What Is Interpleader Suit - Ipleaders
What Is Interpleader Suit - Ipleaders
- iPleaders
https://www.santoslawpa.com/civil-litigation.php
This article is written by Shruti Singh from LLoyd Law College, Greater Noida.
Table of Contents
1. Introduction
1.1. Interpleader suit and its condition
1.1.1. Difference between
1.1.1.1. Plaint in an interpleader suit
1.1.1.1.1. How to file an interpleader suit?
1.1.1.1.1.1. Who cannot file an interpleader suit?
1.1.1.1.1.2. Interpleader suitcases
2. Interpleader suit format
3. Interpleader suit in the USA
4. Conclusion
Introduction
Meaning and definition
When the plaintiff on behalf of the claimant filed a suit for choosing the actual owner of the
property then it is called an interpleader suit. When a Plaintiff is not in the direct possession
of the property or thing, he files a suit. Petitioner has the indirect possession of the
property. There is more than one defendant in this suit. Because in this suit more than one
defendant can file the suit for the claim of property. When the actual owner of the property
dies without transferring the property to anyone then the property transfer becomes the
interpleader suit. Other than that the plaintiff may file a suit for the movable or immovable
property to deliver the property to the defendant because more than one person has filed a
suit for the claim of property. Debt is required in this suit or some amount of money for the
dispute which is between two defendants. Defendants can claim some debt from another
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defendant of the property. Only the plaintiff is the one who cannot claim any cost and is
also ready to deliver the property to the defendants. Interpleader is defined in Section 88 of
the Civil Procedure Court.
Examples
1. Sanjeev has a 2 BHK flat in the co-operative colony. He has two wives. Because of some
diseases, he caused to die. After his death, his wives claimed the property. The father of
Sanjeev filed a suit in the court to decide the actual owner of the property.
2. Akhil has 2 crores fix deposit. He has two wives and both wives have 1 child. Both of
them claim the money for their child maintenance. The bank filed a suit in the court to
know the order related to the real owner of the money for the maintenance of the child.
Res Judicata
Res Judicata is the oldest law that is defined in the Civil Procedure Court under section 11.
Res Judicata means the suit which has already got the judgment from the court. If any suit
is filed under Res Judicata then the same subject-matter cannot filed as a new suit, in other
form of law or any other court of law. If by mistake any case is filed in any other court of
law which is already filed under Res Judicata then the judge can dismiss that petition
directly without any further proceeding.
Where interpleader suit may be reinstituted and Power to state case for the opinion of the
Court is defined under Section 88 and 90 of the Code of Civil Procedure 1908. When
defendants blame each other for the claim of the same property, debt or sum of money
from the plaintiff who is not in the direct possession of the property or debt and also he
doesn’t claim interest and ready to deliver the property and he is ready to give the property
to the claimant. The suit which is filed related to Res Judicata cannot be instituted in
another court.
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The suit is filed when the object is to be claimed by the defendants. The claim of the suit
gets adjudicated. The suit is filed when any person in any condition cause death and has
left some of the property without transferring to other members of the family then that
other family member has to claim the property or money from the bank and then the bank
has to become claimant to file a suit in the court to decide whomever the property has to be
transferred. This type of suit filed in the Res Judicata court.
3. Both defendants can claim each other for the property or money.
4. The person who has to pay the debt to the defendant is not valid for any interest.
5. The Claimant is willing to pay the debt, or some amount of money, or property to the
defendant.
7. This suit cannot be filed twice if the judgment is given in Res judicata.
Test of applicability
The test of applicability is done during the suit when the pleading is going on. This test is
done by a court of law, after this test they decide about the next owner of the property or
money. This test is very important for the interpleader suit. Because in an interpleader suit
one or more defendants are there. In a test of applicability, some questions are asked from
the defendant during the pleading.
The Plaintiff is the person who only filed a suit in the court on behalf of defendants for the
claim of property which is claimed by the different defendants. The Plaintiff has no direct
possession of the property. He has an indirect possession of the property. But in this type of
suit, the only plaint can file a suit. The defendant is not allowed to file a suit.
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Difference between
1. The person who makes the interplea. a lawsuit and brings the third party
in his lawsuit who is not a part of
the liability.
3. Examples: A and B claim the property of her Example: A is the person who slips
husband with C. C can sue A and B according to and falls in the owner’s house and
the interpleader suit in the court. A and B will caused an injury and then he sues
litigate in court who owns the property. the owner for his injury.
The plaintiff who sues the defendant cannot claim any interest in the subject matter in
dispute in extra. They get charges or costs for the interpleader suit. There were many
defendants in the interpleader suit to claim the debt or property. There is no collusion
between the plaintiff and defendant. Only collusion between defendants. Where the plaintiff
is capable of paid or is capable to place in the custody of the court the plaintiff has to pay or
place it before he is entitled to any order in the suit. When the defendant sues the plaintiff
in an interpleader suit in the same subject-matter in which the suit is already pending which
is filed by the plaintiff. The proceeding will continue but against the plaintiff.
1. The suit can only be filed by the plaintiff and the plaintiff can be a bank in any subject-
matter of interpleader suit. No landlord can sue to his tenant or no family member can
sue the defendant.
5. The plaintiff from whom the property is claimed, must not claim other charges or cost
who is ready to pay or deliver it to the rightful claimant.
First hearing
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In the first hearing court involved in the proceedings to know the contention of the parties.
In an interpleader suit plaintiff only is allowed to file a suit against the defendant when the
defendant claims the debtor property from the plaintiff. Plaintiff is not in the direct
possession of the property. He filed the suit on behalf of the defendant. After the suit is filed
the plaintiff gets free from all liability of the suit. He gets the substantive relief. The plaintiff
pays the court for the suit which is filed in the court. That amount never comes into
dispute. After paying the court plaintiff gets free from all liability. Where the decision is
given in favor of both parties then the opening of the packet becomes more important for
the interest of both parties.
Non-appearance of claimant
In any case, any party fails to come on the date of proceeding even his statement gets
recorded already then also proceeding to get adjourned. He will be dismissed from the suit.
And also his amount gets deducted. The plaintiff can raise an issue in case one of the
parties fails to give the payment.
Sub Rule 3
Once suit proceeding has started with the provisions of rule 10 and rule 17 then the court
can allow the amendment of the plaintiff by the inclusion of any property in the subject-
matter of the suit and by adding certain parties in the suit as a defendant. According to rule
10 of orders, 1 says that if the suit is filed in the name of the wrong plaintiff and if the court
doubted about the wrong plaintiff. The court can consider the mistake as a bonafide mistake
in any stage of the trial. The court can add new parties in the suit as a plaintiff or
defendant.
When the defendant sues the plaintiff in the same subject-matter, even the previous suit is
pending the other suit will be filed in the court and suit is against the plaintiff in the
previous suit also. Cost may be the same as for the plaintiff which he has to pay to the
court.
Defendants cannot file the interpleader suit because defendants are the claimant who
claims the property or debt from the plaintiff. The plaintiff is only allowed to file a suit in the
court. And the plaintiff only pays the cost of the suit in the court. But defendants only
litigate in court in the subject-matter. Defendants are free from all liability after filing the
suit in the court.
An Agent cannot file an interpleader suit against his owner or the party. He cannot even
claim anything from the tenant and landlord.
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Case law:
The tenant filed a case against the landlord in court under an interpleader suit for
threatening them to pay the rent of the house. But according to the tenant, he is paying the
rent according to the date and time. Defendant 1 claimed that he lowers the rent as the
rent is 250/- per month but he lowers the rent to 200/- per month. But after the relevant
fact, it has been noticed that defendants tried to threaten the tenant to pay the rent. When
the written statement is given by the defendant he admitted that tenant is paying 250/- per
month. But according to order 33, rule 5 of CPC the suit is not maintainable. The RC and E
officer observed that the tenant did not give any evidence related to his shop and it is
clearly mentioned in the evidence that the tenant is not the owner of the shop and had let it
out to one Alladia. He accordingly declared that the shop was vacant.
Railway company can file a suit against agent and third party under order 35 of rule 5.
Case law:
1. Chhaganlal Himatlal vs. the Bombay, Baroda and Central India Railway
The railway company has filed a suit in the interpleader suit against the agent and third
party claiming consignor that the company is not an agent of the consignor. According to
the provisions of the railway act, the company is in direct contract with the consignor for
the carriage of goods. So the railway company has claimed that the company is not an
agent of the consignor but they are in contract with the consignor for the carriage of goods.
The court gives the decision that in virtue of Order XXXV, Rule 5 of the Civil Procedure
Code, railway company is not competent to constitute an interpleader suit as it was an
agent of the consignors.
No agents can sue their principles and no tenants can sue their landlords in the interpleader
suit for compelling him to interplead with other person makes a claim related to the tenants
through the landlord. If the other person is claiming the property with the old landlord who
has no direct possession of the property and tried to ask for the rent with the tenant. Then
tenant can file an interpleader suit.
Case law
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Shanti Devi who died in the year 1922 is the owner of the premises. After the death of the
owner of the premises the petitioner, Neeraj Sharma claimed that he is the owner of the
premises. The respondent takes the premises in dispute from Smt. Shanti Devi who is
already dead. Then the petitioner filed a petition for the application for ejectment of the
respondent society on the ground of non-payment of rent. After that, the petitioner filed a
second petition based on the same ground. In judgment, the provisions of Order 35 Rule 5
of C.P.C are not applicable to the case because the plaintiff does not pointed out to anyone
defendant to be his landlord.
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 pay or place it before he can be entitled to any order
in the suit.
Interpleader suitcases
Rajan Sharma And Others vs Labh Singh And Others 6th may 2011
The court finds no merit in the appeals. According to Order 35, Rule 5 of the Code of Civil
Procedure, which prohibits the tenant to file a suit against his landlord for the purpose of
compelling him to interplead with any person other than making claim through such
landlord.
The respondent is the owner of the Jaguar car. The third person has forced Mr. Caldwell to
sell the car for a cheque amount of 965 dollars and a deposit of 10 dollars. Respondent
agrees to sell the car and he sold the car and got the cheque and when he tried to convert
the cheque into cash. The cheques got dishonoured. The respondent goes to the police
about the whole incident and also informed this incident to the Automobile Association. The
respondent told that Mr. Norris has sold the car to different dealers. The judgment is given
by the high court. The court said that the contract was validly rescinded. It was so without
communication, but through an unequivocal act of election, demonstrating Caldwell no
longer wishes to be bound.
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The first has deposited the money of Rs 2000 in the bank in his savings account. After that,
he fulfilled the form of the bank to recover the amount of money he deposited in the bank
in his savings account. But his brother the second defendant has given notice to the bank
that the money should not be recovered of the 1st defendant because that money is the
share of the family members also. Then the suit has been filed by the bank against the
defendant’s related to the debt. The council dismissed the petition saying that Interpleader
Suit is not maintainable and the second ground for dismissal of petition is in regard to this
deposit the relationship between the bank and the first defendant was that of principal and
agent.
The petitioner has filed a suit against the respondent. But the case gets dismissed by the
civil judge. Then the third petitioner has filed a case against petitioner to recover the rent
along with the profit He filed an interpleader suit. In the judgment of this case the judge
dismissed the application of the petitioner under Order 35 Rule 5 of CPC.
The respondent has filed a suit against the petitioner than again petitioner has filed an
interpleader suit against the respondent. Shanti Devi who died in the year 1922 is the
owner of the premises. After the death of the owner of the premises the petitioner, Neeraj
Sharma claimed that he is the owner of the premises. The respondent takes the premises in
dispute from Smt. Shanti Devi who is already dead. Then the petitioner filed a petition for
the application for ejectment of the respondent society on the ground of non-payment of
rent. After that, the petitioner filed a second petition based on the same ground. The
Provisions of Order 35 Rule 5 C.P.C is not applicable in the case.
This is related to tax. The petitioner has the factory in which he manufactures the vehicles
in the state of Maharashtra and the state of Rajasthan. The petitioner claimed that he has
regional offices where his vehicles all governmental works are done related to tax and many
more. The tax law came into question. The judgment held that:
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2. The order of assessing authority is accepting form F and passed during the assessment
at any point.
3. Its amenability to the power of reopening and revision depends upon the provisions of
the concerned sales tax enactments by virtue of the operation of section 9(2) of the
Central Act.
4. It is not possible to accept that an order under Section 6A(2) has an independent
existence.
6. If orders accepting Form F are sought to be reopened, it can be done as part of the
reopening of assessment or may be done independently, which would depend upon the
language of the relevant provisions of the concerned State Acts.
1. Rajan Sharma
2. Labh Singh
3. Labh Singh
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3. Respondent 1 and 2 have submitted that the interpleader suit filed by the petitioner is
not maintainable.
6. The respondent no 1 and 2 have accepted this demand of petitioner of giving rent to the
court.
7. The tenant has the right to file a suit against all the owners of the shop.
Jurisdiction
No relief claimed because this case gets dismissed because the tenant cannot file a suit
against the landlord.
Plaintiff
Advocate for
Verification
I,………….., verify that content from 1 to the last para is valid and correct according to my
knowledge and belief and is concealed there.
Signature
Plaintiff
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Interpleader governed by 28 U.S.C. and 1335 which allows an individual with a stake which
is, or maybe, claimed by two or more adverse claimants, to interplead those claimants and
bring them into a singular action. Title 28 (Judiciary and Judicial Procedure) is the portion of
the United States Code (federal statutory law) that governs the federal judicial system and
U.S. Code 1335 provides for interpleader suit according to which The district courts shall
have original jurisdiction of any civil action of interpleader or in the nature of interpleader
filed by any person, firm, or corporation, association, or society having in his or its custody
or possession money or property of the value of $500 or more, or having issued a note,
bond, certificate, policy of insurance, or other instrument of value or amount of $500 or
more, or providing for the delivery or payment or the loan of money or property of such
amount or value, or being under any obligation written or unwritten to the amount of $500
or more.
Section 88 of the order no 35 of the C.P.C under Indian law specify that quantum of the
property against the title of the interpleader suit.
While according to the U.S law 1335 provides the money or value of the property is having
a note, bond, certificate, policy of insurance.
In the Indian Law, there were no types of interpleader suit but in the U.S law, there were
types of interpleader suit.
Conclusion
At last, I would conclude my topic by saying that interpleader suit means the suit which was
filed by the plaintiff on behalf of defendants because the actual owner of the property or
debt dies and plaintiff who is in the indirect possession of the property can file a suit on
behalf of defendants, who claim for the ownership of the property. Because this has one
more than the defendant. There is a collusion between defendants. Defendants only litigate
in court in front of judges. Plaintiff has no direct possession of the property he is only there
to sue in court to decide who will be the actual owner of the property or debt. He is liable
for the amount of money for the suit filed. An interpleader suit is defined in the Civil
Procedure Court. Interpleader suit can only be file under Res Judicata. This suit cannot be
reviewed in any other court of law. This suit once reviewed in the court of law then it cannot
be reviewed twice.
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