PROJECT OF CODE OF CIVIL PROCE PROCEDURE DURE INTER PLEADER SUIT
SUBMITTED SUBMITT ED BY – Somnath Tayal
SUBMITTED SUBMIT TED TO –
ROLL NO – 95!"
D#$ D#$ %a#an Dh&llon
BaLL'( )th *+m+*t+#
FACULTY ACULTY ,UILS( PU-
S+./on0 B
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AC%NO1LED2EMENT
I, Somnath studying in the 4 rd year of University Instute of Legal Studies, would like to state that in the comleon of the ro!ect reort of "#P#" on the toic $I%&'( PL')*'( SUI&#+ I have received a lot of encouragement and suort from various uarters which need secial a-enon# I would .rst and foremost like to thank and resent my sincere gratude to my teacher, teacher, *r# *r# /aran *hillon who acted as a guiding light for me and heled me with the comleon on this ro!ect reort# I would also like to thank my friends for their co0oeraon and suort which heled me in successfully comleng my ro!ect#
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C3APTERISATION
!$ 4$ "$ $ 5$ 6$ )$
INTRODUCTION 2ENERAL CONCEPT OF SUIT 13ERE INTERPLEADER SUIT MAY BE INSTITUTED PLAINT IN T3E INTERPLEADER SUIT PAYMENT OF T3IN2 CLAIMED IN T3E COURT PROCEDURE 13ERE DEFENDANT IS SUIN2 PLAINTIFF PROCEDURE AT FIRST 3EARIN2 A2ENTS AND TENANTS MAY NOT INSTITUTE
7$
INTERPLEADER SUIT$ CONCLUSION
BIBLIO2RAP3Y
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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. Thus suppose, certain property is claimed by A as well as by B, and X is in possession of that property and claims no interest in the property himself and is ready and willing to deliver it to such party as may be declared by the court to be the rightful owner of it, X as plaintiff may institute an interpleader suit against A and B as defendants. In such a case, X will , as rule, be dismissed from the suit at the first hearing after his costs are provided for , and A and B will be left to interplead and to fight the matter out between themselves as if one of them was plaintiff and other was defendant(O !, r."#. But before the plaintiff is dismissed from the suit, he must deposit the property in dispute in court(O!, r$#. X can even move the court for an order to get his name removed from the suit. It would appear that in such a suit it is not necessary that the plaintiff must admit claim in entirety. To the e%tent he admits his liability he may as& the rival claimants to interplead. 'ho claims no interest other than for charges or costs. These words indicate that the plaintiff in an interpleader suit must be in a real position of impartiality. A railway company which claims no interest in goods in its possession other than a lien on the goods for wharfage, demurrage and freight, may institute an interpleader suit where the goods are claimed by two persons adversely to each other.$ A holds in his hands a sum of )s. !,*** which is claimed by B and + adversely to each other.A institutes an interpleader suit against B and +. 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 1Sam3iah v Su33a(eddiar 15617 1 8L9262# :om3ay :aroda (ly#co# v Sasoon 1;547 1; :om 21#
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from A )s. ",*** only in fullsatisfaction of his claim. ere A has, by virtue of the agreement, an interest in the sub-ect matter of the suit, and he is not, therefore, entitled to institute an interpleader suit. The suit must be dismissed. A party who has ta&en an indemnity from one of the claimants is not entitled to file an interpleader suit." A suit is not necessarily an interpleader suit and sub-ect to the provisions of this section, merely because one of the reliefs claimed by the plaintiff reuires the defendants to interplead together concerning certain claims. The court must have regard to all the prayers of the plaint to determine the e%act nature of the suit. ! A plaint in an interpleader suit can be amended by inclusion of new properties and -oinder of new parties./
1.
GENERAL CONCEPT OF SUIT
The term suit is not defined under the in the +.0.+. but by various decisions it can be said that 12uit ordinarily means a civil proceedings instituted by presentation of a plaint. +ivil 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. 'ithout suit there can not be a decree. There are four essentials of a suit3 1. Name of Parties (there must be two opposing parties# 4 In a suit there must be at least
two parties the plaintiff 5 the defendant. There is no limitation with regards to number on either side. 2. Cause of Actions 6 it is a set of facts or circumstances that a plaintiff is reuired to
prove. A person is party to a suit if there is a cause of action against him. The cause or the set of events or circumstances which leads or resulted into presentation of a plaint or filing a suit. 6 lay man language 28urrie-a v South )merica "o# 1;527 < L9=: 25<# 4>ari/armakar v (o3in )I( 15? (ang 51 69uggannath v &ulkakera 15@;7 2:om 65# <(a!a :hagwa:aksh Singh v "ivil 9udge )I( 15<1 )ll 655# ? P#8#:akshi, Sulement to 8ullaAs "ode of "ivil Procedure 14th ed#, :om3ayB %#8#&ria Private Limited, 1557#
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7egally 6 The cause of action means every facts which is necessary for the plaintiff(s# to be proved with a view to obtain a decree in his favour. +ause of action means all essential facts constituting the right and its infringement. 8very plaint must disclose a cause of action if not, it is the duty of the court to re-ect the plaint 6 O.3, ). . Su!"ect matter 6 there must be a sub-ect matter (with what respect or aspect civil dispute
is#. 2ection49. +ourts to try all civil suits unless barred. The +ourts shall (sub-ect to the provisions herein contained# have -urisdiction to try all suits of a civil nature e%cepting suits of which their cogni:ance is either e%pressly or impliedly barred. ;8%planation I<.A suit in which the right to property or to an office is contested is a suit of a civil nature, notwithstanding that such right may depend entirely on the decision of uestions as to religious rites or ceremonies. ;8%planation II<. =or the purposes of this section, it is immaterial whether or not any fees are attached to the office referred to in 8%planation I or whether or not such office is attached to a particular place.> #. Re$ief c$aime% !& t'e ($aintiff 6 no court will give relief unless relief is specifically
claimed by the party )elief is of two types4 # specific relief and $# alternative relief. )arious sta*es of ci+i$ suit,
.
Institution of suit or commencement of suit.
$. 2ervice of summon. ; I3id ?
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. 'ritten statement ". =irst hearing and framing of issues. !. ?iscovery. /. 0roduction of evidence and final hearing. 3. Arguments. >. @udgment. 9. 0reparation of decree. *. 8%ecution of decree. 8very suit shall be instituted by presentation of a plaint and (every plaint shall be proved by affidavit# by amendment of $**$.4 2ec.$/
8very suit shall be instituted by presenting a (plaint in duplicate to the court# by amendment of 999.
8very plaint shall comply the rules contained in O.I 5 II of +.0.+.
A plaint shall not deemed to be duly instituted unless it complies the provisions of O.I ). 5 $.
0articulars of every suit be entered in a boo& called register of civil suit.
'hen a suit has been instituted, a summon may be issued to the defendant to appear and answer the claim and may be served in prescribed manner (as described in O. of +.0.+.# 6 within * days (amendment act of 999# 6 2. $3
2ection / 6 o +ourt 2hall entertain any suit, the amount or value of the sub-ect matter of which e%ceeds he pecuniary limits of its -urisdiction.4 0ecuniary @urisdiction ()ule 6 # 2ection 9 6 The court shall have -urisdiction to try all suits of a civil nature e%cepting suits of which their cogni:ance is either e%pressly or impliedly barred.4 @urisdiction relating to sub-ect matter 6 ()ule $# 2ection ! 6 8very suit shall be instituted in the court of the lowest grade competent to try it. 6 ()ule 4#
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-uris%iction
@urisdiction means the e%tent of power of a court to entertain suits and applications. It signify the power, authority, competency of the court to ad-udicate the disputes presented before it. It can be referred to be the right of administration -ustice by means of law. It means the power of authority of a court to enuiry to the facts to apply the law and to pronounce the -udgement and to carry it into e%ecution. Territoria$ -uris%iction 4 8very court has its own specific local territorial limits 6 fi%ed
geographical boundaries Pecuniar& -uris%iction 4 The pecuniary -urisdiction of a civil court refers to the amount or the
value of cases that can be presented before it for ad-udication, -uris%iction re$atin* to su!"ect matter 4 It is power and authority of a court to try a particular
type of suit Ori*ina$ -uris%iction 6 In e%ercise of the original -urisdiction, court tries original suits instituted
in that court. A((e$$ate -uris%iction 6 In e%ercise of the appellate -urisdiction, the court hears appeals from
decree and order passed by subordinate courts. ote C4 There are certain court which have only original -urisdiction but some of the courts which have both original and appellate -urisdiction Section 10. Stay of suit o +ourt 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 +ourt in India having -urisdiction to grant the relief claimed, or in any +ourt beyond the limits of India established or continued by the +entral Dovernment and having li&e -urisdiction, or before the 2upreme +ourt.9
5 &#L#Cenkatarama)yiar, 8ulla on &he "ode of "ivil Procedure 12th ed#, :om3ayB %#8#&riathi Private Limited, 15
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8%planation E The pendency of a suit in a foreign +ourt does not preclude the +ourts in India from trying a suit founded on the same cause of action. Section 11.Res judicata. o +ourt 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 +ourt competent to try such subseuent suit or the suit in which such issue has been subseuently raised, and has been heard and finally decided by such +ourt
2.
/0ERE INTERPLEADER SUIT A 3E INSTITUTED
SECTION44 5 'here 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 himselfC 0rovided 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. FTo interpleadF means Fto litigate with each other to settle a point concerning a third party.F *
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. Geaning thereby, an Hinterpleader suitH is a suit in 1@ &#L#Cenkatarama)yiar, 8ulla on &he "ode of "ivil Procedure 12th ed#, :om3ayB %#8#&riathi Private Limited, 15
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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 sub-ect4matter of the suit. Con%itions to Institute Inter($ea%er Suit
=ollowing conditions must be satisfied to institute an interpleader suitC (a# there must be some debt, sum of money or other property movable or immovable in disputeE (b# two or more persons must be claiming it adversely to one anotherE (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 claimantE 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.
'here 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 suitE otherwise if he litigated with the claimant separately, he 'ould have to pay the costs of 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 sub-ect matter other than for charges or costs. 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 asto 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 7imitation Act.$ A reading of 2. >>, +ivil 0. +., would clearly show that the court does not have -urisdiction to travel beyond what has been admitted by the plaintiff as due from himher or it. The +ourt cannot direct any further payment or investigate into any uestion relating to the transaction alleged between the parties.
11 1)I( 156 8ad 45? 6<7 *:7#
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In order to determine whether a suit is an interpleader suit under the section the +ourt must have regard to all the prayers in the plaint. The mere fact that the plaintiff reuires the defendants to interplead as regards one of the reliefs claimed would not necessarily ma&e it an interpleader suit. 'here a party in the position of a mere sta&e4holder is made a defendant in a suit, his proper course is to deposit the money (if it is a suit for money# into +ourt and as& that the parties really interested may be substituted for himself as defendants. 2uch deposit by him is a valid discharge for him and if the +ourt paid it to a wrong person he is not respon4 sible.
But
in
view
of
the
definition
of
the
e%pression
Hinterpleader
suitH and the procedure governing such suits given in this section, the +ourt of 'ards can institute interpleader suit against several claimants, when, on the death of any person of whose property the +ourt of 'ards has assumed -urisdiction, the succession to his property is disputed. 2uch a suit falls prima facie within this section and is not barred by 2. "> of the 0un-ab Act." Also, Order !, )ule ! does not bar all interpleader suits as against the landlord. It bars such a suit when a claim adverse to the landlord is put forward by a person not claiming through the landlord himself i.e. when such an adverse claim is put forward on a title independent of the landlord.! 'here in e-ectment petition filed by both rival landlords against tenant, a Ban& on ground of non4payment of rent 4 0etitioner one of rival landlord claimed himself to have become e%clusive owner of suit property under mutual partition and Ban& was not a party to said compromise or settlement 4 Interpleader suit filed by Ban& for deciding title of suit property would be maintainable. 'here in an interpleader suit, the original plaintiff, who was a tenant was not claiming any title to the property and the rival defendants were claiming title to the property and in fact, the dispute was between the rival defendants and not between the plaintiff and the defendants to the suit, the order holding that one set of claimants to the property will act as a plaintiff and the other set of claimants as defendant to the suit and the rights of tenant would be safeguarded by holding that he would go on depositing the rent in the +ourt was proper. 12l5@;72 :om 65 65?7 *:7# 14 )I( 1564 Pun 1@2 1@47 *:7 # 1615?57 "al L9 ? 167#
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Claims must be bona fide and advese to one anot!e.
The claims of the defendants must be bona fide ones, though they need not have a common origin. The +ourt must be satisfied that there isa real uestion to be tried. A mere prete%t of conflicting claims is not sufficient. 'here there was no claim or counter claim between the parties, the provisions of 2. >> would not apply./ The defendants must also claim the money or property adversely to one another from the plaintiff. 3 A decision given on the claims of the co4defendants in an interpleader suit will operate as res4-udicata between them.> It is, however, not necessary that the plaintiff must show the e%istence of an apparent title in each of the defendants claiming the property in dispute. or is it necessary that the claims should be legal claims or rights. 8uitable claims and rights can be entertained and given effect to. Claims must be "it! efeen#e to t!e same sub$e#t%matte.
The rival claims must be with reference to the same debt, sum of money, or other property, but not necessarily to the same e%tent. It is thus not necessary that each of the defendants should claim the whole of the sub-ect4matter of the suit. 2imilarly, it is not necessary that the plaintiff should admit the claim as made by the rival claimants in its entirety. e may as& them to interplead to the e%tent he admits liability.9 The Fsame debt, sum of money, or other propertyF would not, it is conceived, include a claim for unliuidated damages, though it might include a chose in action. Order /, ). 3 applies to an interpleader suit and if it appears from the pleadings that there is some further property besides the sub-ect4matter 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.$* Plaintiff s!ould #laim no inteest in t!e sub$e#t%matte.
1<1557 1 Pat L9( 2<6 2?7# 1?)I( 15 "al 12; 1257 *:7# 1;)I( 15; Dudh 1B66 1?57 15 )I( 15<< )ndhPra 5 567# @)I( 15<1 )LL 665 6<17#
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The plaintiff must be in an impartial position $. If he has, in some way, identified himself with one of the parties, in the sense that it will ma&e a difference to him which of the two succeeds, an interpleader suit will not lie.$$ Thus, a person who has ta&en 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.$ 6. 7C'ar*es or costs78 meanin* of.
The words Fcharges or costsF include costs of suit, freight, warehouse rent, doc& rent, wharfage, demurrage and other charges. A lien can be declared for such charges in an interpleader suit, but the amount of those charges, if disputed, ought to form the sub-ect of a separate proceeding between the lien4holder and the ad-udicated claimant.$" (# 0laintiff must be ready to payor deliver the property to the rightful owner. (Order !, )ule $.#. Addition of parties in interpleader suit.(Order , )ule *.#
1.
PLAINT IN T0E INTERPLEADER SUIT
R. . In every suit of interpleader the plaint shall, in additio n the other statements necessary for plaints, state(a) that the plaintiff claims no interest in the subject-matter in dispute other than for chares or costs! (b) the claims made by the defendants severally! and (c) that there is no collusion bet"een the plaintiff and any of the defendants. 1 &#L#Cenkatarama)yiar, 8ulla on &he "ode of "ivil Procedure 12th ed#, :om3ayB %#8#&riathi Private Limited, 15
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The conditions necessary for the institution and maintainability of the interpleader suit areE (# some debt or money or other property, movable or immovable, is due from the plaintiff, ($# Two or more persons bona fide claim the same adversely to one another from the plaintiff who is not able to &now who the rightful claimant is, (# 0laintiff should not have anyinterest therein other than for charges or costs, ("# e must be prepared to payor deliverthe same to the rightful claimant and for that purpose unconditionally place it at the disposal ofthe +ourt and (!# The suit must be instituted bona fide without any collusion for a decree as to the rightful claimant and for obtaining indemnity for himself. Gerely because the amount admitted by the plaintiff to be due is less than claimed by the defendants it cannot be said that the plaintiff claimed an interest in the sub-ect4matter in dispute. An interpleader suit will, therefore, be maintainable.$! The e%pression HplaintH emphasises the character of the proceedings. It euates it with a proceeding in any other suit. In an interpleader suit it is not open for the +ourt with limited -urisdiction to direct that the amount deposited should be paid over to one or the other party and such payment is permissible provided the disputing party establishes the claim in +ivil +ourt. 'here the plaintiff claims anyinterest in the concerned property the interpleader suit has to fail. The +ourt does not have -urisdiction to travel beyond what4has been admitted by the plaintiff as due from himher or it. The +ourt cannot direct any further payment or investi4 gate into any uestion relating to the transaction alleged between the parties. $/ Tenant cannot file interpleader suit against his landlord.$3
6)I( 15<< )ndhPra 5 54,5<7# <@@@7 2 8ad L9 4; 457# ?)I( @@6 %D"7 41B @@6 27 )ll Ind "ase <;1 (a!7#
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2.
PAENT OF T0ING CLAIED IN T0E COURT
R.#. $here the thin claimed is capable of bein paid into %ourt or placed in the custody of the %ourt, the plaintiff may be re&uired to so payor place it before he can be entitled to any order in the suit.
&&'a( be e)uied to so *a(o *la#e it.+
'here the sub-ect4matter of the dispute is a chose in action its disposition as the +ourt may direct is a sufficient compliance with the rule. The +ourt has a discretion to ma&e such orders as regards the sub-ect4matter in dispute and the party is bound to obey the order before he can as& for any relief in the suit. This is a further condition that will be imposed upon the party to test his bona fides or disinterestedness. If he is not ready to payor deliver the property to one of the defendants but disputes his title, the suit is not an interpleader suit.$> But if the plaintiff complies with the order of the +ourt he is fully discharged from liability. Thus, where the plaintiff pays the amount in dispute into4+ourt for payment to the right person, but the +ourt pays it to the wrong person the plaintiff cannot be made respon4 sible for the mista&e of the +ourt but is fully discharged from liability.$9 In interpleader suit it is not open for the +ourt with limited -urisdiction to direct that the amount deposited should be paid over to one or the other party as such payment is permis4 sible provided the disputing party establishes the claim in +ivil +ourt. Pa(ment to one of t!e #ontestants on se#uit(.
The money paid into +ourt 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 &ept under the control of the +ourt available for payment at any time to the successful party. ;)I( 15?; Pat 161 1617 *:7 5 h-BEEwww#advocatekho!#comEli3raryE3areactsEcodeofcivilrocedureE;;#hF&itleG"odeH@ofH@"ivil H@Procedure,H@15@;S&itleGJhereH@interleaderH@suitH@mayH@3eH@instuted , retrieve don nd octo3er @16
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. PROCEDURE /0ERE DEFENDANT IS SUING PLAINTIFF.
R. . $here any of the defendants in an interpleader-suit is actually suin the plaintiff in respect of the subject-matter of such suit, the %ourt in "hich the suit aainst the plaintiff is pendin shall, on bein informed by the %ourt in "hich the interpleader-suit has been instituted, stay theproceedins as aainst 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.
Le,islative #!an,es .
Jnder the old +ode proceedings in another suit by the defendant against the plaintiff could be stayed only after a decree in the interpleader suit. Jnder the present rule, such proceedings can be stayed even on the institution of the interpleader suit. S#o*e.
Before passing an order of stay under O. !, ). , the +ourt has to consider the applicability or otherwise of the bar contained in O. !, ). !.And O. !, ). in clear terms casts an obligation upon the +ourt which has sei:ed of an interpleader suit to inform the +ourt in which suit against plaintiff is pending that an interpleader suit inter parties and in relation to suit property is pending. In other words, the information must come only through +ourt and none else. O. !, ). is not applicable to the proceedings before )ent +ontroller as the said proceedings are not proceedings in a suit. But where e-ectment was sought against petitioner tenant of @oint indu =amily firm by two sets of persons one being sons of landlord to whom the petitioner paid rent and another being purchasers who claimed to have purchased property from 1< | P a g e
widow of the&arta, interpleader suit at the instance of tenant petitioner was maintainable and was obligatory on the +ourt to stay the e-ectment proceedings by the filing of the interpleader suit.* 'here 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 +ourt, till decision of the suit. An appeal lies from an order under this rule. (O. ", ). (p#.#
#.
PROCEDURE AT FIRST 0EARING .
R. ". (# 't the first hearin the %ourt may(a) declare that the plaintiff is dischared from all liability to the defendants in respect of the thin claimed, a"ard him his costs, and dismiss him from the suit! or (b) if it thins that justice or convenience so re&uire, retain all parties until the final disposal of the suit. (#) $here the %ourt finds that the admissions of the parties or other evidence enable it to do so, it may adjudicate the title to the thin claimed. () $here the admissions of the parties do not enable the %ourt so to adjudicate, it may direct(a) that an issue or issues bet"een the parties be framed and tried, and (b) that any claimant be made a plaintiff in lieu of or in addition to the oriinal plaintiff, and shall proceed to try the suitin the ordinary manner
Le,islative #!an,es.
2@15;;7 54 Pun L( 14; 16@7#
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o change is made in ). " by the Amendment Act of 93/ or by Amendment Acts of 999 and $**$. 2ub4rule (# has been adopted from the 8nglish )ules of the 2upreme +ourt, and substituted for cl. (d# of the old 2. "3. The change e%pressly authori:es a +ourt to ma&e one of the claimants a plaintiff in lieu of, or in addition to, the original plaintiff. The uestion whether a party to an interpleader issue shall be treated as plaintiff or defendant must be decided by the real merits of the case and not by the mere form of the issue itself. The +ourt may in its discretion add a party claiming to be interested in an interpleader suit upon his own application. Fist !eain,.
The e%pression Ffirst hearingF in this rule means the date on which the +ourt goes into the pleadings in order to understand the contentions of the parties. ence, the plaintiff in an interpleader suit is entitled to apply to theH +ourt, as soon as the pleadings have been cornpleted, for being discharged from the suit.$ +lause (a# of ). " (# of O. ! provides for substantive relief of a declaration by the +ourt as to the discharge of the plaintiff from all liability to the defendants. 2uch a declara4 tion prevents a loss. It prevents a liability being fastened upon the plaintiff. It is only in cases where the amount is not in dispute and where plaintiff pays into +ourt the entire amount that the court may declare that the plaintiff is discharged from all liability. 'here the amount is in dispute, the +ourt may declare that the plaintiff is dis4 charged from liability only to the e%tent of the amount admitted and leave parties to settle their disputes for the balance otherwise or in other proceedings. "In an interpleader suit which was not properly instituted or which was instituted malafide or with ulterior motive the discretion of the +ourt in awarding costs as against the plaintiff is not in any way ta&en away. 'here order was passed granting permission to open sealed cover in presence of advocate of both parties and opening of pac&et was considered to be essential in interest of both the parties and defendant also reported no ob-ection if +ourt permitted the same, 211;;<7 12 "al 5@ 52, 547 *:7# 2)I( 152; "al;? 5@7# 2215??7 ?5 :om L( 1;4 1;?, 1;;7# 24)I( 15<< )ndhPra 5 5<7#
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ob-ection for opening of sealed cover by defendant at stage of recording evidence on ground that +ourt had not adopted proper procedure under O. !, ). " cannot be al4 lowed.!
Non%a**eaan#e of #laimants.
On the non4appearance of claimants in a properly instituted interpleader suit the proper course for the +ourt is laid down under sub4rule (#. It is competent to the +ourt4 (# to discharge the plaintifffrom all liability to the claimants4defendants in respect of the sub-ect4matter in dispute and dismiss him from the suit, ($# to direct the plaintiff to pay the amount into +ourt to the credit of the proper claimant after deducting his costs. (# to direct the claimants4defendants to apply for payment and when they appear ma&e one of them a plaintiff and raise an issue, and ("# to restrain by in-unction either defendant in a proper case from ta&ing any proceed4 ing against the plaintiff./ Sub%ule. -/.
The sub4rule e%pressly provides that once the suit has proceeded on trial it shall be tried li&e any other suit in the ordinary manner, thus attracting the provisions of O., ).* and O./, ).3 of the +ode. The +ourt can, therefore, allow amendment of plaint by inclusion of certain property in the sub-ect4matter of the suit and by addition of certainparties as defendants.3 An interpleader suit against a company in liuidation is a suit or proceeding against the company within 2. ""/ of the +ompanies Act, 9!/ and such a suit cannot be filed or
26)I( @@4 )P 1<6 1
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continued without the leave of the +ompany +ourt in which liuidation proceedings against the company are pending. A**eal.
An appeal lies from an order under this rule.(*.", )., cl.(p#.# An order dismiss4 ing the interpleader suit itself or an ad-udication upon the claims of the defendants in the interpleader suit will, however, be a decree and appealable as such under 2ection 9/ of the +ode. An order adding a defendant to an interpleader suit on his application is one passed under O. , ). * and not under this rule and, as such, is not appealable.> 9.
AGENTS AND TENANTS A NOT INSTITUTE INTERPLEADER SUIT.
R. !. *othin in this +rder shall be deemed to enable aents to sue their principals, or tenants to sue their landlords, for the purpose of compellin them to interplead "ith any persons other than persons main claim throuh such principals or landlords.
Illustations
(a# A deposits a bo% of -ewels "ith B as his agent. + alleges that the -ewels were wrongfully obtained from him by A, and claims them from B. B cannot institute an interpleader4suit against A and +. (b# A deposits a bo% of -ewels with B as his agent. e then writes to + for the purpose of ma&ing the -ewels a security for a debt due from himself to +. A afterwards alleges that +Hs debt is satisfied, and + alleges the contrary. Both claim the -ewels from B, B may institute an interpleader suit against A and +. Inte*leade suits b( a,ents. 2; )I( 156; /er 2@4#
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This rule declares a prohibition and its concluding part provides an e%ception. The reason for the rule seems to be that an agent cannot ordinarily dispute the title of his princi4 pal. The illustrations to the rule e%plain the rule so far as agents are concerned. In Illustra4 tion (a# + claims adversely to A but not through A, whereas in Illustration (b# + claims through & 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 defen4 dant to interplead with persons other than persons ma&ing claim through him. Thus, where a +ourt of 'ards instituted an interpleader suit against its wards, some of whom after their fatherHs death claimed possession of property for the eldest brother by the rule of primo4 geniture while others claimed it for all the brothers, the rule of primogeniture not being applicable, it was held that the rival claimants being the wards themselves, the suit did not come within the prohibition enacted in ). !.9 As to the definitions of agent and principal, see 2ection >$ of the +ontract Act. The relationship between a ban& and a customer depositing money in the savings ban& account is that of debtor and creditor and not that of agent and principal. ence, on a dispute as to the ownership of the deposit arising between the customer and a third person, the interpleader suit filed by the Ban& would not come within the prohibition of this rule."* Inte*leade suits b( ail"a( #om*an(.
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. " Inte*leade suits b( 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."$ 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 ma&ing claim through 25)I( 1564 Pun! 1@2 1@47 *:7# 4@)I( 156? 8ad ?46 ?4;, ?457# 41)I( 1516 :orn ; ;7 *:7# 4)I( 154@ :om414 4167 *:7#
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such landlord." Thus, where a tenant passed two &abuliats 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 Fthat the +ourt 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 whomF, it was held by the igh +ourt of +alcutta that the suit was not maintainable. "" In order that a person may be said to claim through a landlord for the purpose of this rule, the right under which such person claims must have arisen after the commencement of the tenancy. Thus, where A leases a certain property to B, B cannot compel A to interplead with + who claims to have purchased the property from A before the grant of the lease."! 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 Dovernment in whom the leased estate vested by virtue of the Bihar 7and )eforms Act, 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 invo&e provisions of Order ! and can file an interpleader suit and can ma&e submission in the same that two persons are treating themselves as landlords and +ourt should admit that he is a tenant and he should deposit the rent and the +ourt will decide who is the landlord. 'here 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. owever, other heir never claimed himself to be landlord ua the plaintiff tenant. ence, interpleader suit by tenant denying title of her landlord was not maintain4 able. 'here A leases certain lands to B and on AHs death two persons claim rent from B, namely AHs heir on the one hand 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 42)I( 1541 "al61 6167# 44151@7 2? "al66 66?7 *:7 46)I( 154@ :orn 414 4167 *:7#
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and that thereforeC B can file an interpleader suit compelling the two claimants to interplead with each other. 'here a mortgagee does not deny an assignment by him of 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 ."/ The applicability or otherwise of the bar contained in this rule has to be considered before passing an order of stay under O. !, ). . 8viction proceedings are not liable to be stayed at the behest of tenant who otherwise also is not -ustified to file an interpleader suit in view of bar of O. !, ). !.
C'ar*e for ($aintiff:s costs.
R. /. $here the suit is properly instituted the %ourt may provide for the costs of the oriinal plaintiff by ivin him a chare on the thin claimed or in some other effectual "ay. S#o*e of t!e ule.
This rule provides for the award of costs to the original plaintiff. 2uch costs when awarded will be deducted from the fund on its being brought to +ourt or will be a first charge upon the fund or sub-ect4matter. "3 Thus in an interpleader suit which is not properly instituted or which was instituted mala fide or with ulterior motive the discretion of the +ourtin awarding costs as against the plaintiff is not in any way ta&en 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.(*.", )., +l.(p#.#
4<)I( 1514 8ad <4 <;7 *:7# 4?1;527 1; :orn 21 2<7#
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6. 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. Geaning thereby, an Hinterpleader suitH 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 sub-ect4matter 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 7imitation Act. A reading of 2. >>, +ivil 0. +., would clearly show that the court does not have -urisdiction to travel beyond what has been admitted by the plaintiff as due from himher or it. The +ourt cannot direct any further payment or investigate into any uestion 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 +ourt must be satisfied that there is a real uestion to be tried. A mere prete%t of conflicting claims is not sufficient. 'here there was no claim or counter claim between the parties, the provisions of 2. >> 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 co4defendants in an interpleader suit will operate as res4-udicata between them. It is, however, not necessary that the plaintiff must show the e%istence of an apparent title in each of the defendants claiming the property in dispute. or is it necessary that the claims should be legal claims or rights. 8uitable claims and rights can be entertained and given effect to.
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3I3LIOGRAP05
BOOKS REFERRED:
?..+hitaly, 'IR %ommentaries he %ode of %ivil rocedure (agpurC All India
)eporter 7imited, 93$#. G.2.Gehta, ' %ommentary on he %ode of %ivil rocedure (AllahabadC 'adhwa and
+ompany, 99*#.
+.K.Ta&wani, %ivil rocedure (rd ed., 7uc&nowC 8astern Boo& +ompany, 99/#
0.G.Ba&shi, Supplement to /ullas %ode of %ivil rocedure ("th ed., BombayC .G.Tripati 0rivate 7imited, 99$#. T.7.en&ataramaAyiar, /ulla on he %ode of %ivil rocedure (th ed., BombayC
.G.Tripathi 0rivate 7imited, 9/3#.
WEBSITES REFERRED:
www.va&ilno.combareactscivilprocedures indiankanoon.org/search www.legalserviceindia.com/artcle/
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