What is INTERPLEADER SUIT? – Complete Details

For understanding what is Interpleader Suit we need to first understand about Interplead.

  Interplead means “two parties litigate with each others”. In other words, where two defendants litigating with each other to find out who is the rightful claimant of the thing for which they are pleaded.

 Meaning

To Interplead means ” to litigate with each other to settle a point which concerning a third party”.

Nature and scope of Interpleader Suit

 An interpleader suit is a suit in which the real dispute is not between a plaintiff and a defendant but between the defendants only who interplead against each other, unlike in an ordinary suit.

  •  Here the plaintiff is not really interested in the subject matter of the suit.

    According to section 88 of the Civil Procedure Code 1908 (CPC) –

” Where two or more persons claim adversely to one another the same debts ,sum of money or other   property , movable or immovable from another person’s, 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.

 Conditions

Before institution of an interpleader suit, the following conditions must be satisfied –

(1) There must be some debt , sum of money  or other property movable or immovable in dispute.

(2) Two or more persons must be claiming together it adversely to one another.

(3) 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 such thing to the rightful claimant.

(4) There must be no suit pending wherein the rights of rival claimants can be property adjudicated.

 Illustration

‘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.

PROCEDURE FOR INTERPLEADER SUIT U/O 35 CPC

In Every Interpleader suit the plaint must also state –

(1) That the plaintiff claims no interest in the subject matter in dispute other than the charges or costs.

(2) The claims have been made by the defendants severally.

(3) That there is no collusion between the plaintiff and any of the defendants.

  •  In such suit the court may order the plaintiff to deposit the amount or the property in the custody of the court and provide costs incurred by him by giving him, a charge on the thing claimed.
  •  The court may declare at the first hearing that the plaintiff is discharged from all the liability by award him costs and dismiss him from the suit.

WHO CAN NOT FILE INTERPLEADER SUIT?

An agent cannot sue again his principal, or a tenant against his landlord, for the purpose of compelling them to interplead with persons other than persons claiming through such principals or landlords.


Also read :

Decree

Deemed decree

 

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