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CPC, 1908 — Section 88: Where interpleader-suit may be instituted

CPC, 1908 · Part IV · Suits in Particular Cases · Interpleader

Section 88 — Where interpleader-suit may be instituted

You hold money or property that two or more people claim against each other, while you yourself want nothing from it (beyond your charges or costs). Pay the wrong one and you pay twice. Section 88 lets you sue all the claimants together in an interpleader suit, so the court decides who is entitled — and you walk away indemnified.

§ 88

How to read Section 88

The stakeholder’s fix

You hold a debt, money or property that rival claimants demand from you. You have no interest of your own (bar charges or costs) and are ready to hand it over — but to whom?

The remedy

Sue all the claimants at once in interpleader. The court decides who is entitled, and you obtain indemnity — protection against paying the wrong person.

The bar (proviso)

If a suit is already pending in which all those rights can properly be decided, you cannot bring a separate interpleader suit.

The bare Act

Section 88 · verbatim

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.

Section 88 stands as in the original 1908 Code — unamended. The procedure for interpleader suits is in Order XXXV.

Key terms decoded

Interpleader

A suit by a stakeholder who holds property claimed by rivals, asking the court to decide between the claimants — he “interpleads” them so they fight it out, not with him but with each other.

Claim adversely to one another

The claimants’ demands conflict — each says the same thing is his, to the exclusion of the others.

The same debt, money or property

One and the same thing — a debt, a sum of money, or any property (movable or immovable) — is the subject of the rival claims.

Claims no interest other than charges or costs

The stakeholder must be disinterested — he wants nothing from the property itself, except perhaps his charges or costs of holding it.

Ready to pay or deliver

He must be willing to hand it over to whoever is held entitled — he is not withholding it for himself.

Indemnity for himself

The protection the suit secures: once he pays as the court directs, he is safe from any later claim by the others.

Proviso — a pending suit

If another suit is already on foot in which all these rights can properly be decided, interpleader is barred — no need for a parallel suit.

Order XXXV

The rules that work § 88 — how an interpleader suit is framed, the plaint, and the court’s power to discharge the stakeholder.

The picture — the stakeholder steps aside

Claimant A claims it is his Claimant B claims it is his STAKEHOLDER holds the money / property; no interest of his own; ready to pay interpleads all Interpleader suit vs ALL claimants → court decides who is entitled → stakeholder is INDEMNIFIED Proviso — if a suit is already pending in which all these rights can properly be decided, no interpleader suit may be instituted.

The stakeholder does not take sides — he hands the dispute to the court and steps out, protected by an indemnity. Interpleader is unavailable only where a pending suit can already resolve everyone’s rights.

Section 88, part by part

The conflict
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,
Two or more claimants make conflicting claims to the same debt, money or property — movable or immovable — held by one other person.
The stakeholder
who claims no interest therein other than for charges or costs and who is ready to pay or deliver it to the rightful claimant,
That holder must be a disinterested stakeholder — claiming nothing for himself (bar charges or costs) and ready to hand it over to whoever is entitled.
The remedy
such other person may institute a suit of interpleader against all the claimants
He may then bring an interpleader suit — against all the claimants together, not one at a time.
The purpose
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:
Two aims: a decision on who is entitled to be paid or given the thing, and indemnity for the stakeholder once he pays as directed.
The bar
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.
No interpleader where a suit is already pending in which all the parties’ rights can properly be decided — that forum will settle it.

Connected provisions

Section 88 is the Interpleader node of Part IV (§§ 79–93). It states when an interpleader suit lies; the procedure — the plaint, the stakeholder’s discharge, costs — is in Order XXXV. It follows the foreign-sovereigns group (§§ 83–87B) and precedes § 89 (settlement of disputes outside the Court).

Test yourself
1 You hold money two people claim against each other and you don’t care who gets it. What can you do? — file an interpleader suit against both, so the court decides who is entitled and you get indemnity [§ 88].
2 Must the holder have no interest in the thing? — Essentially yes — he must claim no interest other than charges or costs (a disinterested stakeholder).
3 When is interpleader barred? — where a suit is already pending in which all the parties’ rights can properly be decided (proviso).
Part IV · Suits in Particular Cases · Section 88 — Where interpleader-suit may be instituted.