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Criminal Procedure Code QUESTION #9518
Question 1
A interpleader suit is filed by a stakeholder who holds money to which both B and C lay claims. B argues that only B and the stakeholder have a dispute, not B and C. Is B's argument a ground to reject the interpleader suit?
  • No; but only the High Court can entertain interpleader suits
  • Yes; an interpleader suit requires a direct dispute between B and C
  • No; Section 88 CPC requires only that the stakeholder holds money or property and two or more persons make adverse claims to it; the stakeholder's own interest is in having the Court determine the competing claims so as to be protected from multiple liabilities; a dispute between B and C inter se is not required✔️
  • Yes; interpleader suits are only for moveable property
Correct Answer Explanation
Section 88 CPC provides that where two or more persons claim adversely to one another the same debt, sum of money, or other property from a person who has no interest in the matter other than the charges, an interpleader suit may be filed. The essence is adverse claims against the stakeholder, not necessarily a direct dispute between the claimants inter se.