Question

"A", a railway company is in possession of goods as a consignee. It does not claim any interest in the goods except lien of wharfage, demurrage and freight but rival claims have been made by "B" and "C" adversely to each other "A" can institute

• A. An application to decide the same
• B. An interpleader suit
• C. Friendly suit
• D. None of the above

Hint:

Remember the purpose of an interpleader suit: it is a remedy for a person who is in a position of a stakeholder, not for a person who has a personal interest in the subject matter of the dispute. The classic example is a bailee (like a railway company or warehouse) or an insurer facing claims from multiple beneficiaries.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
An interpleader suit is a legal proceeding initiated by a neutral third party (the plaintiff/stakeholder) who holds property or owes money that is being claimed by two or more other parties (the defendants/claimants). The purpose of the suit is to have the court decide who is the rightful owner of the property or money.
Step 2: Key Formula or Approach:
The conditions for filing an interpleader suit are laid down in Section 88 of the Code of Civil Procedure, 1908 (CPC). The key conditions are:
1. There must be some debt, sum of money, or other property in dispute.
2. Two or more persons must be claiming it adversely to one another.
3. The person from whom the property is claimed (the plaintiff) must not have any interest in it, other than for charges or costs.
4. The plaintiff must be willing to pay or deliver the property to the rightful claimant.
5. There must be no suit already pending in which the rights of the rival claimants can be properly decided.
Step 3: Detailed Explanation:
Let's apply these conditions to the given scenario:
- Property in dispute: The goods held by the railway company.
- Adverse claimants: "B" and "C" are making rival claims.
- Plaintiff's interest: The railway company "A" claims no interest except its lien for charges (wharfage, demurrage, freight), which is permissible.
- Willingness to deliver: "A" wants to deliver the goods to the rightful owner.
The situation perfectly matches the requirements of an interpleader suit. By filing this suit, the railway company ("A") can deposit the goods with the court and ask the court to compel "B" and "C" to "interplead," i.e., to litigate against each other to determine the rightful owner. This protects "A" from being sued by both parties.