INTERPLEADER SUIT - S. 88 R/W O.

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Section 88

 Meaning - An interpleader suit is one in which the real controversy/dispute is not

between the plaintiff and the defendant, but is rather between the defendants only, who
inter-plead against each other.
 Conditions for the applicability of the section For filing an interpleader suit the
following conditions must be satisfied :-
i. There must be a debt, sum of money or other property movable or immovable;
ii. Two or more persons must be claiming above things adversely to each other;
iii. The person from whom above things are claimed has no interest therein other
than for charges or costs;
iv. The person from whom things are claimed is willing and ready to pay or deliver
the things to the rightful owner and
v. No suit is pending in which the rights of all parties can be properly be decided.
 Object - To have the claims of the rival claimants adjudicated. It is a process where the
plaintiff calls upon the rival claimants to appear before the court and have their respective
claims decided.
Order 35
 Additional particulars in an interpleader suit R. 1 - In every interpleader suit the
plaint shall contain the following additional particulars :-
i. That the plaintiff claims no interest in the subject matter in dispute other than
charges or costs
ii. The claims made by the defendants severally and
iii. That there is no collusion b/w the plaintiff and any one of the defendants.
 Payment of thing into court R. 2 - This rule is directive and not mandatory. If the thing
claimed is capable of being paid or placed in the custody of the court, the court may
direct so to the plaintiff.
 Procedure where defendant is suing plaintiff R. 3 - This rule provides that if any of
defendants in an interpleader suit sues the plaintiff in respect of the subject matter of such
suit, then the court in which the suit against the plaintiff is pending shall stay the
proceeding against him.
 Procedure at first hearing R. 4 - Following may be noted :-
i. At the first hearing the court may declare that the plaintiff is discharged from all
the liability towards the defendants in respect of the things claimed, award him of
his costs and dismiss him from the suit.
ii. But if the in the interest of justice if his participation is required, retain all the
parties until the final disposal of the suit.
iii. Where the court finds that the admission of the parties or other evidences are
sufficient to enable it to decide the title of thing claimed, it will adjudicate the
matter.
iv. Where, however, it is not so, it will direct that issues or issues between the parties
be framed and tried;
 Agents and tenants may not institute interpleader suits (Who cannot file an
interpleader suit) R. 5 - An agent and tenants may not institute the suit in certain
circumstances. An agent cannot sui his principal or a tenant cannot sue his landlord for
the purpose of compelling them to interplead with any persons other than persons making
the claim through such principals or landlords.
The reason for this rule is that ordinarily an gent cannot dispute the title of his principal.
Similarly, the tenant cannot dispute the title of his landlord during the subsistence of the
tenancy.

 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.

Asan v. Saroda, it was held that, where defendants do not claim adversely to each other,
nor does the plaintiff admit the title of one of the defendant or is willing to pay or deliver
the property to him, the suit is not interpleader.