What are the Essential Feature of an Interpleader Suit in India?

An interpleader suit is one in which the real dispute is between the defendants only and the plaintiff is not really interested in the matter. The defendants interplead. i.e., plead against each other Instead of pleading against the plaintiff as in an ordinary suit.

The defendants interplead as to their claims to the debt or property over which the plaintiff has no interest and which he is ready to pay or deliver to the rightful claimant. The relevant provision is to be found in Section 88 of the Code which reads thus:

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“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.”

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ADVERTISEMENTS:

In every impleader suit the plaint shall in addition to other statements necessary for plaints, state—

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

(ii) The claims made by the defendants severally; and

ADVERTISEMENTS:

(iii) That 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 may be required to so pay or place it before he can be entitled to any order in the suit.

At the first hearing of the suit the court may declare the plaintiff discharged from all liability to the defendants in respect of the thing claimed, award him his costs and dismiss him from the suit, or retain all parties until the final disposal of the suit if it thinks that justice or convenience so requires.

Nothing in O. 35 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. [O. 35. R. 5].

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