Code of Civil Procedure, 1908 | Order XXXV - Interpleader
Order XXXV Rule 2 CPC - Payment of Thing Claimed into Court
Order 35 Rule 2 of the Code of Civil Procedure, 1908 enables a court to require a plaintiff in an interpleader suit to deposit disputed money or place disputed property in the court's custody before obtaining an order in the suit.
Text of Order XXXV Rule 2 CPC
2. Payment of thing claimed into Court. Where the thing claimed is capable of being paid into Court or placed in the custody of the Court, the plaintiff may be required to so pay or place it before he can be entitled to any order in the suit.
Source: Code of Civil Procedure, 1908 - India Code (official text).
Meaning and purpose of Rule 2
An interpleader suit arises when two or more persons make competing claims against a person holding money or property, and that holder seeks a judicial determination of who is entitled to it. The holder ordinarily does not claim a beneficial interest in the subject matter, except charges or costs.
Rule 2 safeguards the disputed subject matter while the court considers the rival claims. If the property can be deposited or placed in judicial custody, the court has discretion to require the plaintiff to do so before granting an order. The word may makes this a discretionary power, not an automatic deposit requirement in every case.
When the court may direct a deposit
The rule applies where the subject matter is capable of being paid into court, such as a sum of money, or placed in the custody of the court, such as movable property. The court assesses the circumstances and the practicability of securing the subject matter. Rule 2 does not itself determine which competing claimant owns the property.
Relationship with Section 88 and other rules
Section 88 CPC provides for an interpleader suit where two or more persons claim adversely to one another the same debt, sum of money, or other property from a person who claims no interest other than charges or costs and is ready to pay or deliver it to the rightful claimant. The suit seeks a decision on the person entitled and an indemnity for the stakeholder, subject to the section's conditions.
Order XXXV Rule 1 requires the plaint to state the plaintiff's limited interest, the respective defendants' claims, and the absence of collusion. Rule 3 addresses another suit by a claimant against the stakeholder. Rule 4 deals with the first hearing, possible discharge of the plaintiff, and adjudication of competing claims. Rule 5 limits interpleader suits by agents and tenants against their principals and landlords, subject to its terms. Rule 6 permits protection of a properly suing plaintiff's costs, including a charge on the subject matter.
Illustrative example
A stakeholder holds a sum of money claimed by two different persons. The stakeholder files an interpleader suit without asserting ownership of the sum. If the money can be deposited in court, the court may direct that deposit before making an order in the suit. The competing claims can then be considered under the applicable procedure.
Official legal reference
Read the Code of Civil Procedure, 1908 on India Code and the official consolidated PDF. Applicable state amendments, local court rules and current judicial directions should also be checked for a particular proceeding.
This article provides general legal information and does not replace advice on the facts of an individual case.