Introduction

In fact, “Inter-pleader Suits” is not defined in the Code of Civil Procedure, 1908.  ‘Inter-plead’ generally means to litigate with each other to find a solution concerning a third party.  In “Inter-pleader” suits, the dispute is not between the plaintiff and defendants. In fact, the plaintiff in such suits has no interest in the subject matter of the dispute. The dispute is between the defendants and they inter-plead against each other.

Ingredients:

• In “Inter-pleader” suits, the plaintiff must be in lawful possession of a property belonging to some other person.
• The property may be movable or immovable,
• Plaintiff must not have any interest in the property.
• There shall be two or more claimants for the property
• Plaintiff must be ready to hand over the property to the right claimant based on the decision of the court.

Illustration: ‘X’ is having lawful possession of a Gold Chain in which he has no interest. ‘Y’ and ‘Z’ are independently claiming the Gold Chain. In such circumstances ‘X’ sues ‘Y’ and ‘Z’ to find out the decision of the court as to the ownership of the Gold Chain.  In such suits, defendant’s ‘Y’ and ‘Z’ will adversely claim and litigate. Plaintiff ‘X’ will be silent and be the spectator in such disputes, because the real dispute lies between the defendants in the “Inter-pleader” suits.

Interpleader Suits’ (Sec. 88, Order 35)

An interpleader suit is one in which the real dispute is between the defendants only and the defendants interplead (i.e., plead against each other), instead of pleading against the plaintiff as in an ordinary suit. The plaintiff is really not interested in the matter. In fact, each of the defendants so interpleading is virtually in the position of a plaintiff. Sec. 88 and Order 35 deal with such suits.

Illustration: P is in possession of a jewel box, wherein he claims no interest himself, and is ready and willing to hand over to the rightful owner. The box is claimed by A and B. P may file an interpleader suit against A and B, and the court will decide as to who is the rightful owner as between A and B.

Order 35, Rule 1 lays down that in every interpleader suit, the plaint must also state:

1. That 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. That there is no collusion between the plaintiff and any of the defendants.

For an interpleader suit to be filed there must be a property or a sum of money that is in dispute over ownership and possession. The person currently in possession should not claim any right over the property in dispute and should rather be ready to deliver it to the respective owner once decided by the court.

Section 88 of the Code of Civil Procedure, 1908 governs suits of such nature and Order 35 lays down the procedure to be followed in case of interpleader suits.

Essentials of Inter-pleader suit as per Sec. 88 and Order 35, C.P.C. are :-

There must be some debt, sum of money or other property movable or immovable in disputes;

1. Two or more persons must be claiming it adversely to one another;
2. The plaintiff does not claim any interest in it except the charges, or costs and is ready to pay or deliver it to the right claimant.
3. There is no collusion between the plaintiff and any of the defendants

Exceptions to inter-pleader suit:-

According to Rule 5 of Order 35, Section 88 of C.P.C., the following persons cannot file inter-pleader suit namely-

1. An agent cannot sue his principal;
2. A tenant cannot sue his landlord.

Thus, an agent cannot sue his principal or a tenant his landlord for the purpose of compelling them to interplead with persons other than persons claiming through such principles or landlord.

An order dismissing in interpleader suit is appealable under Order XLIII, Rule 1 of the Code of Civil Procedure.