that According to the Rule 5
provides that the agents and tenants cannot institute interpleader suits against principal and
landlords. A tenant cannot sue his landlord for compelling him to interplead with any persons
other than persons making claim through such landlord. If the other person is claiming the
property through the previous landlord and then asking for the rent from the tenant, then to settle
such different claims by two or more persons, the tenant can file interpleadersuit, but if the other
person is claiming the right and interest in the property independently without any reference to
the previous landlord and claiming the rent from the tenant, then the interpleader suitfiled by the
tenant is not maintainable

Satyanarayan v. District Tonk & Ors

The petitioner has filed a suit against the respondent. But the case gets dismissed by the civil

judge. Then the third petitioner has filed a case against petitioner to recover the rent along with

the profit He filed an interpleader suit. In the judgment of this case the judge dismissed the

application of the petitioner under Order 35 Rule 5 of CPC.


Car and Universal Finance Limited v. Caldwell

The respondent is the owner of the Jaguar car. The third person has forced Mr. Caldwell to sell

the car for a cheque amount of 965 dollars and a deposit of 10 dollars. Respondent agrees to sell

the car and he sold the car and got the cheque and when he tried to convert the cheque into cash.

The cheques got dishonoured. The respondent goes to the police about the whole incident and

also informed this incident to the Automobile Association. The respondent told that Mr. Norris

has sold the car to different dealers. The judgment is given by the high court. The court said that

the contract was validly rescinded. It was so without communication, but through an unequivocal

act of election, demonstrating Caldwell no longer wishes to be bound


Conclusion

I would conclude my topic by saying that interpleader suit means the suit which was filed by the
plaintiff on behalf of defendants because the actual owner of the property or debt dies and
plaintiff who is in the indirect possession of the property can file a suit on behalf of defendants,
who claim for the ownership of the property. Because this has one more than the defendant.
There is a collusion between defendants. Defendants only litigate in court in front of judges.
Plaintiff has no direct possession of the property he is only there to sue in court to decide who
will be the actual owner of the property or debt. He is liable for the amount of money for the suit
filed. An interpleader suit is defined in the Civil Procedure Court. Interpleader suit can only be
file under Res Judicata. This suit cannot be reviewed in any other court of law. This suit once
reviewed in the court of law then it cannot be reviewed twice
BIBLIOGRAPHY
1. http://journal.jusimperator.org/wp-content/uploads/2018/10/NIKHIL-JAISWAL.pdf
2. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2880116
3. https://blog.ipleaders.in/what-is-interpleader-suit/
4. http://www.lawyersupdate.co.in/legal-articles/interpleader-suits/
5. https://www.srdlawnotes.com/2018/10/interpleader-suit-section-88-order-35.html
6. https://www.lawnotes4u.in/2019/07/interpleader-suits-section-88-with-order-35-of-CPC.html
7. https://tilakmarg.com/opinion/interpleader-suits-section-88-read-with-order-xxxv-of-the-code-
of-civil-procedure-1908-analysis/

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