Aligarh Muslim University

Malappuram center kerala

Subject civil procedure code

General class second report on topic

order 35 of civil procedure code
(interpleader )

Submitted to. Submitted by

Alinihas v. Sadhvi singh

Asst professor. 18 BALLB 33

Dept of law. Gk7930

  Content
 Introduction
 Meaning
 Nature and scope
 Objective
 Condition
 Who can file interpleader
suit ?
 Who can not file interpleader
suit?
 Procedure
 Appeal
 Conclusion
2
Introduction
Order 35 in section 88 of the CPC 1908 deal with provision of interpleader suit generally ordinary
suit that are filled before the honourable court are between two parties the plaintiff and the
defendant but the interpleader suit is unlike the ordinary suit between the two defendants who
fight for a claim over a particular good or chattels And he is or expects to be or in respect of the
debt or money or those goods or chattels by two or more person making adverse claim thereto he
may apply to court for relief by way of interpleader

Meaning
To interpleader means to litigate with each other to settle a point concerning a 3rd party
Halsbuary ‘s laws of England it has been sated:
Where a person is under a liability in respect of adept or in respect of any money goods or cattles
and he is or expects to be sued for or in respect of that day after money or those good or
characters by 2 or more person making adverse claim there to he may apply to the court for
relief by way of interpleader
Dictionary meaning of interpleader is to go to a trial with each other in order to determine a right
on which the action of a third party depends it is a Civil Procedure that allows a plantiff or a
defendant to initiate a lawsuit in order to compel two or more other parties to litigate a
dispute.

Nature and scope

Section 88 of the code in ax at 2:00 or more person claiming adversely to one another the same
Daft sum of money or other property movable or removal from a person who does not claim any
interest therein accept the charges and cost incurred by him one is ready to pay or delivered the
same to the rightful claimant may philan interpleader suit

Object
The primary object of filing an interpleader suits to get claims of rival defendants adjudicate it is
a process where in the plaintiff calls up on the rivial calimaints to appear before the court and
get their respective claims decided the decision of the court in an interpleader suit affords

3
 indemnity to the palntiff on payments of money or delivery of property to the person whose
claim has been upheld by the court

Conditions
Before an interpleader suit can be instituted the following condition must be satisfied:

 There must be some Debt, sum of money or other property immovable or in dispute

 2 or more person must be claiming at adversely to one person

 The person from home such tap mania properties claim must not be claiming interest there
and other than the charges and cost and he must be ready and willing to pair delivered it to
the rightful claimants and

 There must be no suit pending where in the right of rival claims can be properly
adjudicated

We can understand the situation with some illustration

A in a position of a property claim by B and C adversely A does not claim any interest in the
property and his ready to deliver it to a rightful owner a can Institute and interpleader suit
A a railway company is it possession of Good as a consignee it does not claim any interest in the
gods except liean for whatfage demurrage and freight but rival claims have been made by B&C
adversely to each other A can Institute an interpleader suit.
A is liable to pay rupees 40,000 the amount is claimed by B&C adversely to each other according
to a he has already paid rupees 10,000 an interpleader suit would be competent for rupees 30,000
A is liable to pay rupees 50,000 the said amount is claimed by B&C adversely A does not dispute
his liability and is willing to pay the amount either to B or to the C declared to be the rightful
claimant by the court A may file a suit under the section by making B&C as defendants(order 35
rule 1) he can deposit rupees 50,000 in court (order 35 rule 2) such deposit the court may
discharge him from liability by awarding costs to him and by removing his name from the suit
(order 35 rule 4)
A holds rupees 50,000 claimed by B and C adversely to each other A institutes and interpleader
suit by joining B and C as defendants. it is revealed that he had a secret agreement with B before
the institution of the suit that if B succeed in the suit he would accept rupees 40,000 in full and
final satisfaction of his claim in the view of this agreement A has interest in the subject matter of
the suit and he cannot bring an interpleader suit .the suit must be dismissed.

4
Who can file interpleader suit
A person who has no interest in any debt , sum of money or other property movable or immovable
except the charges or cost or is ready to pay or deliver the property to the rightful claimant may
file interpleader suit

Who cannot file interpleader suit Rule 5

An agent cannot Sue his principal or a tenant or his landlord for the purpose of comparing them to
interplead with person other than person claiming through search principles or landlord the reason
for the rules seems to be that ordinary an agent cannot dispute the title of his principle likewise a
tenant cannot dispute the title of his landlord during the subsistence of the tenancy
N.M.N Duraiswami chettiar v.Dindigal urban co operative Bank ltd
It was held that on a dispute test to the ownership of the deposit arising between the customer and
the 3rd person an interpreter suit filed by the bank would not kambni prohibitionist order 35 rule 5
of the code of Civil Procedure 1908
The test to decide the interpleader suit
In order to decide whether a suit is in the nature of an interpleader suit the court must have regard
to all the prayers in the plaint A suit does not become interpleader suit merely because the
plaintiff required the defendant to interplead with each other as regard to one of the prayers in the
paint
Form of paint in a interpleader suit

A plantin an interpleader suit should be in the form 40 of appendix a

Procedure laid down by order 35 of civil procedure code

Order 35 lays down the procedure for interpleader suit in every interpleader suit in addition to
other statement the plaint also must state

 That the plaintiff claims no interest in the subject matter in dispute other than the charges
and cost

 the claims have been made by the defendants Severally

 there is no collusion between the plaintiff and any of the defendants

5
the court may order the plaintiff to deposit the amount or a place the property in the custody of the
court and provide costs incurred by him by giving him a charge on the thing claimed
At the first hearing,the court declare that the plaintiff is discharge from all liability award him
cost and dismiss him from the suit on the basis of evidence available the court may also
adjudicate the title to the things claimed where it is not possible , the court may direct that an
issue or issues between the parties be framed and tried one of the claimant we made the palntiff
and the suit shall proceed in an ordinary manner

Procedure when defendant is suing the plaintiff

Order 35 rule 3 of the code of Civil Procedure states that wear any of the defendant in an
interpleader suit is actually showing the printers in respect of the subject matter of suit the court in
with a suit against the plaintiff spending on being informed by the court in which the interpreter
suit is pending shall stay the proceeding in that suit as against him
Satyanarain v.District Judge tonks and ors
It was held that it is not as if that was the suit for interpleader is fired the other civil suit has to be
stayed automatically in order to invoke the power under order 35 Rule 3 of the code of Civil
Procedure the plaintiff is a duty bound to establish a prime facie case in his favour

Procedure at first hearing

Order 35 rule for of the code of Civil Procedure 1908 empowers the court to declare at the first
hearing in cell the plantiff is discharge from all liabilities and as necessary corollary the court
can award the plaintiff of his costs and dismiss him from the suit however if the court is of the
opinion that justice, proprietary and convenience requires that all party to the suit be table than
the course shall not discharge the plantiff till the final disposal of the suit is the code find it
necessary than it can direct that insert another issue be frame and tried along with other issue and
that any claimant (that is defendant in the interpreter suit) be made a plantiff in lieu or in
addition to the original plaintiff

Appeal
An order dismissing the interpreter suit filed by the plaintiff is decree likewise in adjudication
upon the claim of the defendant is also appealable as a degree
A decision under rules 3,4 and 6 of order 35 is an appealable order

Conclusion
6
We can conclude that in an inerpleader suit the real dispute is not Between the plantiff and the
defendant but amomgst the defendants themselves .in an interpleader suit plantiff position must be
one of impartiality and non arbitrariness An interpleader suit willl not lie if the plantiff has any
has any interest in the subject matter of the suit or in collusion with one of the claimants .The
provision intended to protect person with a bona fide intent from future condem that he didn’t
discharges obligation or another word with safeguard a person right to cost of Litigation who
claimed no interest in property or who is the plaintiff and to determine the correct claim over the
property or debt if no such right is protected or overlooked by the court an appeal can file before
the appellate court under order XLlll Rule 1 of code of civil procedure 1908