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Drafting Assignment Prachi-057 Section-B

Drafting assignment

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Prachi Sharma
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12 views6 pages

Drafting Assignment Prachi-057 Section-B

Drafting assignment

Uploaded by

Prachi Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AMITY LAW SCHOOL, NOIDA

DRAFTING, PLEADING AND CONVEYANCING


ASSIGNMENT
TOPIC: INTERPLEADER SUITS

SUBMITTED TO -
Faculty Name - Ms. Archana Aggarwal
Course Code – Law504
Course Title – Drafting, Pleading and Conveyancing

SUBMITTED BY -
Name - Prachi Sharma
Enrolment No. - A032170123057
Semester – 4th

Program – LL. B (Hons.)

Section- B

Page 1
INTERPLEADER SUITS- A BRIEF INTRODUCTION
In India, interpleader suits are governed by the Code of Civil Procedure, 1908 (CPC),
specifically under Order 35 of the CPC, which deals with "Interpleader Suits." The provisions
related to interpleader suits allow a person or entity holding disputed property or money to
initiate a lawsuit to resolve conflicting claims without being involved in the dispute itself. The
purpose of an interpleader suit is to seek judicial determination of who is entitled to the disputed
property or funds.

Relevant Provisions under the CPC:


Order 35 - Interpleader Suits
Order 35 of the CPC contains specific rules for filing interpleader suits. These provisions govern
the process and procedure for bringing an interpleader action before the court.
Order 35, Rule 1 – Who May Bring an Interpleader Suit
• A person or party who holds a property or money in dispute (referred to as the
stakeholder) may file an interpleader suit when they are faced with competing claims
from two or more parties, and the party holding the disputed property does not know to
whom it should be delivered.
• The stakeholder does not have any interest in the outcome of the dispute and wishes to
avoid liability by asking the court to determine which of the competing parties is entitled
to the property or money.
Example: If a bank receives claims from two individuals regarding the same account or
insurance money, the bank may file an interpleader suit to resolve the claims.
Order 35, Rule 2 – Conditions for Filing an Interpleader Suit
• The stakeholder may file an interpleader suit when:
1. There are two or more claimants to the same property or fund.
2. The stakeholder has a bona fide doubt regarding the rightful ownership or
entitlement of the property or funds.
3. The stakeholder does not have any personal interest in the subject matter of the
dispute, other than holding it temporarily for safekeeping.
• If these conditions are met, the stakeholder may file the suit, requesting the court to
determine the rightful claimant.
Order 35, Rule 3 – Procedure for Interpleader Suit
• The court will examine the claims of the competing parties and determine who is entitled
to the disputed property or money.

Page 2
• The stakeholder can deposit the disputed property or funds with the court and ask the
court to resolve the issue.
• The court will order the competing claimants to present their claims and defenses in the
suit.
• The court will issue a decree deciding the rightful claimant, relieving the stakeholder of
any liability regarding the property or money in dispute.
Order 35, Rule 4 – Costs
• The court may direct that the costs of the interpleader suit be borne by the losing party
or parties.
• Alternatively, the court may direct that the costs be shared among the parties, depending
on the circumstances.
Order 35, Rule 5 – No Relief to the Stakeholder
• The stakeholder does not seek any relief or decision in favor of themselves. Their only
purpose is to deposit the property or funds with the court and seek a judicial
determination regarding the rightful claimant.

Key Features of an Interpleader Suit under the CPC:


1. Purpose: To resolve competing claims over a property or fund without the stakeholder
being involved in the dispute.
2. Bona Fide Doubt: The stakeholder must have a bona fide doubt about to whom the
property or money should be delivered, leading them to seek judicial intervention.
3. Deposit of Property: The stakeholder may deposit the disputed property or funds in the
court to avoid being liable for its delivery.
4. Court’s Determination: The court will decide which of the competing claimants is
entitled to the disputed property or funds.
5. Relief to Stakeholder: By filing an interpleader suit, the stakeholder is generally
protected from further liability regarding the property or funds.
6. No Direct Claim: The stakeholder does not assert any claim over the property or funds;
their role is only as a neutral party holding the disputed asset.

Example of an Interpleader Suit under the CPC:


Let’s assume a bank holds a deposit account, and two individuals (A and B) make competing
claims over the funds in the account, each asserting they are the rightful owner. The bank, being
a neutral party, may file an interpleader suit under Order 35 of the CPC, depositing the money
with the court and seeking the court’s determination of who is entitled to the funds.

Page 3
Procedure to File an Interpleader Suit under the CPC:
1. Filing the Suit: The stakeholder (e.g., the bank) files a plaint in the court, providing
details of the dispute, the parties involved, and the property or funds in question.
2. Defendants: The competing claimants (A and B) are named as defendants in the suit.
3. Deposit of Property: The stakeholder may be required to deposit the disputed property
or money in the court or provide a bond securing it.
4. Court’s Judgment: After hearing the claims and defenses of all parties, the court will
issue a decree declaring the rightful claimant.
5. Costs: The court will decide the issue of costs, directing either the claimants or the
stakeholder to bear the expenses of the litigation.

Conclusion:
Under the CPC, interpleader suits provide a mechanism for resolving disputes where a neutral
party holds disputed property or funds. The stakeholder can file an interpleader suit to request
the court's determination of which claimant is entitled to the property, ensuring that the
stakeholder is protected from liability and the rightful claimant is identified. The procedure is
governed under Order 35, which outlines the conditions, process, and judicial steps to be
followed in interpleader actions.

Page 4
SPECIMEN PLAINT IN AN INTERPLEADER SUIT

IN THE HIGH COURT OF JUSTICE AT MUMBAI


O.O.C.J.
SUIT NO.44 OF 2023

Bank of India, Mumbai,


having its registered office at Bank of
India Bldg., Fort, Mumbai - 400001
……Plaintiff
Versus
C, aged...., residing at ...
D, aged...., residing at ...
……. Defendant
Bank of India, Mumbai, the above-named plaintiff, states as follows:
Before the date of the claims here in after mentioned, G deposited with the plaintiff, Government
securities of the face value of Rs. 60,000 for safe custody.
1. The defendant C claims the same under an alleged deed of assignment executed by G.
2. The defendant D also claims the same under an alleged deed of assignment executed by
G.
3. The plaintiff is unaware of the defendants' respective rights.
4. The plaintiff has no claim upon the said securities other than for charges and is ready and
willing to deliver them to such persons as the court shall direct.
5. The cause of the action arose on the 10th of February, 2022, within the jurisdiction of
this court, when the said defendants claimed the same securities adversely to one another.
6. The value of the subject-matter of the suit for the purpose of jurisdiction and the court-
fees in Rs. 60,000.
7. The plaintiff claims:
a. An injunction is requested to prevent the defendants from pursuing legal action
against the plaintiff over the securities.

Page 5
b. They must interplead jointly about their rights to the securities.
c. That some person be authorised to receive the said securities pending such
litigation;
d. That upon delivering the same to such persons, the plaintiff be discharges from
all liability to either of the defendants in relation thereto; and
e. That the plaintiff may be awarded all costs of, and incidental to this suit.
(Sd.) Bank of India
Mumbai
By its Secretary, A.B.
Verification
I, A, B, the Secretary of Bank of India, Mumbai, declare on solemn affirmation that the contents
of paras 1 to 8 to the above plaint are true to may information and belief. Verified at Mumbai
this …. Day of April 2023.
(Sd.) Bank of India
Mumbai
By its Secretary, A.B.

Page 6

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