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35. INTERPLEADER

15 judgments cite this provision SC

Costs.

1. Plaint in interpleader suit.

(1) Subject to such conditions and limitations as may be prescribed, and to the provisions of any law for the time being in force, the costs of an incident to all suits shall be in the discretion of the Court, and the Court shall have full power to determine by whom or out of what property and to what extent such costs are to be paid, and to give all necessary directions for the purposes aforesaid. The fact that the Court has no jurisdiction to try the suit shall be no bar to the exercise of such powers.

(a) that the plaintiff claims no interest in the subject-matter in dispute other than for charges or costs;

(2) Where the Court directs that any costs shall not follow the event, the Court shall state its reasons in writing.

(b) the claims made by the defendants severally; and

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(c) that there is no collusion between the plaintiff and any of the defendants.

*[35. Costs.(1) In relation to any commercial dispute, the Court, notwithstanding anything contained in any other law for the time being in force or Rule, has the discretion to determine:

2. Payment of thing claimed into Court.

(a) whether costs are payable by one party to another;

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.

(b) the quantum of those costs; and

3. Procedure where defendant is suing plaintiff.

(c) when they are to be paid.

Where any of the defendants, in an interpleader suit is actually suing the plaintiff in respect of the subject-matter of such suit, the Court in which the suit against the plaintiff is pending shall, on being informed by the Court in which the interpleader suit has been instituted, stay the proceedings as against him; and his costs in the suit so stayed may be provided for in such suit; but if, and in so far as, they are not provided for in that suit, they may be added to his costs incurred in the interpleader suit.

Explanation.-- For the purpose of clause (a), the expression costs shall mean reasonable costs relating to--

4. Procedure at first hearing.

(i) the fees and expenses of the witnesses incurred;

(1) (a) declare that the plaintiff is discharged from all liability to the defendants in respect of the thing claimed, award him his costs, and dismiss him from the suit; or (b) if it thinks that justice or convenience so require, retain all parties until the final disposal of the suit.

(ii) legal fees and expenses incurred;

(2) Where the Court finds that the admissions of the parties or other evidence enable it to do so, it may adjudicate the title to the thing claimed.

(iii) any other expenses incurred in connection with the proceedings.

(3) (a) that an issue or issue between the parties be framed and tried, and (b) that any claimant be made a plaintiff in lieu of or in addition to the original plaintiff, and shall proceed to try the suit in the ordinary manner.

(2) If the Court decides to make an order for payment of costs, the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party:

5. Agents and tenants may not institute interpleader suits.

Provided that the Court may make an order deviating from the general rule for reasons to be recorded in writing.

Nothing in this Order shall be deemed to enable agents to sue their principals, or tenants to sue their landlords, for the purpose of compelling them to interplead with any persons other than persons making claim through such principals or landlords.

Illustration
(a) A deposits a box of jewels with B as his agent. C alleges that the jewels were wrongfully obtained from him by A, and claims them from B. B cannot institute an interpleader-suit against A and C.

The Plaintiff, in his suit, seeks a money decree for breach of contract, and damages. The Court holds that the Plaintiff is entitled to the money decree. However, it returns a finding that the claim for damages is frivolous and vexatious.

(b) A deposits a box of jewels with B as his agent. He then writes to C for the purpose of making the jewels a security for a debt due from himself to C. A afterwards alleges that C’s debt is satisfied, and C alleges the contrary. Both claim the jewels from B. B may institute an interpleaded-suit against A and C.

In such circumstances the Court may impose costs on the Plaintiff, despite the Plaintiff being the successful party, for having raised frivolous claims for damages.

6. Charge for plaintiff’s costs.

(3) In making an order for the payment of costs, the Court shall have regard to the following circumstances, including--

Where the suit is properly instituted the Court may provide for the costs of the original plaintiff By giving him a charge on the thing claimed or in some other effectual way.

(a) the conduct of the parties;
(b) whether a party has succeeded on part of its case, even if that party has not been wholly successful;
(c) whether the party had made a frivolous counterclaim leading to delay in the disposal of the case;
(d) whether any reasonable offer to settle is made by a party and unreasonably refused by the other party; and
(e) whether the party had made a frivolous claim and instituted a vexatious proceeding wasting the time of the Court.

(4) The orders which the Court may make under this provision include an order that a party must pay--

(a) a proportion of another partys costs;
(b) a stated amount in respect of another partys costs;
(c) costs from or until a certain date;
(d) costs incurred before proceedings have begun;
(e) costs relating to particular steps taken in the proceedings;
(f) costs relating to a distinct part of the proceedings; and
(g) interest on costs from or until a certain date.]