17.INTERPLEADER

17. Interpleader.
Order 17.
Interpleader

1.Entitlement to relief by way of interpleader. (O. 17 r. 1)
(1)Where–

(a) a person is under a liability in respect of a debt or 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, or

(b) claim is made to any money, good or chattels taken or intended to be taken by a sheriff in execution under any process, or to the proceeds or value of any such goods or chattels, by a person other than the person against whom the process is issued, the person under liability as mentioned in sub-paragraph (a), or (subject to rule 2) the sheriff, may apply to the Court for relief by way of interpleader.

(2) References in this Order to a sheriff shall be construed as including references to any other officer charged with the execution of process by or under the authority of the High Court.

2.Claim to goods, etc., taken in execution. (O. 17 r. 2)
(1) Any person making a claim to or in respect of any money, goods or other movable property taken or intended to be taken in execution under process of the Court, or to the proceeds or value of any such goods or property, must give notice of his claim in Form 28 to the sheriff charged with the execution of the process and must include in his notice a statement of his address, and that address shall be his address for service.

(2) On receipt of a claim made under this rule the sheriff must forthwith give notice thereof in Form 29 to the execution creditor and the execution creditor must, within 4 days after receiving the notice, give notice in Form 30 to the sheriff informing him whether he admits or disputes the claim.

An execution creditor who gives notice in accordance with this paragraph admitting a claim shall only be liable to the sheriff for any fees and expenses incurred by the sheriff before receipt of that notice.

(3) Where–

(a) the sheriff receives a notice from an execution creditor under paragraph (2) disputing a claim, or the execution creditor fails, within the period mentioned in that paragraph, to give the required notice; and

(b) the claim under this rule is not withdrawn, the sheriff may apply to the Court for relief under this Order.

(4) A sheriff who receives a notice from an execution creditor under paragraph (2) admitting a claim under this rule shall withdraw from possession of the money, goods or other movable property claimed.

3.Mode of application. (O. 17 r. 3).

(1) An application for relief under this Order must be made by originating summons unless made in a pending action, in which case it must be made by summons in the action in Form 31 or 32 whichever is appropriate.

(2) No appearance need be entered to an originating summons under this rule.

(3) Subject to paragraph (4), a summons under this rule must be supported by evidence that the applicant–

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

(b) does not collude with any of the claimants to that subject-matter; and
(c) is willing to pay or transfer that subject-matter into Court or to dispose of it as the Court may direct.

(4) Where the applicant is a sheriff, he shall not provide such evidence as is referred to in paragraph (3) unless directed by the Court so to do.

4.Service of summons. (O. 17 r. 4).

(1) Unless the Court otherwise orders, the origination summons or an interpleader summons ordered under rule 3 must be served personally at least 7 days before the return day.

(2) An interpleader summons must be in one of the forms in Form 33.

5.Powers of Court hearing summons. (O. 17 r. 5).

(1) Where on the hearing of a summons under this Order all the persons by whom adverse claims to the subject-matter in dispute (hereafter in this Order referred to as "the claimants") appear, the Court may order–

(a) that any claimant be made a defendant in any action pending with respect to the subject-matter in dispute in substitution for or in addition to the applicant for relief under his Order; or

(b) that an issue between the claimants be stated and tried and may direct which of the claimants is to be plaintiff and which defendant.

(2) Where–

(a) the applicant on a summons under this Order is a sheriff; or
(b) all the claimants consent or any of them so requests; or
(c) the question at issue between the claimants is a question of law and the facts are not in dispute.

the Court may summarily determine the question at issue between the claimants and make an order accordingly on such terms as may be just.

(3) Where a claimant, having been duly served with a summons for relief under this Order, does not appear on the hearing of the summons or, having appeared, fails or refuses to comply with an order made in the proceedings, the Court may make an order declaring the claimant, and all persons claiming under him, for ever barred from prosecuting his claim against the applicant for such relief and all persons claiming under him, but such an order shall not affect the rights of the claimants as between themselves.

6.Power to order sale of goods taken in execution. (O. 17 r. 6).

Where an application for relief under this Order is made by a sheriff who has taken possession of any goods or other movable property in execution under any process, and a claimant alleges that he is entitled, under a bill of sale or otherwise, to the goods or property by way of security for debt, the Court may order those goods or property or any part thereof to be sold and may direct that the proceeds of sale be applied in such manner and on such terms as may be just and as may be specified in the order.

7.Power to stay proceedings. (O. 17 r. 7).

Where a defendant to an action applies for relief under this Order in the action, the Court may by order stay all further proceedings in the action.

8.Other powers. (O. 17 r. 8).

Subject to the foregoing rules of this Order, the Court may in or for the purposes of any interpleader proceedings make such order as to costs or any other matter as it thinks just.

9.One order in several causes or matters. (O. 17 r. 9).

Where the Court considers it necessary or expedient to make an order in any interpleader proceedings in several causes or matters pending before different Judges, the Court may make such an order; and the order shall be entitled in all those causes or matters and shall be binding on all the parties to them.

10.Discovery. (O. 17 r. 10).

Order 24 and 26 shall, with the necessary modifications, apply in relation to an interpleader issue as they apply in relation to any other cause or matter.

11.Trial of interpleader issue. (O. 17 r. 11).

(1) Order 35 shall, with the necessary modifications, apply to the trial of an interpleader issue as it applies to the trial of an action.
(2) The Court by whom an interpleader issue is tried may give such judgment or make such order as finally to dispose of all questions arising in the interpleader proceedings.
(3) The judgment must be in one of the forms in Form 34.