Professional Documents
Culture Documents
● Intro
○ To interplead means to litigate with each other to settle a point concerning a
third party
○ Interpleader suit is a suit in which the real dispute is not between a plaintiff
and a defendant but between defendants who interplead with each other,
unlike in an ordinary suit.
○ Primary object is 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.
● Section 88- Conditions
○ The following conditions must be satisfied before a interpleader suit can be
instituted
i. There must be some debt, sum of money, or other property movable
or immovable in dispute
ii. Two or more persons must be claiming it adversely to one another
iii. The person from whom such debt, money or property is claimed
must not be claiming interest therein other than the charges and the
costs and he must be ready and willing to pay or deliver it to the
rightful claimant
iv. There must be no suit pending wherein the rights of rival claimants
can be properly adjudicated
○ A person who has no interest in any debt, sum of money or other property,
movable or immovable, except the charges or costs and is ready to pay or
deliver the property to the rightful claimant can file an interpleader suit
○ Test- the court must have regard to all the prayers in the plaint. A suit does
not become an interpleader suit merely because the plaintiff requires the
defendant to nterplead with each other as regards to one of the prayers in
the plaint.
● Order 35- Procedure
○ R1- In every interpleader suit, in addition to other statements, the plaint
must also state
i. That the plaintiff claims no interest in the subject matter in dispute
other than the charges and costs
ii. The claims have been made by the defendant severally and
iii. There is no collusion between plaintiff and any of the defendants
○ R2- The court ma order the plaintiff to deposit the ammount or place the
property in custody of the court and (mentioned in r6) providies court
incurred by him by giving him a charge on the thing claimed
○ R4-
i. At the first hearing, the court may declare that the plaintiff is
discharged from all liabilities, award him costs and dismiss him from
the suit.
ii. Where it is not possible, the court may direct that an issue or issues
bettween the parties to be framed and tried, one of the claimants to
be made the plaintiff in lieu of or in addition to the original plaintiff
and the suit shall proceed in ordinary manner.
○ Rule 4- an agent can’t sue his principle, or tenant or his landlord, for the
purpose of compelling them to interplead with persons other than person
claiming through such principals or landlords.
● Intro
○ Order 37 provides summary procedure in suits based on negotiable
instruments or where the plaintiff seeks to recover debt or liquidated
amount.
○ The essence of summary suits is that the defendant is not, as in an ordinary
suit, entitled as of right to defend the suit.
○ He must apply for leave to defend within stipulated period of 10 days
○ The object is to ensure an expeditious hearing and disposal of suit and to
prevent unreasonable obstruction by the defendant who has no defence and
to assist the expeditious disposal of cases
● The discretionary power conferred upon the cour under order 37 should be
exercised judicially, judiciously and on well settled principles of natural justice.
Wherever the defence raises a trible issue, leave should be grantted
unconditionally. If it is not done, leave, may become illusory- Milky Ram India
Pvt Ltd vs Cham Lal Brothers
● Test-
○ is to see whether the defense raises a real, honest and bona fide dispute and
raises a triable issue or not.
○ If the court is satisfied that the defense has raised a triable issue or a fair
dispute has arised, the leave to defend will not be refused.
○ It is only in cases where the defense is patently dishonest or so
unreasonable that it could not reasonably be expected to succeed that the
exercise of discretion to grant unconditional leave can be refused.
○ Uma Shankar Kamal Narayan vs M.D Overseas Ltd SC- hled court will
allow leave to defend if the defendant’s cause is such that if he proves his
fact, he wins the case. If the defendant’s case is moonshine or illusionary
then the leave to defend will not be allowed and court will pass judgement
● Procedure
○ Rule 2- 3
i. Suit is filed by the plaintiff and summons are issued to defendant for
first appearnace
ii. After the summons of the suit has been issued to defendant, the
defendant must appear and serve notice tp plaintiff about his
appearance
iii. 2nd summons are issued for judgement
iv. The defendant may appear and file leave to defend the suit and
grounds therein
v. The court will hear the matter to decided if the defendant has
possible grounds to defend and then court will grant leave to defend
vi. If the court grants leave to defende, then it will continue as normal
suit.
vii. If not then court will pass judgement
viii. If the defendant does not appear after 1st/2nd summons, then the
court will pass judgement forthwith.
● No appeal lies against an order granting or refusing leave to defend- r3
● A decree passed in a summary suit is appealable
● Principles- Kiranmoyee Dassi v J. Chatterjee Cal HC
● Intro-
○ A friend suit (special case) is a suit where the parties do not approach a
court by presentation of a plaint as is done in ordinary civil litigation.
○ They are however, interested in the decision of any question of fact or of
law.
○ For the said purpose, they enter into an agreement in writing stating such
question in form of a case for the purpose of obtaining the opinion of the
court. The court may decide the question if it is satisfied that such question
is fit to be decided.
○ Object is that where parties agree to state a case for pinion of the court, the
court would try and determine such question by registering it as a suit.
○ Upon the judgement so pronounced, a decree will follow, such decree could
be a compromise decree.
● Conditions
○ The agreement is duly executed by the parties
○ The parties have a bona fide interest in the question sated
○ The case is fit to be decided
● Procedure: Order 32 and 36
○ Rule 1 and 2
i. Taks about form and contents of an agreement
ii. Such agreement duly entered into between the parties should be filed
in the court having jurisdiction to entertain suit
iii. It shall be rehistered as a suit and shall be heard and disposed of by a
judgement which will be followed by a decree
iv. Thus virtually the decree is a conset decree
○ No appeal
○ The procedure provided by section 90 and 36 are rarely invoked because a
litigant does not get apparent benefit under it.
After a hearing is complete, the court will pronounce a judgment. R.1 -5 of O.XX deals with
judgment. A judgment is said to be the final decision of the court on the said matter before the
court in the form of suit towards parties and to the world at large by formal pronouncement in
open court.
S.2(9) - judgment means the statement given by the judge on the grounds of a decree or order.
● O.XX, R.1 - pronouncement of judgment - After hearing is complete the court shall
pronounce the judgment in open court, either at once or on some future day, after
giving due notice to the parties or their pleaders.
○ If not pronounced immediately, the court should make all efforts to deliver
judgment within 30 days, and in extraordinary circumstances, within 60 days.
Pronouncement of judgment is essential for validity of judgment and judgment should be based
on the grounds and points in the pleadings and not outside the case put forward by the parties in
their pleadings. A statement of fact recorded in the judgment is conclusive og facts stated and no
one can contest these facts through an affidavit. The judge need not read the entire judgment and
can read only the final order.
Swaran Lata v. State of UP- Judgement must be on the grounds and points in the pleadings and
not outside the caseu put forward by the parties in their pleadings. On the one hand the court
should recording findings on all the points raised by the parties and on the other, it should not
decide any question which does not arise out of the pleadings of the pirates or is unnecessary.
A judgment must be a self-contained document fom which it should appear as to what were the
facts of the case and what was the controversy which was tried to be settled by the court and in
what manner.
R.6. Contents of a decree - The decree shall follow the judgment and agree with in and bear;
1. The number of suit
2. The names and description of parties and their registered address
3. The particulars of the claim
4. The relief granted
5. The amount of costs incurred in the suit and by whom or out of what property and in
what proportion they are to be paid
6. The date on which judgment is pronounced
7. The signature of the judge
R.9 - In suit of recovery for immovable property, the decree shall contain a description of such
property, sufficient to identify it, survey numbers, boundaries, maps
R.10 - In decree for delivery of movable property. It must state amount of money to be paid as
an alternative if delivery cannot be made
R.11 - In a decree for payment of money, the court may order that the decretal amount shall be
postponed or shall be made by instalments with or without interest
R.12 - In suit for possession of immovable property , the court may pass a decree for
● (1) possession of property
● (2)(a) for past rent or mesne profit
● (b) or direct an inquiry as to the rent and mesne profit
● (c) direct inquiry as to future rent and mesne profit
● (3) final decree in accordance with result of such inquiry
R.12-A - A decree for specific performance of contract for sale or lease of immovable property
shall specify the period within which the purchase money or sum is to be paid by the purchaser
or lessee
R.13 - In suit for account of any property and for its due administration under the decree of the
court, before passing a final decree, the court should pass a preliminary decree, ordering
accounts to be taken and inquiries to be made. After this only final decree can be passed.
R.14 - In a decree for a pre-emption suit , where purchase money has not been paid to the court,
the decree shall specify date for payment and direct that on such payment, defendant will deliver
the property to the plaintiff
● Right of pre-emption - It is the right of an owner of immovable property to acquire by
purchase another immovable property which has been sold to another person. In other
words, under this right, the owner of an immovable property is entitled to repurchase an
adjacent property which has been sold to someone else.
When court has adjudicated upon rival claims of pre-emption, the decree shall direct
● If claims decreed are equal in decree, then the claim of each pre-emptor will take effect
proportionately
● If claims are different in decree, the claim of the inferior pre-emptor shall not take
effect unless and until superior pre-emptor fails to make payment
R.15 - In suit for dissolution of partnership or taking of partnership accounts, the court before
passing a final decree, may pass a preliminary decree declaring proportionate share of parties,
fixing the day on which partnership shall stand dissolved and directing accounts to be taken
R.16 - In suit of accounts between principal and agent, the court before passing a final decree,
shall direct prelim dec for taking in accounts
R.17- The court can give special directions regarding mode of taking accounts
R.18 - In a decree passed in a suit for partition of property or for the separate possession of a
share therein;
● (1) if estate is assessed as to payment of revenue to the govt, the decree shall declare
rights of several parties interested in the property but shall declare partition or separation
to be made by the collector (S.54)
● (2) in other cases of immovable property, if partition cannot be conveniently made
without inquiry, the court may pass a prelim decree declaring the rights of the parties
in the property and thereafter final decree can be passed.
R.19- A decree where the defendant has been allowed a set-off or counterclaim, against the
claim of the plaintiff, it shall state what amount is due to the plaintiff and what amount is due to
the defendant.
Interest - S. 34
It is a charge that is paid to borrow for use of money. It is a compensation allowed by law to the
person who has been prevented to use the amount to which he was entitled. When decree is for
payment of money, the court may award interest such rate as it deems reasonable on the
‘principal sum adjudged’.
https://www.scconline.com/blog/post/2021/03/14/tale-of-two-judgments/#:~:text=We%20are
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Division of interest
S.34 does not deal with interest prior to filing of suit as it is a purely substantive matter.
B.N. Rly v. Rulia Singh, PC 1938
“The crucial question, however, is whether the Court has authority to allow interest for the
period prior to the institution of the suit; and the solution of this question de0 pends, not upon the
Civil Procedure Code, but upon substantive law. Now, interest for the period prior to the date of
the suit may be awarded, if there is an agreement for the payment of interest at a fixed rate, or it
is payable by the usage of trade having the force of law, or under the provision of any
substantive law entitling the plaintiff to recover interest, as for instance, under section 80,
Negotiable Instruments Act, 1881, the Court may award interest at the rate of 6 per cent. per
annum, when no rate of interest is specified in the promissory note or bill of exchange."
(ii) Interest pendente lite, i.e, from the date of the suit to the date of the decree
The award of interest from the date of decree is at the discretion of the court. The discretion
should be exercised on sound judicial principles, ideally courts decide based on contractual rate,
unless it is unfair to do so.
When court grants interest at agreed rate between parties in may not record reason. If it
awards rate lesser then agreed, reason to be recorded. In case of commercial transactions,
that deal with industry, trade or business, grant of interest at contractual rate will be the rule.
Costs - S.35
(For other costs under O.20-A and S.35-A, 35-B refer to pg. 414 of Takhwani)