CPC Assignment
CPC Assignment
BILASPUR
1
ACKNOWLEDGEMENT
I, Piyush Vats Sharma studying in the 3rd Year in Guru Ghasidas University like
to state that in the completion of the project report of C.P.C on the topic
“INTER PLEADER SUIT”. I have received a lot of encouragement and support
from various quarters which need special attention.
I would first and foremost like to thank and present my sincere gratitude to my
teacher, Mr. Sudhanshu Shekher Bisen Sir who acted as a guiding light for me
and helped me with the completion on this project report. I would also like to
thank my friends for their co-operation and support which helped me in
successfully completing my project.
2
DECLARATION
3
CERTIFICATE
4
INTRODUCTION
An interpleader suit is one in which the real dispute is between the defendants
only and the defendants interplead, that is to say plead against each other
instead of pleading against the plaintiff as in ordinary suit. In every interpleader
suit, there must be some debt or sum of money or other property in dispute
between the defendants only, and the plaintiffs must be a person who claims no
interest therein other than for charges or costs and who is ready to pay or deliver
it to such of the defendants as may be declared by the court to be entitled to it.
Who claims no interest other than for charges or costs. These words indicate
that the plaintiff in an interpleader suit must be in a real position of
impartiality.1 A railway company which claims no interest in goods in its
possession other than a lien on the goods for wharfage, demurrage and freight,
may institute an interpleader suit where the goods are claimed by two persons
adversely to each other.2
A holds in his hands a sum of Rs. 5,000 which is claimed by B and C adversely
to each other. An institute an interpleader suit against B and C. It is found at the
hearing that A had entered into an agreement with B before the institution of the
suit that if B succeeded in the suit, he should accept from A Rs. 4,000 only in
full satisfaction of his claim. Here A has, by virtue of the agreement, an interest
1
Sambiah v Subba Reddiar (1951) 1 MLJ 353.
2
Bombay Baroda Rly. Co. v Sasoon (1894) 18 Bom 231.
5
in the subject matter of the suit, and he is not, therefore, entitled to institute an
interpleader suit. The suit must be dismissed.3
A party who has taken an indemnity from one of the claimants is not entitled to
file an interpleader suit.4 A suit is not necessarily an interpleader suit and
subject to the provisions of this section, merely because one of the reliets
claimed by the plaintiff requires the defendants to interplead together
concerning certain claims. The court must have regard to all the prayers of the
plaint to determine the exact nature of the suit.5 A plaint in an interpleader suit
can be amended by inclusion of new properties and joinder of new parties. 6
The term suit is not defined under the in the C.P.C. but by various decisions it
can be said that
"Suit ordinarily means a civil proceeding instituted by presentation of a plaint.
Civil suit is the institution of litigation for enforcement of civil rights (or
substantive rights, it may be against state or individual). A suit is resulted into
decree. Without suit there cannot be a decree.
There are four essentials of a suit7
1. Name of Parties (there must be two opposing parties) - In a suit there
must be at least two parties the plaintiff & the defendant. There is no
limitation with regards to number on either side.
2. Cause of Actions - it is a set of facts or circumstances that a plaintiff is
required to prove. A person is party to a suit if there is a cause of action
against him. The cause or the set of events or circumstances which leads
or resulted into presentation of a plaint or filing a suit. - lay man language
Legally - The cause of action means every facts which is necessary for
the plaintiffs) to be proved with a view to obtain a decree in his favor.
Cause of action means all essential facts constituting the right and its
infringement.
3
Murrietta v South America Co. (1893) 62 LJQB 369.
4
HariKarmakar v Robin AIR 1927 Rang 91.
5
Juggannath v Tulkakera (1908) 32Bom 592.
6
Raja BhagwatiBaksh Singh v Civil Judge AIR 1961 All 599.
7
P.M.Bakshi, Supplement to Mulla's Code of Civil Procedure (14th ed., Bombay: N.M.Tripati Private Limited,
(1992).
6
Every plaint must disclose a cause of action if not, it is the duty of the
court to reject the plaint - 0.7, R.11
3. Subject matter - there must be a subject matter (with what respect or
aspect civil dispute
Section-9. Courts to try all civil suits unless barred. The Courts shall
(subject to the provisions herein contained) have jurisdiction to try all
suits of a civil nature excepting suits of which their cognizance is either
expressly or impliedly barred.
4. Relief claimed by the plaintiff - no court will give relief unless relief is
specifically claimed by the party
Relief is of two types-
1) specific relief and
2) alternative relief.
Various stages of civil suit;
• Institution of suit or commencement of suit.
• Service of summon.
• Written Statement
• First hearing and framing of issues.
• Discovery.
• Production of evidence and final hearing.
• Arguments.
• Judgment.
• Preparation of decree.
• Execution of decree.
Every suit shall be instituted by presentation of a plaint and (every plait shall be
proved by affidavit) by amendment of 2002.- Sec.26
* Every suit shall be instituted by presenting a (plaint in duplicate to the court)
by amendment of 1999.
* Every plaint shall comply the rules contained in O.VI & VIl of C.P.C.
* A plaint shall not deemed to be duly instituted unless it complies the
provisions of O.IV
R. 1 & 2.
* Particulars of every suit be entered in a book called register of civil suit.
7
When a suit has been instituted, a summon may be issued to the defendant to
appear and answer the claim and may be served in prescribed manner (as
described in O.V of C.P.C.) within 30 days (amendment act of 1999)- S. 27
Section 6 - No Court Shall entertain any suit, the amount or value of the subject
matter of which exceeds he pecuniary limits of its jurisdiction. Pecuniary
Jurisdiction (Rule - 1)
Section 9 - The court shall have jurisdiction to try all suits of a civil nature
excepting suits of which their cognizance is either expressly or impliedly
barred. Jurisdiction relating to subject
matter ~ (Rule 2)
Section 15 - Every suit shall be instituted in the court of the lowest grade
competent to try it.
(Rule -3)
Jurisdiction
Jurisdiction means the extent of power of a court to entertain suits and
applications. It signify the power, authority, competency of the court to
adjudicate the disputes presented before it. It can be referred to be the right of
administration justice by means of law. It means the power of authority of a
court to enquiry to the facts to apply the law and to pronounce the judgement
and to carry it into execution.
Territorial Jurisdiction - Every court has its own specific local territorial
limits - fixed geographical boundaries
Pecuniary Jurisdiction - The pecuniary jurisdiction of a civil court refers to the
amount or the value of cases that can be presented before it for adjudication,
Jurisdiction relating to subject matter - It is power and authority of a court to
try a particular type of suit
Original Jurisdiction - In exercise of the original jurisdiction, court tries
original suits instituted in that court.
Appellate Jurisdiction - In exercise of the appellate jurisdiction, the court
hears appeals from decree and order passed by subordinate courts.
Note: - There are certain court which have only original jurisdiction but some of
the courts which have both original and appellate jurisdiction
Section 10. Stay of suit- No Court shall proceed with the trial of any suit in
which the matter in issue is also directly and substantially in issue in a
previously instituted suit between the same parties, or between parties under
whom they or any of them claim litigating under the same title where such suit
8
is pending in the same or any other Court in India having jurisdiction to grant
the relief claimed, or in any Court beyond the limits of India established or
continued by the Central Government and having like jurisdiction, or before the
Supreme Court.8
Explanation; The pendency of a suit in a foreign Court does not preclude the
Courts in India from trying a suit founded on the same cause of action.
Section 11. Res judicata. No Court shall try any suit or issue in which the matter
directly and substantially in issue has been directly and substantially in issue in
a former suit between the same parties, or between parties under whom they or
any of them claim, litigating under the same title, in a Court competent to try
such subsequent suit or the suit in which such issue has been subsequently
raised, and has been heard and finally decided by such Court.
SECTION-88 :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 therein other than for charges or costs
and who is ready to pay or deliver it to the rightful claimant, such other person
may institute a suit of interpleader against all the claimants for the purpose of
obtaining a decision as to the person to whom the payment or delivery shall be
made and of obtaining indemnity for himself:
Provided 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.
"To interplead" means "to litigate with each other to settle a point concerning a
third party.9
An interpleader suit is a proceeding by which a person from whom some
persons are claiming same property, debt or money and who does not himself
claim such property debt or money and neither dispute such debt, such person
can file a suit claiming that he is ready to pay or deliver the said property or
money to rightful claimant and can protect himself from legal proceedings by
calling upon such claimants to interplead, that is to say claim against one and
other so that title to the property or the debt may be decided. Meaning thereby,
8
T.L VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed.. Bombay: N.M.Tripathi Private
Limited, (1967).
9
T.L. VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay: N.M.Tripathi Private
Limited, (1967).
9
an 'interpleader suit is a suit in which the real dispute is not between the
plaintiffs and defendants but between the defendants only and the plaintiff is not
really interested in the subject-matter of the suit
Conditions to Institute Interpleader Suit
Following conditions must be satisfied to institute an interpleader suit:
• there must be some debt, sum of money or other property movable or
immovable in dispute;
• two or more persons must be claiming it adversely to one another;
• the person from whom such debt, money or property is claimed, must not
be claiming any interest therein other than the charges and costs and he
must be ready to pay or deliver it to rightful claimant; and
• there must be no suit pending in which the rights of the rival claimants
can be properly decided.
Scope & Applicability of the Section.
Where X is under a liability for any debt, sum of money, or other property,
claimed adversely by A or B or more, and he desires protection against a wrong
payment or delivery, he can file a suit under this section. The only way, in fact,
in which he can protect himself is by filing such a suit; otherwise if he litigated
with the claimant separately, he Would have to pay the costs of the successful
claimant. It is necessary that the liability to someone must be admitted and there
must be no collusion and no interest in the subject matter other than for charges
or costs.
A suit under this section is called an interpleader suit because the plaintiff is
really not interested in the matter, but only the defendants interplead as to their
claims. In fact, each of the defendants so interpleading is virtually in the
position of a plaintiff and his claim will be governed by the rules of the
Limitation Act.10 A reading of S. 88, Civil P. C., would clearly show that the
court does not have jurisdiction to travel beyond what has been admitted by the
plaintiff as due from him/her or it. The court cannot direct any further payment
or investigate into any question relating to the transaction alleged between the
parties.
In order to determine whether a suit is an interpleader suit under the section the
Court must have regard to all the prayers in the plaint. The mere fact that the
plaintiff requires the defendants to interplead as regards one of the reliefs
claimed would not necessarily make it an interpleader suit.11
10
AIR 1925 Mad 497 (562) (DB).
11
(1908)32 Bom 592 (597) (DB).
10
Where a party in the position of a mere stake-holder is made a defendant in a
suit, his proper course is to deposit the money (if it is a suit for money) into
Court and ask that the parties really interested may be substituted for himself as
defendants. Such deposit by him is a valid discharge for him and if the Court
paid it to a wrong person he is not responsible. But in view of the definition of
the expression 'interpleader suit' and the procedure governing such suits given in
this section, the Court of Wards can institute interpleader suit against several
claimants, when, on the death of any person of whose property the Court of
Wards has assumed jurisdiction, the succession to his property is disputed. Such
a suit falls prima facie within this section and is not barred by S. 48 of the
Punjab Act.12 Also, Order 35, Rule 5 does not bar all interpleader suits as
against the landlord. It bars such a suit when a claim adverse to the landlord is
put forward by a person not claiming through the landlord himself i.e. when
such an adverse claim is put forward on a title independent of the landlord.13
Where in ejectment petition filed by both rival landlords against tenant, a Bank
on ground of non-payment of rent - Petitioner one of rival landlord claimed
himself to have become exclusive owner of suit property under mutual partition
and Bank was not a party to said compromise or settlement - Interpleader suit
filed by Bank for deciding title of suit property would be maintainable. Where
in an interpleader suit, the original plaintiff, who was a tenant was not claiming
any title to the property and the rival defendants were claiming title to the
property and in fact, the dispute was between the rival defendants and not
between the plaintiff and the defendants to the suit, the order holding that one
set of claimants to the property will act as a plaintiff and the other set of
claimants as defendant to the suit and the rights of tenant would be safeguarded
by holding that he would go on depositing the rent in the Court was proper.
Claims must be bona fide and adverse to one another.
The claims of the defendants must be bona fide ones, though they need not have
a common origin. The Court must be satisfied that there isa real question to be
tried. A mere pretext of conflicting claims is not sufficient. Where there was no
claim or counter claim between the parties, the provisions of S. 88 would not
apply.14 The defendants must also claim the money or property adversely to one
another from the plaintiff.15 A decision given on the claims of the co-defendants
in an interpleader suit will operate as res-judicata between them.16 It is,
however, not necessary that the plaintiff must show the existence of an apparent
title in each of the defendants claiming the property in dispute. Nor is it
12
AIR 1954 Pun 103 (104) (DB).
13
(1979) 2 Cal L 7 (15).
14
(1992) 1 Pat UR 365 (372).
15
AIR 1922 Cal 138 (139) (DB).
16
AIR 1928 Oudh 1:55 (179).
11
necessary that the claims should be legal claims or rights. Equitable claims and
rights can be entertained and given effect to.
Claims must be with reference to the same subject-matter.
The rival claims must be with reference to the same debt, sum of money, or
other property, but not necessarily to the same extent. It is thus not necessary
that each of the defendants should claim the whole of the subject-matter of the
suit. Similarly, it is not necessary that the plaintiff should admit the claim as
made by the rival claimants in its entirety. He may ask them to interplead to the
extent he admits liability.17 The "same debt, sum of money, or other property"
would not, it is conceived, include a claim for unliquidated damages, though it
might include a chose in action. Order 6, R. 17 applies to an interpleader suit
and if it appears from the pleadings that there is some further property besides
the subject-matter of the interpleader suit which is part of the estate but has
somehow been omitted from it, it can be brought within the suit by way of
amendment of the plaint. This section does not prevent such a procedure being
adopted.18
Plaintiff should claim no interest in the subject-matter.
The plaintiff must be in an impartial position.19 If he has, in some way,
identified himself with one of the parties, in the sense that it will make a
difference to him which of the two succeeds, an interpleader suit will not lie.20
Thus, a person who has taken an indemnity from one of the claimants, cannot
file a suit under this section, though he will not be refused relief, if he has
merely a natural affinity for one side rather than the other. A right of lien. e. g.,
for wharfage, demurrage or freight, is not an interest in the property for the
purposes of this section.21
"Charges or costs", meaning of.
The words "charges or costs" include costs of suit, freight, warehouse rent, dock
rent, wharfage, demurrage and other charges. A lien can be declared for such
charges in an interpleader suit, but the amount of those charges, if disputed,
ought to form the subject of a separate proceeding between the lien-holder and
the adjudicated claimant.22 (3)
Plaintiff must be ready to payor deliver the property to the rightful owner.
(Order 35, Rule 2.).
17
AIR 1966 AndhPra 92 (95).
18
AIR 1961 ALL 559 (561).
19
T.L. VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed., Bombay: N.M.Tripathi Private
Limited, 1967).
20
AIR 1952 Mad 564 (564).
21
(1894) 18 Bom 231 (234,235).
22
(1894) 18 Bom 231 (235).
12
Addition of parties in interpleader suit. (Order 1, Rule 10.)
23
(1886) 13 Cal 90 (93, 94) (DB).
24
AIR 1938 Cal287 (290).
13
Clause (a) of R. 4 (1) of O. 35 provides for substantive relief of a declaration by
the Court as to the discharge of the plaintiff from all liability to the defendants.
Such a declaration prevents a loss. It prevents a liability being fastened upon the
plaintiff.25
It is only in cases where the amount is not in dispute and where plaintiff pays
into court the entire amount that the court may declare that the plaintiff is
discharged from all liability. Where the amount is in dispute, the Court may
declare that the plaintiff is discharged from liability only to the extent of the
amount admitted and leave parties to settle their disputes for the balance
otherwise or in other proceedings.26 In an interpleader suit which was not
properly instituted or which was instituted mala fide or with ulterior motive the
discretion of the Court in awarding costs as against the plaintiff is not in any
way taken away.
Where order was passed granting permission to open sealed cover in presence
of advocate of both parties and opening of packet was considered to be essential
in interest of both the parties and defendant also reported no objection if Court
permitted the same, objection for opening of sealed cover by defendant at stage
of recording evidence on ground that Court had not adopted proper procedure
under O. 35, R. 4 cannot be allowed.27
Non-appearance of claimants.
On the non-appearance of claimants in a properly instituted interpleader suit the
proper course for the Court is laid down under sub-rule (1). It is competent to
the Court-
(1) to discharge the plaintiff from all liability to the claimants-defendants in
respect of the subject-matter in dispute and dismiss him from the suit,
(2) to direct the plaintiff to pay the amount into court to the credit of the proper
claimant after deducting his costs.
(3) to direct the claimants-defendants to apply for payment and when they
appear make one of them a plaintiff and raise an issue, and
(4) to restrain by injunction either defendant in a proper case from taking any
proceeding against the plaintiff.28
Sub-rule. (3).
The sub-rule expressly provides that once the suit has proceeded on trial it shall
be tried like any other suit in the ordinary manner, thus attracting the provisions
25
(1977) 79 Bom LR 184 (187, 188).
26
AIR 1966 AndhPra 92 (96).
27
AIR 2004 AP 165 (167).
28
AIR 1919 Bom 15 (16).
14
of O.1, R.10 and 0.6, R.17 of the Code. The Court can, therefore, allow
amendment of plaint by inclusion of certain property in the subject-matter of the
suit and by addition of certain parties as defendants.29
An interpleader suit against a company in liquidation is a suit or proceeding
against the company within S. 446 of the Companies Act, 1956 and such a suit
cannot be filed or continued without the leave of the Company Court in which
liquidation proceedings against the company are pending.
Appeal
An appeal lies from an order under this rule (0.43, R.1, cl.(p).) An order
dismissing the interpleader suit itself or an adjudication upon the claims of the
defendants in the interpleader suit will, however, be a decree and appealable as
such under Section 96 of the Code. An order adding a defendant to an
interpleader suit on his application is one passed under O. 1, R. 10 and not
under this rule and, as such, is not appealable.30
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.
Scope of the rule.
This rule provides for the award of costs to the original plaintiff. Such costs
when awarded will be deducted from the fund on its being brought to Court or
will be a first charge upon the fund or subject-matter.31 Thus in an interpleader
suit which is not properly instituted or which was instituted mala fide or with
ulterior motive the discretion of the Courtin awarding costs as against the
plaintiff is not in any way taken away.
But the plaintiff will not be entitled to costs which have been unnecessarily
incurred.
Appeal. An appeal lies from an order under this rule.
29
AIR 1978 Pat 151 (152) (DB).
30
AIR 1958 Ker 304.
31
(1893) 18 Born 231 (236).
15
CONCLUSION
16
BIBLIOGRAPHY
BOOKS REFERRED:
* D.V.Chitaly, AIR Commentaries: The Code of Civil Procedure (Nagpur: All
India Reporter Limited, 1972).
M.S.Mehta, A Commentary on The Code of Civil Procedure (Allahabad:
Wadhwa and Company, 1990).
* C.K.Takwani, Civil Procedure (314 ed., Lucknow: Eastern Book Company,
1996)
* P.M.Bakshi, Supplement to Mulla's Code of Civil Procedure (14' ed.,
Bombay: N.M. Tripati Private Limited, 1992).
T.L. VenkataramaAyiar, Mulla on The Code of Civil Procedure (13th ed.,
Bombay: N.M. Tripathi Private Limited, 1967).
WEBSITES REFERRED:
* www.vakilno1.com/bareacts/civilprocedure/s
* indiankanoon.org/search
* www.legalserviceindia.com/article/
17