DIFFERENT FORMS OF SUITS

INTERPLEADER SUIT (Section 88, Order 35 Code of Civil Procedure)

Section 88 and order XXXV of the Civil Procedure Code 1908 deals with the
provision of interpleader suits. Generally, ordinary suits that are filed before the
Hon’ble court are between two parties, the plaintiff and the defendant. But the
interpleader suit is unlike the ordinary suits between the two defendants who fight for
a claim over a particular good, debt, or chattel. The plaintiff in such suits usually do
not have any real interest in the subject matter of the suit and institute the suit to only
make sure that the property in dispute is put in the custody of the actual owner.

Meaning and definition of interpleader suit

Dictionary meaning of Interplead is to go to trial with each other in order to determine

a right on which the action of a third party depends. It is a civil procedure that allows
a plaintiff or a defendant to initiate a lawsuit in order to compel two or more other
parties to litigate a dispute

As per the Halsbury’s laws of England it has been stated;

“Where a person is under liability in respect of a debt or in respect of any money,
goods or chattels and he is or expects to be sued for or in respect of the debt or
money or those goods or chattels, by two or more persons making adverse claims
thereto, he may apply to the court for relief by way of interpleader”.

Where interpleader suit may be reinstituted (Section 88 CPC)

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.

Object of interpleader suit -

The main object of filing an interpleader suit is to get claims of rival dependents
adjudicated.

Conditions: section 88:- For filing an interpleader suit there must be satisfying the
following conditions:-
a) There must be debt, sum of money or other movable or immovable property in
dispute
b) There must be two or more persons claiming it adversely to one another
c) The person from whom such debt, money or movable or immovable property is
claimed must not be claiming interest therein other than two charges and cost and
he must be ready and willing to pay or deliver it to the rightful claimant.
d) There must be no suit pending wherein the rights of rival claimants and can be
properly adjudged.

Who cannot file interpleader suit - (Order XXXL Rule 5)

An agent cannot sue his principal or a tenant or his landlord for the purpose of
compelling them to interplead with persons other than persons claiming through such
principles or landlords.

In the case of Mangal Bhikaji Nagpase v. State of Maharashtra in1997 the

BombayHigh Court held that it is mandatory for the plaintiff to affirm that he has no
interest in the subject matter of the dispute other than costs and charges.

Conclusion:- To conclude we can say that, it is clear that an interpleader suit is

actually between the defendants.The plaintiff cannot claim any interest in the subject
matter of such suit except the charges and the costs as admissible to him under the
law.

SUIT FOR DISSOLUTION OF PARTNERSHIP

Introduction: Dissolution of partnership firm is a process in which relationship

between partners of firm is dissolved or terminated. If a relationship between all the
partners of firm is dissolved then it is known as dissolution of firm. In case of
dissolution of partnership of firm, the firm ceases to exist. This process includes the
discarding and disposing of all the assets of firm or and settlements of accounts,
assets, and liabilities.

Dissolution of Partnership Firm

As we know that after the dissolution of partnership firm the existing relationship
between the partner’s changes. But, the firm continues its activities. The dissolution
of partnership takes place in any of the following ways:

● Change in the existing profit sharing ratio.

● Admission of a new partner
● The retirement of an existing partner
● Death of an existing partner
● Insolvency of a partner as he becomes incompetent to contract. Thus, he can
no longer be a partner in the firm.
 ● On completion of a specific venture in case, the partnership was formed
specifically for that particular venture.
● On expiry of the period for which the partnership was formed.

Section 39 of the Indian Partnership Act 1932 states that the dissolution of
partnership firm among all the partners of the partnership firm is the Dissolution of
the Partnership Firm. The dissolution of partnership firm ceases the existence of the
organization.

After this, the partnership firm cannot enter into any transaction with anybody. It can
only sell the assets to realize the amount, pay the liabilities of the firm and discharge
the claims of the partners.

However, the dissolution of a firm may be without or with the intervention of the
court. It is noteworthy here that the dissolution of partnership may not necessarily
result in the dissolution of the firm.

But, dissolution of partnership firm always results in the dissolution of the

partnership.

Following are the ways in which dissolution of a partnership firm takes place:

1. Dissolution by Agreement
A firm may be dissolved if all the partners agree to the dissolution. Also, if there
exists a contract between the partners regarding the dissolution, the dissolution may
take place in accordance with it.

2. Compulsory Dissolution
In the following cases the dissolution of a firm takes place compulsorily:

● Insolvency of all the partners or all but one partner as this makes them
incompetent to enter into a contract.
● When the business of the firm becomes illegal due to some reason.
● When due to some event it becomes unlawful for the partnership firm to carry
its business. For example, a partnership firm has a partner who is of another
country and India declares war against that country, then he becomes an
enemy. Thus, the business becomes unlawful.

3. When certain contingencies happen

The dissolution of the firm takes place subject to a contract among the partners, if:

● The firm is formed for a fixed term, on the expiry of that term.
 ● The firm is formed to carry out specific venture, on the completion of that
venture.
● A partner dies.
● A partner becomes insolvent.

4. Dissolution by Notice
When the partnership is at will, the dissolution of a firm may take place if any one of
the partners gives a notice in writing to the other partners stating his intention to
dissolve the firm.

5. Dissolution by Court
When a partner files a suit in the court, the court may order the dissolution of the firm
on the basis of the following grounds:

● In the case where a partner becomes insane

● In the case where a partner becomes permanently incapable of performing his
duties.
● When a partner becomes guilty of misconduct and it affects the firm’s
business adversely.
● When a partner continuously commits a breach of the partnership agreement.
● In a case where a partner transfers the whole of his interest in the partnership
firm to a third party.
● In a case where the business cannot be carried on except at a loss
● When the court regards the dissolution of the firm to be just and equitable on
any ground.