Section 88 of The Code of Civil Procedure, 1908
Where interpleader-suit may be instituted.
Where two or more persons claim adversely to one another the same debts, 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.
Summary
- This section allows a person to ask the court to decide which of several competing people has the right to a specific debt or property.
- The person starting the suit must claim no personal interest in the property other than for costs or charges.
- The person holding the property must be ready to pay or deliver it to the person the court decides is the rightful owner.
- The stakeholder, the person holding the property, uses this suit to get a legal decision and protection from further liability.
- An interpleader suit cannot be filed if there is already another case pending where the rights of all parties can be decided.
Practical examples
FAQ
1. What is an interpleader suit under Section 88 of The Code of Civil Procedure, 1908?
Under Section 88 of The Code of Civil Procedure, 1908, an interpleader suit is a case where a person holding money or property claimed by others asks the court to decide who should receive it.
2. Can the person holding the property claim an interest in it under Section 88 of The Code of Civil Procedure, 1908?
No, under Section 88 of The Code of Civil Procedure, 1908, the person must claim no interest other than for legitimate charges or legal costs.
3. When is an interpleader suit barred under Section 88 of The Code of Civil Procedure, 1908?
An interpleader suit cannot be started under Section 88 of The Code of Civil Procedure, 1908, if there is another suit already pending that can properly decide everyone's rights.
4. What is the purpose of seeking indemnity in a suit under Section 88 of The Code of Civil Procedure, 1908?
Under Section 88 of The Code of Civil Procedure, 1908, the person holding the property seeks a decision to whom payment should be made and to obtain protection from being sued again for that same property.
Test yourself
1.To file a suit under Section 88 of The Code of Civil Procedure, 1908, what must the plaintiff be ready to do?
2.What interest can a plaintiff have in the property to qualify for a suit under Section 88 of The Code of Civil Procedure, 1908?
3.Under Section 88 of The Code of Civil Procedure, 1908, how many people must be claiming the same debt or property to justify the suit?
4.Is an interpleader suit allowed under Section 88 of The Code of Civil Procedure, 1908, if another suit is already pending for the same rights?