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This document discusses interpleader suits and summary procedure under the Civil Procedure Code. [1] An interpleader suit allows a plaintiff to call upon rival claimants of a debt or property before the court to get their claims decided. [2] Certain conditions must be met before filing an interpleader suit, including two persons claiming the same debt/property adversely. [3] Summary procedure under Order 37 allows for expedited recovery of debts and liquidated sums through restrictions on the defendant's right to defend.

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Radhikka Ahuja
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40 views8 pages

In Terp Leader

This document discusses interpleader suits and summary procedure under the Civil Procedure Code. [1] An interpleader suit allows a plaintiff to call upon rival claimants of a debt or property before the court to get their claims decided. [2] Certain conditions must be met before filing an interpleader suit, including two persons claiming the same debt/property adversely. [3] Summary procedure under Order 37 allows for expedited recovery of debts and liquidated sums through restrictions on the defendant's right to defend.

Uploaded by

Radhikka Ahuja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Civil Procedure Code

Interpleader Suits (Sec 88 Order


35)
• “To interplead” connotes “to litigate with each other to settle a point
concerning a third party.”
• The primary object of filing an interpleader suit to get claims of rival
defendants adjudicated. It is the process wherein the plaintiff calls upon
the rival claimants to appear before the court and get their respective
claims decided.
• A suit does not become interpleader suit merely because the plaintiff
requires the defendants to interplead with each other as regards one of
the prayers in the plaint. While deciding whether the suit is an
interpleader one, the court must have regard to all the prayers in the
plaint.
Conditions (Section 88):

Before institution of interpleader suit, following conditions must be


satisfied:
1) There must be some debt, sum of money or other property movable or
immovable in dispute;
2) Two persons must be claiming it adversely to one another;
3) The person from whom such debt, money or property is claimed must
not be claiming interest therein other than the charges and costs and he
must be ready and willingly to pay or deliver it to the rightful claimant; and
4) There must be no suit pending wherein the rights of rival claimants can
be properly adjudicated.
Procedure (Order 35, Rule 1):
• In every interpleader suit, the plaint must also state:-
1) that the plaintiff claims no interest in the subject matter in dispute,
other than for charges or costs;
2) that the claims made by the defendants severally;
3) that there is no collusion between the plaintiff and any of the
defendants.
Summary Procedure (Order 37)
• Order 37 provides summary procedure in suits based on negotiable
instruments or where the plaintiff seeks to recover debt or liquated
damages.
• In a summary suit , the defendant is not entitled to a right of defense
like in an ordinary suit.
Object –
• The underlying object behind it is to prevent unreasonable
obstruction by the defendant who has no defense and to assist
expeditious disposal of cases.
• The provisions of Order 37 apply to (a) High Courts, (b) City Civil Courts, (c) Courts
of small causes, and (d) other courts (the High Court may restrict the operation of
this Code to such suits as it deems proper) to:
a) Suits upon bills of exchange, hundies and promissory notes, and
b) Suits in which the plaintiff seeks only to recover a debt or liquidated demand in
money payable by the defendant, with or without interest, arising:-
a.) on a written contract, or
b.) on an enactment, where the sum sought to be recovered is a fixed sum of
money or in the nature of a debt other than a penalty, or
c.) on a guarantee, where the claim against the principal is in respect of a debt or
liquidated demand only.
• The plaint shall contain a specific averment that the suit is filed under Order
37; and that a relief which falls with the ambit of this rule has been claimed.
The summons of the suit has to be issued to the defendant. The defendant is
not entitled to defend a summary suit unless he enters an appearance. In
default of this, the plaintiff will be entitled to a decree which will be executed
forthwith. (Rule 2)
• The defendant must appear within 10 days of service of summons.
• Rule 3 (5) lays down that the defendant must apply for “leave to defend”
within 10 days from the date of service of summons for judgment upon him.
Such leave will be granted only if the affidavit filed by the defendant disclose
such facts as may be deemed sufficient to entitle him to defend. Such leave to
defend may be granted conditional or unconditional.
• Principle for granting leave to defend:- There can be no hard and fast rule as to in
what cases leave to defend can be granted. This all depend on facts and
circumstances and the discretion must be exercised judicially and in consonance
with the principles of natural justice. However the court as a general rule grant
leave when a prima facie defense is made out or there is a triable issue.
In Kiranmoyee Desai v. Chatterjee , Calcutta HC laid down following rules –
• If the defendant raises a triable issue , indicating he has a bona fide defense the
leave to defend should be granted
• If the defendant’s defense is sham or illusory leave to defend should be refused
• If the defendant satisfies the court he has good defense to claim on merits, the
plaintiff is not entitles to leave to sign judgement and the defendant is entitled to
unconditional leave to defend,

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