Qn.

Brief facts
Isingoma hired John’s car. As he was driving through Mbarara City, a one Muntu
confronted him saying that the vehicle was his. He is in a dilemma as to whom of the
two claimants is the actual owner.
Issue (s)
Whether Isingoma can apply to court for an Interpleader reilief.
Law Applicable
Civil Procedure Act Cap 71
Civil Procedure Rules S.I -71
Case law
Halsbury Laws of England
Text books
Harvard Law Reviews

Resolution

Interpleader is a civil procedure device that allows a plaintiff or defendant to initiate a

lawsuit in order to compel two or more other parties to litigate a dispute. 1.An
interpleader action originates when the plaintiff holds property on behalf of another,
but does not know to whom the property should be transferred. This was emphasized
by Chafee Jr; Zechariah (June 1946) “Broadening the second stage of
interpleader”2
Where a stakeholder, with no personal interest in property he is holding, receives rival
claims such property from two or more other persons he may seek relief by way of
interpleader; that is, the rival claimants will be made to argue their claims against
each other (interplead) before the court where the interpleader may be instituted.
Where two or more persons claim adversely to one another and the same debt, sum of
money or other property, movable or immovable from another person, who claims no
interest therein other than for charges or costs and who is ready to pay or deliver to
the rightful claimant such other person may institute a suit of interpleader against all
claimants.

1
Halsbury laws of England Vol. 13
2
Harvard Law Review.54
The Civil Procedure Act3 provides that where two or more persons claim adversely
to one another the same debt, sum of money or other property, movable or
immovable, from another person, who claims no interest in it other than for charges
or costs and who is ready to pay or deliver it to the rightful claimant, that other
person may institute a suit of interpleader against all the claimants or, where a suit
dealing with the same subject matter is pending, may intervene by motion on notice in
such suit, for the purpose of obtaining a decision as to the person to whom payment
or delivery shall be made, and of obtaining indemnity for himself or herself; except
that where any suit is pending in which the rights of all parties can properly be
decided, no such suit of interpleader shall be instituted.

Under O. 34 rule 24, it is provided that in every suit of or application by way of

interpleader, the applicant shall satisfy the court by way of affidavit or otherwise;
(i).That there is no collision between the applicant and any of the claimants
(ii).That the applicant is willing to pay or transfer the subject matter into court
or dispose of it as court may direct.
The basis of the right to interpleader relief is in the existence of a conflict between
two or more persons claiming the same property or debt as was enunciated in the case
of Famous Cycle Agency Ltd Vs Mashulular Ramji5. The object of an interpleader
proceeding is to extricate an applicant from the embarrassment of being sued by more
than one party in respect of the same subject matter and if putting the claimants in a
position of using interpleading proceeding if they wish to enforce their claim.
The rules of court provide that where a person is or expects to be sued by two or more
claimants making adverse claims to;
(i). any property or the proceeds thereof, including real estate in some jurisdictions
or only
to money, goods, chattel or;
(ii). to a debt which the holder isn’t disputing
The holder may make an application to the court for interpleader relief by having the
claimants appear I court to establish and have settled respective claims to the property

3
Section 59
4
Civil Procedure Rules S.I-71
5
H.C.C.S No. 88/1992/94 V KALR 58
or debt. Thus, in the instant case Isingoma may make an application to court for an
order of interpleader relief by having both John and Muntu appear in court.
An application for interpleader relief should be supported by an affidavit showing the
following;
(a) That the applicant claims no beneficial interest in property in dispute than for
charges or costs. An application is not barred because he has a lien over the
goods in question for storage, or a claim for commission on the sale of goods. An
application is barred where he has no claim to the subject matter of the claim but
has a financial stake in the result of the proceeding; -
(b) That the applicant does not collude with any claimant to the property. Collusion
does not necessarily entail anything morally wrong, but the applicant must on
“play on the said as one of the claimants”.6
(c) That the applicant is willing to deliver the property to court or dispose of it as
court may direct. This provision has been broadly interpreted and provides relief
not only in respect of any debt, money or goods but also in respect of chattels
and choses in action. A claimant in turn must also support his claim by a
personal affidavit on the application for interpleader. The following are the
conditions for an order of interpleader pleader relief;
(i). Expectation of or Actual suit; an applicant for interpleader must be sued
or expects to be sued, and if he expects to be sued, there must be real
foundation for the expectation, a mere anticipation is insufficient as was put in
Watson Vs Part Royal (caterers)7 The interpleader will be refused when the
applicant knows that the allegation that an action is threatened is groundless or
when there is genuine doubt whether any adverse claim existed; such as
insurance moneys payable under a fire insurance as was decided in Suns
Insurance Office Vs Galinsky8
(ii). Applicant in possession of the disputed subject matter; An applicant
for interpleader must be in possession of the subject matter in dispute for
under the rules he must satisfy the court that he is willing to pay or transfer the
property in court. If the applicant has disposed off the property, it is not

6
Fredricks and Pelhams Timber buildings Vs. Wilkins (1971) 3 ALLER 545 at 551

7
(1961) 2 ALLER 346
8
(1914) 2KB 545
 sufficient for interpleader relief for the claimant to offer pay over the value of
the property to the person entitled.
(iii). Adverse claims by claimants. For interpleader, there must be adverse
claims to the same property or debt by the claimants. This was put by court in
Sargent Vs. Gautama9. The adverse claims need not have a common origin.
The claim must be actual and not merely anticipatory, but the claim may be in
nature of a lien or right to possess.
(iv). Applicant liable to only one claimant.; Liability only lies when the
applicant is liable to only one of the claimants in respect of the same subject
matter as was in Greatovex Vs Shackle 10and an interpleader relief will be
refused, where it appears that the applicant is liable to both claimants.
(v). Adjudication in other proceedings; Interpleader applications are
generally refused when the matter can be adjudicated in other proceedings.
(vi). Applicant’s claim finalised; An application for interpleader relief should
be made immediately before or after the commencement of the proceedings
and should not be granted where a claimant has already obtained judgment
against the applicant for a debt or where the judgment has been given by
consent. This was said in Plant Vs Collins11
(vii). Cause of action for each claimant; Each claimant must have a cause of
action against the applicant, so interpleader does not lie where the applicant is
under an obligation to only one of the claimants, such as when the applicant
by the assignment of a contract has a given colour of the title to a claimant or
where a claimant may pay only one of them only without incurring liability.
(viii). Agent or Bailees; An application for interpleader relief who is in
possession of goods say as agent or bailee under a contract with one of the
claimants is not barred from obtaining the relief. Claimants on interpleader
may include husband and wife as was in De la Rue Vs Herny Person &
Stockwell Ltd12 a partner as claimant, Peak Vs Carte (1916) 1 KB 652
claimant of Trust Property Usher Vs Martin (1889) 24 QBD 272 attaching
creditors or assignees etc

9
(1968) EA 338
10
(1895) 2 QB 249
11
(1913) 1 KB 242
12
(1930) 2 KB 164
 (ix). The hearing of the Application for the interpleader relief; On the
hearing of the application for interpleader relief, the court will usually grant an
order releasing the applicant from the conflicting claims and order the
payment of his costs and charges upon delivering custody of the property to
the court. The charges would include the applicant’s out of pocket expenses
for his care and trouble with custody of the property. Following the
determination of whether the application for interpleader should be granted,
the court must then determine the issue between the claimants.
The granting of the interpleader relief is discretionary and cannot be claimed
as of right. The court will exercise its power when it is satisfied that in the
circumstances of the case, it is just and proper that the relief should be granted.
Exparte Mersey Docks and Harbours13

The procedure
The application for interpleader is by Originating Summons under the Civil Procedure
Act14 and O. 34 rule 7. in Re Messrs Katende Sempebwa15
The summons must be served on the plaintiff if proceedings have already been issued
and on both or all the claimants to the property. If the proceedings have not yet been
issued, the court may either;
(a) Order that the issue be stated and tried, with a direction as to who should be
plaintiffs and defendants.
(b) If all parties’ consent or the facts are not in dispute, summarily determine any
question of law and resolve the dispute.
(c) If a claimant fails to attend, order that he should be debarred from prosecuting
his claim against the stakeholder.
In submission therefore, Isingoma should apply to court for an order of interpleader
relief because he is uncertain of who the owner of the vehicle is but in his bid to
lodge in the application, he should make sure that the procedure as laid herein above
is followed.

13
(1899) 1 QB 646
14
Section 59
15
HCCS No. 521 of 1996 (unreported)
REFERENCES

The 1995 Constitution of Uganda (as amended)

Civil procedure act cap 71
Judicature Act, Cap13
Government Proceedings Act
Civil Procedure Rules SI- 71
Civil Procedure Amendment Rules
Case law
Halsbury Laws of England

Civil procedure bench book

M. Ssekana and S. Ssekana Civil Procedure and Practice in Uganda