Order XXXV CPC: Interpleader Suits - Rules 1 to 6

Order XXXV of the Code of Civil Procedure, 1908 lays down the procedure for interpleader suits. These rules apply where a person holding money, property or another subject-matter faces competing claims and seeks a judicial determination of the rival claimants' rights without claiming an independent interest in the subject-matter, apart from charges or costs.

Legal context: Section 88 of the Code of Civil Procedure contains the substantive basis for an interpleader suit, while Order XXXV prescribes the procedure. This page covers all six rules of Order XXXV.

Rule 1 - Plaint in interpleader suit

In every interpleader suit, the plaint shall, in addition to the other statements required for a plaint, state:

(a)that the plaintiff claims no interest in the subject-matter in dispute other than for charges or costs;
(b)the claims made by the defendants severally; and
(c)that there is no collusion between the plaintiff and any of the defendants.

Rule 2 - Payment of thing claimed into Court

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 into Court before becoming entitled to any order in the suit.

Rule 3 - Procedure where defendant is suing plaintiff

Where a defendant in an interpleader suit is already suing the plaintiff in respect of the same subject-matter, the Court in which that earlier suit is pending shall, on being informed by the Court in which the interpleader suit has been instituted, stay the proceedings against the plaintiff.

The plaintiff's costs in the stayed suit may be provided for in that suit; to the extent they are not so provided for, they may be added to the costs incurred by him in the interpleader suit.

Rule 4 - Procedure at first hearing

(1) At the first hearing, the Court may:

(a)declare that the plaintiff is discharged from all liability to the defendants in respect of the thing claimed, award him his costs and dismiss him from the suit; or
(b)if justice or convenience so requires, retain all parties until final disposal of the suit.

(2) If admissions by the parties or other evidence enable the Court to do so, the Court may adjudicate title to the thing claimed.

(3) If the admissions do not enable the Court to adjudicate title, it may frame and try appropriate issues, make any claimant a plaintiff in place of or in addition to the original plaintiff, and proceed to try the suit in the ordinary manner.

Rule 5 - Agents and tenants may not institute interpleader suits

Nothing in Order XXXV enables an agent to sue his principal, or a tenant to sue his landlord, for the purpose of compelling them to interplead with persons other than persons making a claim through that principal or landlord.

Illustration (a): If A deposits a box of jewels with B as agent and C claims the jewels on the ground that A wrongfully obtained them from C, B cannot institute an interpleader suit against A and C.

Illustration (b): If A deposits jewels with B as agent and later makes them security for a debt to C, and A and C dispute whether that debt has been satisfied, both claiming the jewels from B, B may institute an interpleader suit against A and C.

Rule 6 - Charge for plaintiff's costs

Where the interpleader suit is properly instituted, the Court may provide for the original plaintiff's costs by giving him a charge on the thing claimed or in some other effective manner.

Official text

For the authoritative central text and amendment history, refer to the current India Code publication of the Code of Civil Procedure, 1908.

Official India Code - Code of Civil Procedure, 1908