Code of Civil Procedure, 1908 · Part IV: Suits In Particular Cases

Section 88 CPC: Where interpleader-suit may be instituted

Bare Act text

88. Where interpleader suit may be instituted.—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.

Text of the Code of Civil Procedure, 1908 (Act No. 5 of 1908), as amended, including the changes for commercial disputes made by the Commercial Courts Act, 2015. Source: India Code, Government of India.

In simple words

Where two or more persons claim adversely to each other the same debt, sum of money or property from another person who claims no interest in it apart from charges or costs and is ready to pay or deliver it to the rightful claimant, that person may file an interpleader suit against all the claimants. The suit seeks a decision on whom to pay and indemnity for himself. The proviso bars it where a pending suit can properly decide the rights of all the parties.