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Introduction:
In general sense suits are instituted for disputes between plaintiff and defendant. Sometimes real disputes are arising between the defendants. Here, plaintiff has no interest. In other word, it can be said that plaintiff has no interest other than for charges or costs in the subject matter. Mainly this type of suits arises when two or more persons claim anything from another person and the person has no claim on that thing and also ready to deliver it to the rightful claimant. When such another person institutes a suit against those claimants, this is called an interpleader suit.
Definition:
An interpleader suit is a suit where the real dispute is between
the defendants only and the defendants plead against each other instead of
pleading against the plaintiff.
Interpleader Suits under the
Code of Civil Procedure, 1908:
Matters relating to interpleader suits are governed by Section 88 of The Code of Civil Procedure, 1908 and Order 35 of the same Act. According to Section 88, where two or more persons claim adversely to one another the same debt, sum of money or other property whether it is movable or immovable in nature 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 obtaining indemnity for himself. Where any suit is pending in which the rights of all parties can properly be decided, no such suit of interpleader shall be instituted.
Conditions for Instituting an
Interpleader Suit:
1. There must be same debt, sum of money or other property whether movable or immovable in nature in the dispute.
2. Two or more persons must be claiming it adversely to one another.
3. The person from whom such debt, sum of money or other property is claimed must not claim interest therein other than charges and costs. Such person must be ready and willing to pay or deliver the debt, some of money or property claimed to the rightful claimant.
4. There must be no suit pending wherein the rights of rival claimants can be properly adjudicated.
Plaint in Interpleader Suits:
In case of instituting an interpleader suits, in addition to other statements necessary, the plaint shall also contain that —
1. The plaintiff claims no interest in the subject matter in dispute other than for charges or costs.
2. The claims made by the defendants severally; and
3. There is no collusion between the plaintiff and any of the defendants.
Where the thing claimed is capable of being paid into Court or
placed in the custody of the Court, the plaintiff has to pay or place the thing
before the Court. If any of the defendants actually suing the plaintiff in
respect of the subject matter of such suit, the Court in which such suit is
pending shall on being informed by the Court in which the interpleader suit has
been instituted, stay the proceedings as against the plaintiff.
Procedure at First Hearing:
At the first hearing of the suit, the Court may either declare that
the plaintiff is discharged from all liability to the defendants in respect of
the thing claimed, award him his costs, and dismiss him from the suit or if it
thinks that justice or convenience so require, retain all parties until the
final disposal of the suit.
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.
Where the evidence and admissions of the parties does not enable the Court to
adjudicate, it may framed issues between the parties and tried. Any claimant
can be made a plaintiff in lieu of or in addition to the original plaintiff,
and shall proceed to try the suit in ordinary manner.
Agents and Tenants may not
Institute Interpleader Suits:
A tenant and agent can’t compel their landlord or principal to
interplead with any person other than the person making claim through such
principal or landlord.
For example: A deposits
a box of jewels with B as his agent.
C alleges that the jewels were
wrongfully obtained from him by A,
and claim them from B. B can’t institute an interpleader suit
against A and C.
Conclusion:
Interpleader suits are mainly instituted for the purpose of giving
back the disputed thing to its real owner. It must be noted here that the
plaintiff has no interest in the disputed thing and he is willing to giving
back the thing. 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 manner.
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