Interpleader (Section 88)

Section 88: Where interpleader suit may be instituted.—

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.


IMPORTANT CASE LAWS

1. Scope of Interpleader Suit

Neeraj Sharma vs. District Sangrur Khadi Gram Udyog Karya Karta Sangh, 2006 SCC OnLine P&H 186, (2006) 2 RCR (Civil) 249 : “……..a tenant cannot sue his landlord for compelling him to interplead with any person other than persons making claim through such landlord. If the other person is claiming the property through the previous landlord and then asking for the rent from the tenant, then to settle such different claims by two or more persons, the tenant can file interpleader suit, but if the other person is claiming the right and interest in the property independently without any reference to the previous landlord and claiming the rent from the tenant, then the interpleader suit filed by the tenant is not maintainable.”


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