Question: what is interpleader suit?

Explain circumstances in
which such suit may be instituted. ( Bihar civil judge
examination, 2014)

Not every suit follows the same course of trial and proceeding. A
few civil cases do not follow the regular course and are
comparatively different in nature in terms of the parties and
their involvement in the suit. One such kind of suit is the
interpleader suit. Interpleader suits are very different from the
ordinary suits that are normally filed before the Court between
two parties, the plaintiff and the defendant. The dispute in such
suits is instead between two defendants.

An interpleader suit is one in which the real controversy is not

between the plaintiff and the defendant, but is rather between
the defendants only, who inter-plead against each other.

The hallmark of an interpleader suit is the fact that, in an

interpleader suit, the plaintiff is not really interested in the
subject-matter of the suit. TheThe Bombay High Court in the
case of Mangal Bhikaji Nagpase v State of Maharashtra held
that it is mandatory for the plaintiff to affirm that he has no
interest in the subject matter of dispute other than costs and
charges.
Objective of Inter-pleader suit:
The general principle on which such suits are based is that the
person in possession of the property having no interest in it
should not be compelled to be involved in multiple suits filed by
the prospective owners of the property in dispute. He should be
relieved of this burden by approaching the court and putting
the property in the custody of the court. The burden then shifts
on the court to ensure that the said property reaches
the bonafide owner. Thus suits of such nature were meant to
protect the person in possession of the
said property from ‘double vexation’ when there is only a single
liability.

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;
- two or more persons must be claiming it adversely to one
another;
- 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.
- 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-

(i) An agent cannot sue his principal;

(ii) 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 an interpleader suit is appealable under
Order XLIII, Rule 1 of the Code of Civil Procedure, 1908.