Where two or more persons claim adversely to one another the same debt, sum of money or other property, movable or immovable, from another person, who claims no interest therein other than for charges or costs and who is ready to pay or deliver it to the rightful claimant, such other person may institute a suit of interpleader against all the claimants for the purpose of obtaining a decision as to the person to whom the payment or delivery shall be made and of obtaining indemnity for himself: provided that where any suit is pending in which the rights of all parties can properly be decided, no such suit of interpleader shall be instituted.
In every interpleader suit the plaint shall, in addition to other statements necessary for plaints, state—
(1) That the- plaintiff claims no interest in the subject-matter in dispute other than for charges or costs;
ADVERTISEMENTS:
(2) The claims made by defendants severally; and
(3) That there is no collusion between the plaintiff and any of the defendants. (Order XXXV, Rule 1).
Image Source: thestudyabroadportal.com
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 so pay or place it before he can be entitled to any order in the suit. (Order XXXV, Rule 2).
ADVERTISEMENTS:
Procedure at first hearing:
(1) At the first hearing of the suit the court may : (1) declare the plaintiff discharged from all liability to the defendant in respect of the thing claimed, award him his costs and dismiss him from the suit; (b) if it thinks that justice or convenience so require,, retain all parties until the final disposal of the suit. [Order XXXV, Rule 4(1)],]
(2) Where the court finds that the admissions of the parties or other evidence enable it to do so, it may adjudicate the title to the thing claimed. [Order XXXV, Rule 4(2)].
(3) Where the admissions of the parties do not enable the court so to adjudicate, it may direct—
ADVERTISEMENTS:
(a) That an issue or issues between the parties be framed and tried, and
(b) That any claimant be made a plaintiff in lieu of or in addition to the original plaintiff, and shall proceed to try the suit in the ordinary manner. [Order XXXV, Rule 4 (3)].
Order XXXV, Rule 4, must be followed where there is a dispute as to right to collect rent after the death of the landlord. The court could allow the tenant to deposit the rent and direct the claimants to file separate suit to decide the title.
Interpleader suit:
Where order granting permission to open sealed over in the presence of both parties. As opening of packet was considered to be essential in the interest of both parties, hence defendant had also reported no objection if the Court permitted the same. Held that objection for opening of sealed cover by defendant at stage of recording evidence on ground that Court had not adopted proper procedure under C.P.C., Order XXXV, Rule 4 could not be allowed.
Agents and tenants:
The above provisions do not enable agents to sue their principals or tenants to sue their landlords, for the purpose of compelling them to interplead with any persons other than persons making claim through such principals or landlords. (Order XXXV, Rule 5).
Illustrations:
(a) A deposits a box of jewels with B as his agent. C alleges that the jewels were wrongfully obtained from him by A, and claims them from B. B cannot institute an interpleader suit against A and C.
(b) A deposits a box of jewels with B as his agent. He then writes to C for the purpose of making the jewels a security for a debt due from himself to C. A afterwards alleges that C’s debt is satisfied, and C alleges the contrary. Both claim the jewels from B. B may institute an interpleader suit against A and C.
An agent of two joint principals can file an interpleader suit where they make competing claim against the agent.
Charges for plaintiff’s costs:
Where the suit is properly instituted, the court may provide for the costs of the original plaintiff by giving him a charge on the thing claimed or in some other effectual way. (Order XXXV, Rule 6).
It is clear from the provisions mentioned above that the main characteristic of an interpleader suit is that several claimants are deemed to be claiming the title to the property adversely to one another. In order to enable a party to file an interpleader suit the party should be in a position to walk out of the suit with a mere claim for costs and shall not be entitled to have any other matter of contest between himself and the claimants.
If the plaintiff in such a suit is found to have any interest in the subject-matter of the suit or if he is found to have colluded with one of the claimants, then the right to file an interpleader suit cannot be availed of by him. If the plaintiff in an interpleader suit is shown to be interested in defeating the claim of one of the claimants and also that he is in collusion with the other claimant, there is no justification for allowing the plaintiff to file the interpleader suit.