INTERPLEADER SUITS

B.A. LL.B. (INTEGRATED LAW DEGREE COURSE)

CODE OF CIVIL PROCEDURE (VI SEMESTER)

“PROJECT WORK”

“INTERPLEADER SUITS”

SUBMISSION TO: SUBMITTED BY:

MR. DHEERAJ JHA VIVEK GAHLYAN

FACULTY OF CODE OF CIVIL PROCEDURE 17RU11032

DESIGNATION: ASSISTANT PROFESSOR SESSION:-2017-2022

SEMESTER:-VI

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ACKNOWLEDGEMENT

I take this opportunity to express our humble gratitude and personal regards to MR. DHEERAJ
JHA for inspiring me and guiding me during the course of this project work and also for his
cooperation and guidance from time to time during the course of this project work on the topic
“INTERPLEADER SUITS”.

Date of Submission: 20-05-2020

Name of Student: VIVEK GAHLYAN

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TABLE OF CONTENTS

Research Methodology ...................................................................................................................... 4

Aims and Objectives ...................................................................................................................... 4

Research Plan ................................................................................................................................ 4

Research Question ......................................................................................................................... 4

Method of Writing ......................................................................................................................... 4

Sources of Data ............................................................................................................................. 4

INTRODUCTION............................................................................................................................. 5

GENERAL CONCEPT OF SUIT ...................................................................................................... 6

WHERE INTERPLEADER SUIT MAY BE INSTITUTED .............................................................. 7

PLAINT IN THE INTERPLEADER SUIT ...................................................................................... 10

PAYMENT OF THING CLAIMED IN THE COURT ..................................................................... 11

PROCEDURE WHERE DEFENDANT IS SUING PLAINTIFF. .................................................... 12

PROCEDURE AT FIRST HEARING. ............................................................................................ 13

AGENTS AND TENANTS MAY NOT INSTITUTE INTERPLEADER SUIT. .............................. 15

CONCLUSION ............................................................................................................................... 18

BIBLIOGRAPHY ........................................................................................................................... 19

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RESEARCH METHODOLOGY

AIMS AND OBJECTIVES

The aim of the assignment is to present a detailed study of the topic “INTERPLEADER SUITS”
forming a concrete informative capsule of the same with an insight into its relevance in the
CIVIL LAWS in India.

RESEARCH PLAN

The researchers have followed Doctrinal method

RESEARCH QUESTION

Whether the Environmental Hazard is deteriorating the Environment?

METHOD OF WRITING

The researcher has used both a descriptive and analytical method of writing in order to
understand the issues better. The researcher has also relied on case law, to get an in depth
understanding of the subject. The method of writing followed in the course of this research
project is primarily analytical.

SOURCES OF DATA

The researcher has used secondary sources in order to obtain sufficient data for this project,
namely,
 Online Research Portals
 Articles

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 INTERPLEADER SUITS

INTRODUCTION

An interpleader suit is one in which the real dispute is between the defendants only and the
defendants interplead, that is to say plead against each other instead of pleading against the
plaintiff as in ordinary suit. In every interpleader suit, there must be some debt or sum of money
or other property in dispute between the defendants only, and the plaintiffs must be a person
who claims no interest therein other than for charges or costs and who is ready to pay or deliver
it to such of the defendants as may be declared by the court to be entitled to it.

Who claims no interest other than for charges or costs? These words indicate that the plaintiff
in an interpleader suit must be in a real position of impartiality. 1 A railway company which
claims no interest in goods in its possession other than a lien on the goods for wharf age,
demurrage and freight, may institute an interpleader suit where the goods are claimed by two
persons adversely to each other.2

A hold in his hands a sum of Rs. 5,000 which is claimed by B and C adversely to each other.
A institutes an interpleader suit against B and C. It is found at the hearing that A had entered
into an agreement with B before the institution of the suit that if B succeeded in the suit he
should accept from A Rs. 4,000 only in full satisfaction of his claim. Here A has, by virtue of
the agreement, an interest in the subject matter of the suit, and he is not, therefore, entitled to
institute an interpleader suit. The suit must be dismissed. 3

A party who has taken an indemnity from one of the claimants is not entitled to file an
interpleader suit.4 A suit is not necessarily an interpleader suit and subject to the provisions of
this section, merely because one of the reliefs claimed by the plaintiff requires the defendants
to interplead together concerning certain claims. The court must have regard to all the prayers
of the plaint to determine the exact nature of the suit.5 A plaint in an interpleader suit can be
amended by inclusion of new properties and joinder of new parties. 6

1
Sambiah v SubbaReddiar (1951) 1 MLJ353.
2
Bombay Baroda Rly.co. v Sasoon (1894) 18 Bom 231.
3
Murrietta v South America Co. (1893) 62 LJQB 396.
4
HariKarmakar v Robin AIR 1927 Rang 91
5
Juggannath v Tulkakera (1908) 32Bom 592.
6
Raja BhagwatiBaksh Singh v Civil Judge AIR 1961 All 599.

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GENERAL CONCEPT OF SUIT

The term suit is not defined under the in the C.P.C. but by various decisions it can be said that
“Suit ordinarily means a civil proceeding instituted by presentation of a plaint. Civil suit is the
institution of litigation for enforcement of civil rights (or substantive rights, it may be against
state or individual). A suit is resulted into decree. Without suit, there cannot be a decree.

There are four essentials of a suit 7

1. Name of Parties (there must be two opposing parties) - In a suit there must be at least
two parties the plaintiff & the defendant.

2. Cause of Actions – it is a set of facts or circumstances that a plaintiff is required to

prove. The cause or the set of events or circumstances which leads or resulted into
presentation of a plaint or filing a suit. – lay man language

Legally – The cause of action means every fact which is necessary for the plaintiff(s)
to be proved with a view to obtain a decree in his favor.

3. Subject matter – there must be a subject matter (with what respect or aspect civil
dispute is).

Section-9. Courts to try all civil suits unless barred. The Courts shall (subject to the
provisions herein contained) have jurisdiction to try all suits of a civil nature excepting
suits of which their cognizance is either expressly or impliedly barred.

4. Relief claimed by the plaintiff – no court will give relief unless relief is specifically
claimed by the party

Relief is of two types-

1) specific relief and.

2) alternative relief.

7
P.M.Bakshi, Supplement to Mulla’s Code of Civil Procedure (14th ed., Bombay: N.M.Tripati Private Limited,
1992).

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Jurisdiction

Jurisdiction means the extent of power of a court to entertain suits and applications. It signifies
the power, authority, competency of the court to adjudicate the disputes presented before it.

1. Territorial Jurisdiction - Every court has fixed geographical boundaries

2. Pecuniary Jurisdiction -refers to the value of cases that can be presented before for
adjudication
3. Jurisdiction relating to subject matter - It is power and authority of a court to try a
particular type of suit
4. Original Jurisdiction – Exercise of the original jurisdiction, court tries original suits
instituted.
5. Appellate Jurisdiction – In exercise of the appellate jurisdiction, the court hears
appeals from decree and order passed by subordinate courts.

Note: - Certain courts which only have original jurisdiction but some have original and
appellate jurisdiction both.

Section 10. Stay of suit- No Court shall proceed with the trial of any suit in which the matter
in issue is also directly and substantially in issue in a previously instituted suit between the
same parties, or between parties under whom they or any of them claim litigating under the
same title where such suit is pending in the same or any other Court in India having jurisdiction
to grant the relief claimed, or in any Court beyond the limits of India established or continued
by the Central Government and having like jurisdiction, or before the Supreme Court. 8

Section 11. Res judicata. No Court shall try any suit or issue in which the matter directly and
substantially in issue has been directly and substantially in issue in a former suit between the
same parties, or between parties under whom they or any of them claim, litigating under the
same title, in a Court competent to try such subsequent suit or the suit in which such issue has
been subsequently raised, and has been heard and finally decided by such Court

WHERE INTERPLEADER SUIT MAY BE INSTITUTED

SECTION-88 :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

8
T.L.VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay: N.M.Tripathi Private
Limited, 1967).

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 INTERPLEADER SUITS

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.

"To interplead" means "to litigate with each other to settle a point concerning a third party." 9
An interpleader suit is a proceeding by which a person from whom some persons are claiming
same property, debt or money and who does not himself claim such property debt or money
and neither dispute such debt, such person can file a suit claiming that he is ready to pay or
deliver the said property or money to rightful claimant and can protect himself from legal
proceedings. Meaning thereby, an 'interpleader suit' is a suit in which the real dispute is
between the defendants only.

Conditions to Institute Interpleader Suit

Following conditions must be satisfied to institute an interpleader suit:

(a) there must be some debt, sum of money or other property movable or immovable in dispute;

(b) two or more persons must be claiming it adversely to one another;

(c) the person from whom such debt, money or property is claimed, must not be claiming any
interest therein other than the charges and costs and he must be ready to pay or deliver it to
rightful claimant; and

(d) there must be no suit pending in which the rights of the rival claimants can be properly
decided.

SCOPE AND APPLICABILITY OF THE SECTION.

Where X is under a liability for any debt, sum of money, or other property, claimed adversely
by A or B or more, and he desires protection against a wrong payment or delivery, he can file
a suit under this section. The only way, in fact, in which he can protect himself is by filing such
a suit; otherwise if he litigated with the claimant separately, he would have to pay the costs of

9
T.L.VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay: N.M.Tripathi Private
Limited, 1967).

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the successful claimant. It is necessary that the liability to someone must be admitted and there
must be no collusion and no interest in the subject matter other than for charges or costs.10

Each of the defendants so interpleading is virtually in the position of a plaintiff and his claim
will be governed by the rules of the Limitation Act.11 A reading of S. 88, Civil P. C., would
clearly show that the court does not have jurisdiction to travel beyond what has been admitted
by the plaintiff as due from him/her or it.

In order to determine whether a suit is an interpleader suit under the section the Court
must have regard to all the prayers in the plaint. The mere fact that the plaintiff requires the
defendants to interplead as regards one of the reliefs claimed would not necessarily make it
an interpleader suit.12

Claims must be bona fide and averse to one another.

The claims of the defendants must be bona fide ones, though they need not have a
common origin. The Court must be satisfied that there is a real question to be tried. A
mere pretext of conflicting claims is not sufficient. Where there was no claim or counter
claim between the parties, the provisions of S. 88 would not apply. 13 The defendants must
also claim the money or property adversely to one another from the plaintiff. 14 A decision
given on the claims of the co-defendants in an interpleader suit will operate as res-judicata
between them. 15 It is, however, not necessary that the plaintiff must show the existence of
an apparent title in each of the defendants claiming the property in dispute. Nor is it
necessary that the claims should be legal claims or rights. Equitable claims and rights can be
entertained and given effect to.

Claims must be with reference to the same subject-matter.

The rival claims must be with reference to the same debt, sum of money, or other
property, but not necessarily to the same extent. It is thus not necessary that each of
the defendants should claim the whole of the subject-matter of the suit. Similarly, it is not

11
AIR 1925 Mad 497 (562) (DB).
12
(l908)32 Bom 592 (597) (DB).
13
(1992) 1 Pat LJR 365 (372).
14
AIR 1922 Cal 138 (139) (DB).
15
AIR 1928 Oudh 1:55 (179)

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necessary that the plaintiff should admit the claim as made by the rival claimants in its
entirety. He may ask them to interplead to the extent he admits liability. 16

Order 6, R. 17 applies to an interpleader suit and if it appears from the pleadings that
there is some further property besides the subject-matter of the interpleader suit which is part
of the estate but has somehow been omitted from it, it can be brought within the suit by way of
amendment of the plaint. This section does not prevent such a procedure being adopted.17

Plaintiff should claim no interest in the subject-matter.

The plaintiff must be in an impartial position18. If he has, in some way, identified himself with
one of the parties, in the sense that it will make a difference to him which of the two
succeeds, an interpleader suit will not lie. 19 Thus, a person who has taken an indemnity
from one of the claimants, cannot file a suit under this section, though he will not be
refused relief, if he has merely a natural affinity for one side rather than the other. A right of
lien. e.g., for wharfage, demurrage or freight, is not an interest in the property for the
purposes of this section.20

PLAINT IN THE INTERPLEADER SUIT

R. 1. In every suit of interpleader, the plaint shall, in addition the other statements necessary
for plaints, state-

(a) that the plaintiff claims no interest in the subject-matter in dispute other than for charges
or costs;

(b) the claims made by the defendants severally; and

(c) that there is no collusion between the plaintiff and any of the defendants.

The conditions necessary for the institution and maintainability of the interpleader suit are;

(1) some debt or money or other property, movable or immovable, is due from the plaintiff,

(2) Two or more persons bona fide claim the same from the plaintiff

16
AIR 1966 AndhPra 92 (95).
17
AIR 1961 ALL 559 (561).
18
T.L.VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay: N.M.Tripathi Private
Limited, 1967).
19
AIR 1952 Mad 564 (564).
20
(1894) 18 Bom 231 (234,235).

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(3) Plaintiff should not have any interest therein other than for charges or costs,

(4) He must be prepared to pay or deliver the same to the rightful claimant

(5) The suit must be instituted bona fide without any collusion for a decree as to the rightful
claimant and for obtaining indemnity for himself.

If the amount paid by the plaintiff is less than claimed by the defendants it can’t be said that
the plaintiff claimed an interest in the subject-matter in dispute. An interpleader suit will,
therefore, be maintainable.21 In an interpleader suit it is not open for the Court with limited
jurisdiction to direct the payment to the other party and that such payment is permissible
provided the disputing party establishes the claim in Civil Court. If the plaintiff claims any
interest in the concerned property, the interpleader suit has to fail. Therefore, the Court does
not have jurisdiction to travel beyond what-has been admitted by the plaintiff and direct further
payment or investigation into any question relating to the transaction alleged between the
parties. 22 Tenant cannot file interpleader suit against his landlord.23

PAYMENT OF THING CLAIMED IN THE COURT

R.2. 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.

''May be required to so pay or place it."

Where the subject-matter of the dispute is a chose in action its disposition as the Court
may direct is a sufficient compliance with the rule. The Court has a discretion to make
such orders as regards the subject-matter in dispute and the party is bound to obey the order
before he can ask for any relief in the suit. This is a further condition that will be imposed
upon the party to test his bona fides or disinterestedness. If he is not ready to payor deliver
the property to one of the defendants but disputes his title, the suit is not an interpleader
suit.24 But if the plaintiff complies with the order of the Court he is fully discharged from
liability. Thus, where the plaintiff pays the amount in dispute into-Court for payment to the

21
AIR 1966 AndhPra 92 (94,96).
22
(2000) 3 Mad LJ 428 (429).
23
AIR 2005 (NOC) 412: 2005 (32) All Ind Case 681 (Raj).
24
AIR 1978 Pat 151 (151) (DB)

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right person, but the Court pays it to the wrong person the plaintiff cannot be made responsible
for the mistake of the Court but is fully discharged from liability. 25

In interpleader suit it is not open for the Court with limited jurisdiction to direct that the
amount deposited should be paid over to one or the other party as such payment is permissible
provided the disputing party establishes the claim in Civil Court.

Payment to one of the contestants on security.

The money paid into Court cannot be handed over to one of the parties pending the suit
even on security after the original plaintiff is discharged and one of the rival defendants to
the interpleader suit is made a plaintiff. It must be kept under the control of the Court
available for payment at any time to the successful party.

PROCEDURE WHERE DEFENDANT IS SUING PLAINTIFF.

R. 3. 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
shall, on being informed by the Court in which the interpleader-suit has been instituted, stay
the proceedings as against him; and his costs in the suit so stayed may be provided for in such
suit; but if, and in so far as, they are not provided for in that suit, they may be added to his
costs incurred in the interpleader-suit.

Legislative changes.

Under the old Code proceedings in another suit by the defendant against the plaintiff
could be stayed only after a decree in the interpleader suit. Under the present rule, such
proceedings can be stayed even on the institution of the interpleader suit.

Scope.

Before passing an order of stay under O. 35, R. 3, the Court has to consider the
applicability or otherwise of the bar contained in O. 35, R. 5. And O. 35, R. 3 In other words,
the information must come only through Court and none else. O. 35, R. 3 is not applicable to
the proceedings before Rent Controller as the said proceedings are not proceedings in a suit.
But where ejectment was sought against petitioner tenant of Joint Hindu Family firm by two
sets of persons one being sons of landlord to whom the petitioner paid rent and another being

25
Ssection 88, Code of Civil Procedure,1908.

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purchasers who claimed to have purchased property from widow of thekarta, interpleader suit
at the instance of tenant petitioner was maintainable and was obligatory on the Court to stay
the ejectment proceedings by the filing of the interpleader suit.26

Where in an interpleader suit the original plaintiffs are not claiming any title to the
property and in fact the dispute is between the rival defendants, the rights of tenant would
be safeguarded by holding that he would go on depositing the rent in the Court, till decision
of the suit. An appeal lies from an order under this rule. (O. 43, R. 1 (p).)

PROCEDURE AT FIRST HEARING.

R. 4. (1) At the first hearing the Court may-

(a) 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

(b) if it thinks that justice or convenience so require, retain all parties until the final disposal
of the suit.

(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.

(3) Where the admissions of the parties do not enable the Court so to adjudicate, it may direct-

(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

First hearing.

The expression "first hearing" in this rule means the date on which the Court goes into the
pleadings in order to understand the contentions of the parties. Hence, the plaintiff in an
interpleader suit is entitled to apply to the' Court, as soon as the pleadings have been completed,
for being discharged from the suit.27

26
(1988) 94 Pun LR 148 (150).
27
AIR 1938 Cal287 (290).

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Clause (a) of R. 4 (1) of O. 35 provides for substantive relief of a declaration by the Court as
to the discharge of the plaintiff from all liability to the defendants. Such a declaration prevents
a loss. It prevents a liability being fastened upon the plaintiff. 28

It is only in cases where the amount is not in dispute and where plaintiff pays into Court the
entire amount that the court may declare that the plaintiff is discharged from all liability. Where
the amount is in dispute, the Court may declare that the plaintiff is dis- charged from liability
only to the extent of the amount admitted and leave parties to settle their disputes for the
balance otherwise or in other proceedings. 29In an interpleader suit which was not properly
instituted or which was instituted malafied or with ulterior motive the discretion of the Court
in awarding costs as against the plaintiff is not in any way taken away.

Where order was passed granting permission to open sealed cover in presence of advocate of
both parties and opening of packet was considered to be essential in interest of both the parties
and defendant also reported no objection if Court permitted the same, objection for opening of
sealed cover by defendant at stage of recording evidence on ground that Court had not adopted
proper procedure under O. 35, R. 4 cannot be allowed.30

Non-appearance of claimants.

On the non-appearance of claimants in a properly instituted interpleader suit the proper

course for the Court is laid down under sub-rule (1). It is competent to the Court-

(1) to discharge the plaintiff from all liability to the claimants-defendants in respect of the
subject-matter in dispute and dismiss him from the suit,

(2) to direct the plaintiff to pay the amount into Court to the credit of the proper claimant after
deducting his costs.

(3) to direct the claimants-defendants to apply for payment and when they appear make one of
them a plaintiff and raise an issue, and

(4) to restrain by injunction either defendant in a proper case from taking any proceeding
against the plaintiff. 31

28
(1977) 79 Bom LR 184 (187, 188).
29
AIR 1966 AndhPra 92 (96).
30
AIR 2004 AP 165 (167).
31
AIR 1919 Bom 15 (16).

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AGENTS AND TENANTS MAY NOT INSTITUTE INTERPLEADER

SUIT.

R. 5. Nothing in this Order shall be deemed to 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.

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.

Interpleader suits by agents.

This rule declares a prohibition and its concluding part provides an exception. The
reason for the rule seems to be that an agent cannot ordinarily dispute the title of his principal.
In illustration (a) C claims adversely to A but not through A, whereas in Illustration (b) C
claims
through C In order to bring the case within the rule it has to be shown that the plaintiff is
agent of the defendant and has instituted the suit for the purpose of compelling the defendant
to interplead with persons other than persons making claim through him. within the prohibition
enacted in R.5.32As to the definitions of agent and principal, see Section 182 of the Contract
Act. The relationship between a bank and a customer depositing money in the savings bank
account is that of debtor and creditor and not that of agent and principal. Hence, on a dispute
as to the ownership of the deposit arising between the customer and a third person, the
interpleader suit filed by the Bank would not come within the prohibition of this rule.33

32
AIR 1954 Punj 103 (104) (DB).
33
AIR 1957 Mad 745 (748, 749).

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Interpleader suits by railway company.

A railway company by accepting goods for carriage does not become the agent of the
consignor. It merely enters into an independent contract with the consignor. It can therefore
file an interpleader suit against the consignor and another party claiming adversely to the
consignor.34

Interpleader suits by tenants.

The prohibition that a tenant cannot file an interpleader proceeding against his landlord is based
on the principle that he cannot dispute the title of his landlord during the subsistence of the
tenancy. 35 A tenant cannot therefore bring a suit against his landlord for the purpose of
compelling him to interplead with any person other than a person making claim through such
landlord.36 Thus, where a tenant passed two kabbalists in favour of two persons in respect of
the same land and then, being threatened by suits by both of them, instituted a suit praying "that
the Court may be pleased to declare which defendant has what right in which of the disputed
lands, and in what right the plaintiff holds which of the said lands and under whom", it was
held by the High Court of Calcutta that the suit was not maintainable. 37

But the doctrine of estoppel between the lessor and the lessee does not apply to disentitle a
lessee to dispute the derivative title of one who claims to have since become entitled to the
reversion. Thus, an interpleader suit by a lessee against the assignees of the lessor and the
Government in whom the leased estate vested for determining whether the rents and royalties
held in deposit are payable to which of the defendants is maintainable.

The tenant feeling any difficulty in payment of rent can invoke provisions of Order 35 and can
file an interpleader suit and can make submission in the same that two persons are treating
themselves as landlords and Court should admit that he is a tenant and he should deposit the
rent and the Court will decide who is the landlord.

Where on death of landlady, the tenant instituted an interpleader suit for determining as to
which heir of landlady she should pay the rent, and she started paying rent to one of the two
alleged heirs. However, other heir never claimed himself to be landlord qua the plaintiff tenant.
Hence, interpleader suit by tenant denying title of her landlord was not maintain-able.

34
AIR 1915 Born 28 (28) (DB).
35
AIR 1940 Bom414 (415) (DB).
36
AIR 1941 Cal512 (515).
37
(1910) 37 Cal552 (557) (DB)

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Where A leases certain lands to B and on A's death two persons claim rent from B, namely A's
heir and a person who alleges that A was only a benamidar for X whose heir he is, it has been
held that the latter must be regarded as claiming through A and that therefore: B can file an
interpleader suit compelling the two claimants to interplead with each other.

Where a mortgagee does not deny an assignment his rights under the bond to X but only
contends that it is avoidable one, the mortgagor may treat the assignee as entitled to the money
and is not bound to bring an Interpleader suit compelling the mortgagee and X to interplead
with each other.38

Charge for plaintiff's costs.

R. 6. 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.

Scope of the rule.

This rule provides for the award of costs to the original plaintiff. Such costs when awarded will
be deducted from the fund on its being brought to Court or will be a first charge upon the fund
or subject-matter.39 Thus in an interpleader suit which is not properly instituted or which was
instituted mala fide or with ulterior motive the discretion of the Court in awarding costs as
against the plaintiff is not in any way taken away.

But the plaintiff will not be entitled to costs which have been unnecessarily incurred.
Appeal. An appeal lies from an order under this rule. (0.43, R.1, Cl.(p).)

38
AIR 1914 Mad 624 (628) (DB).
39
(1893) 18 Born 231 (236).

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CONCLUSION

An interpleader suit is a proceeding by which a person from whom some persons are claiming
same property, debt or money and who does not himself claim such property debt or money
and neither dispute such debt, such person can file a suit claiming that he is ready to pay or
deliver the said property or money to rightful claimant and can protect himself from legal
proceedings by calling upon such claimants to interplead, that is to say claim against one and
other so that title to the property or the debt may be decided. Meaning thereby, an
'interpleader suit' is a suit in which the real dispute is not between the plaintiffs and defendants
but between the defendants only and the plaintiff is not really interested in the subject-matter
of the suit. A suit under this section is called an interpleader suit because the plaintiff is really
not interested in the matter, but only the defendants interplead as to their claims. In fact, each
of the defendants so interpleading is virtually in the position of a plaintiff and his claim will be
governed by the rules of the Limitation Act. A reading of S. 88, Civil P. C., would clearly show
that the court does not have jurisdiction to travel beyond what has been admitted by the plaintiff
as due from him/her or it. The Court cannot direct any further payment or investigate into any
question relating to the transaction alleged between the parties.

The claims of the defendants must be bona fide ones, though they need not have a
common origin. The Court must be satisfied that there is a real question to be tried. A
mere pretext of conflicting claims is not sufficient. Where there was no claim or counter
claim between the parties, the provisions of S. 88 would not apply. The defendants must
also claim the money or property adversely to one another from the plaintiff. A decision
given on the claims of the co-defendants in an interpleader suit will operate as res-judicata
between them. It is, however, not necessary that the plaintiff must show the existence of
an apparent title in each of the defendants claiming the property in dispute. Nor is it
necessary that the claims should be legal claims or rights. Equitable claims and rights can be
entertained and given effect to.

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 INTERPLEADER SUITS

BIBLIOGRAPHY

BOOKS REFERRED:

 D.V.Chitaly, AIR Commentaries: The Code of Civil Procedure (Nagpur: All India
Reporter Limited, 1972).
 M.S.Mehta, A Commentary on The Code of Civil Procedure (Allahabad: Wadhwa and
Company, 1990).
 C.K.Takwani, Civil Procedure (3rd ed., Lucknow: Eastern Book Company, 1996)
 P.M.Bakshi, Supplement to Mulla’s Code of Civil Procedure (14th ed., Bombay:
N.M.Tripati Private Limited, 1992).
 T.L.VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay:
N.M.Tripathi Private Limited, 1967).

WEBSITES REFERRED:

 www.vakilno1.com/bareacts/civilprocedure/s
 indiankanoon.org/search
 www.legalserviceindia.com/article/

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