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Qn: It is good luck and quite legal to convert the ones personal use and property that fall into one’s hands as long as the parties purporting to be the true owners of the property are quarrelling over the ownership of the said property. The best one can tell the two quarrelling parties is that all liars and the law has no remedy for them.
Do you agree with the above statement as the true exposition of the law?
OUTLINE
- INTRODUCTION
1.1 Statement in respect of the question
1.2 What is interpleader suit
1.3 Law governing interpleader suit
2.0 MAIN BODY
2.1 Statement in respect of the quotation from the question.
2.2 Reasons for disagreement with the quotation from the question.
2.3 Who may not institute Interpleader suit
2.4 Conditions to be satisfied before an Interpleader suit can be instituted
2.5 How Interpleader suit is framed and its proceedings.
2.6 Who may not institute interpleader suit
2.7 Rationale for Interpleader suit
3.0 CONCLUSION
REFERENCE
1.0 INTRODUCTION
Where two more people have an adverse claim all to a particular identifiable sum of money, property movable or immovable from another person who claims no interest therein other than charges or costs such person may institute an interpleader suit against the claimants so as to invite the court of law to determine the true owner of the said sum or property and of obtaining indemnity for himself. That being the case the question asked falls under Interpleader suit.
To interplead means to litigate with each other to settle a point concerning a third party.[1] In Halsbury’s Laws of England it has been stated that where a person is under liability in respect of any money, goods or chattels and he is, or expects to be, sued for or in respect of that 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[2].
An interpleader suit is a suit in which the real dispute is not between a plaintiff and a defendant but between the defendants who interplead against each other, unlike in an ordinary suit In an interpleader suit, the plaintiff is not really interested in the subject matter of the suit.[3] Section 63 of the Civil Procedure Code enacts that two or more persons claiming adversely to one another same debt, sum of money or property movable or immovable, from a person who does not claim any interest therein and he is ready to pay or deliver the same to the rightful claimant, may file an interpleader suit.
Thus, for example A is in possession of car but he claims no interest in the car himself, and is willing to hand it over to the rightful owner. The car claimed by X and Y.A may file an interpleader suit against X and Y and the court will decide as to who is the rightful owner of the car as between X and Y.
The law governing interpleader suit is the law governing procedure in civil litigation i.e Civil Procedure Code, in our jurisdiction is Section 63 read together with Order XXXIII of the Civil Procedure Code.[4]
2.0 MAIN BODY
2.1 Statement in respect of the quotation from the question.
With the true exposition of law, we do not agree with the statement that it is good luck and quite legal to convert to one’s personal use any property that falls into ones hands as long as the parties purporting to be the true owners of the property are quarrelling over the ownership of the said property. The best one can tell the two quarrelling parties is that all liars and the law have no remedy for them.
2.2 Reasons for disagreement with the quotation from the question.
We do not agree with this statement on the sense that where individuals’ legal rights are in dispute such as right to property always court is invited to determine such rights and as long as they are legal rights law must have remedy toward such individuals. Also, the law governing civil litigation in Tanzania provides for the institution of a suit to deal such cases whenever arose.
S.63 of Civil Procedure Code provides
’’Where two or more persons claim adversely to one or another the same debt, 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 the parties can properly be decided, no such suit of interpleader shall be instituted’’
2.3 Who may institute Interpleader suit
He who institutes interpleader suit is the one in possession of the property. Interpleader suit is not suit of ordinary nature because a person who institutes it has no cause of action, that no legal right violated against him, he has not claimed a remedy against anybody. He claims no interest in the property he posses, except charges and interest of handling such property which does not belong to him. He therefore wants the court to determine who is rightful owner of such property. No question can arise between him and the claimants over the ownership. Actually, he is ready to deliver such property to the rightful owner.
2.4 Conditions to be satisfied before an Interpleader suit can be instituted
There are conditions, which must be satisfied before an interpleader suit can be instituted.
1.There must be some debt, sum of money or other property movable or immovable in dispute;
2.Two or more persons must be claiming it adversely to one another;
3.The person from whom the debt, money or property is claimed must not be claiming interest therein other than the charges and costs and he must be ready and willing to pay or deliver it to the rightful claimant; and
4.There must be no suit pending wherein the rights of rival claimants can properly adjudicated.[5]
5.There must be no collusion between the plaintiff and any of the defendants.
When it is said that there must be no collusion between the plaintiff and any of the defendants it means in such suit the plaintiff must be in an impartial position. If he has in some way, identified himself with one of the parties in the sense that it will make a difference to him one of them succeds, an interpleader suit will not lie. This is the provision of Order XXXIII,Rule 1 (c).
As such party who has taken an indemnity from one of the claimants is not entitled to file an interpleader suit as held in the case of Jugnath vTulka.[6]
In this case, A had a sum of Rs.10, 000 which sum was claimed from him both by X and Y, advesly to each other. A thus instituted an interpleader suit against X and .It was found at the hearing that A had entered into an agreement with X before the suit was instituted, that if X succeeded in the suit, he would accept from A, R.s 75,00 only in full of satisfaction of his claim. Here A had an interest in the subject matter of the suit by virtue of his agreement with X.He was therefore not entitled to institute an interpleader suit and accordingly his suit was dismissed.
These conditions are also reiterated in the case of Sargent vGuatama[7] while a(Revised) Rules of Kenya, which is parimateria to our s.63, and O.XXXIII of our Civil Procedure Code. In this case it was held that in an intrpleader suit there are essentials as set out under s.58 of theCivil Procedure Act are that where there are two or more persons claiming the same debt or sum of money from another person who claims no interest therein save for any charges or costs. The proceedings may be instituted and the only limitation to the court’s power to grant the application are those set out in r.2 of O.33 of the Civil Procedure (Revised) Rules 1948 of Kenya to the effect that the applicant must satisfy the court by affidavit or otherwise that
- the applicant claims no interest in the subject matter in dispute other than charges or costs
- there is no collusion between the plaintiff and any of the claimants
- the applicant is willing to do or transfer the subject matter into court or dispose of it as the court may direct
2.5 How Interpleader suit is framed and its proceedings
O.XXXIII of our Civil Procedure Code lays down the procedure for interpleader suits. Under r. 1 of this Order it provides among other things plaint shall contain the following;
In every suit the plaint shall in addition to other statements necessary for plaints state
- that the plaintiff claims no interest in the subject matter in dispute other than for charges or costs;
- the claims made by the defendants severally; and
- that there is no collusion between the plaintiff and any of the defendants.
After institution of the suit the court may order the plaintiff to deposit the amount or place of property in the custody of the court before he can be entitled to any order in the suit, as provided under r 2 of O.XXXIII.
At the first hearing court declare that the plaintiff is discharged from all liability, award him costs and dismiss him from the suit, but if court thinks that justice so require it will retain all the parties until the final disposal of the suit; r 4 (1) (a),(b) of the same Order.
On the basis of the evidence available the court may adjudicate the title of thing claimed. Where it is not possible, the court may direct that an issue or issues between the parties be framed and tried, one of the claimants be made a plaintiff and the suit shall proceed in an ordinary manner; r 4(2), (3) (a) (b).
2.6 Who may not institute an interpleader suit.
There is certain category of persons who may not institute interpleader suit. Normally, agents or tenants shall not be permitted to file an interpleader suit against their principles and landlords except in circumstances where the disputes among the principles and the landlords are such which the agent or tenant cannot solve. If there be any honest doubt to which of the persons claiming to be landlords in cases of succession on the death of the original landlord, the tenant can file an interpleader suit. Simirlarly, where the agents entertains a genuine doubt as to which of the successors of the deceased principal is entitled to receive the amounts, the agent can file an interpleader suit as provided under O.XXXIII, r 5 of CPC.[8]
2.7 Rationale for Interpleader suit.
The rationale behind filing an interpleader suit is to get claims of the rival defendants adjudicated. It is the process wherein the plaintiff calls upon the rival claimants to appear before the court and get their claims decided. The decision of the court in an interpleader suit affords an indemnity to the plaintiff on the payment of money or delivery of property to the person whose claim has been upheld by the court.[9]
3.0 CONCLUSION
With the true exposition of law, we disagree with the statement that it is good luck and quite legal to convert to one’s personal use any property that falls into one’s hands as long as the parties purporting to be the true owners of the property are quarrelling over the ownership of the said property. The best one can tell the two quarrelling parties is that al liars and the law have no remedy for the them. We do not agree with this statement on the sense that where individuals’ legal rights are in dispute such as right to property movable or immovable always court is invited to determine such rights and as long as they are legal rights law must have remedy toward such individuals. That being the case the law governing civil litigation in Tanzania; The Civil Procedure Code under s.63 read together with O.XXIII of the same Code provides for the institution of an interpleader suit to deal such cases whenever arose.
REFERENCES
1. Groundnuts Extractions Export Development Assn.v State Bank of India (1977) 79 Bom LR 184 as cited in Takwani C.K op.cit
2. Civil procedure Act Cap 33 R.E 2002
Websites
1. Wikipedia.com
[1] Concise Oxford Dictionary, 1995,p.712
[2] Halsbury’s Laws of England,(4th Edn), Vol.37 p.200,para264
[3] Mulla;Code of Civil Procedure,(2005) p.417
[4] Cap 33R.E2002
[5] Takwani C.K., Civil Procedure p.299
[6] (1908) 32 Bom.592 as cited in Jain P.M.,The Code of Civil Procedure p.250
[7] (1968) E.A338
[8] Also see Acharya N.K., Guide to CPC p.234
[9] Groundnuts Extractions Export Development Assn.v State Bank of India (1977) 79 Bom LR 184 as cited in Takwani C.K op.cit
