Order 35 MCQ Quiz - Objective Question with Answer for Order 35 - Download Free PDF

The correct answer is Option 3. 

Key Points

• An interpleader suit is governed by Se ction 88 and Order 35 of the Code of Civil Procedure, 1908.
• It is filed by a person who:
  • Holds property or money on behalf of others,
  • Claims no interest in the subject matter except for charges or costs,
  • Faces rival claims from two or more parties over the same subject matter.
• In this case:
  • ‘B’ (agent) is in possession of the box of jewels.
  • ‘A’, the depositor, claims the jewels.
  • ‘C’ also claims the same jewels, alleging they were wrongfully taken from him.
  • ‘B’ has no personal interest in the jewels except to avoid liability and get a legal direction.
• Therefore, ‘B’ is entitled to file an interpleader suit against both ‘A’ and ‘C’ to compel them to litigate among themselves and establish their rightful claim.

Additional Information

• Institute interpleader suit against ‘A’ – Cannot be filed against only one claimant.
• Institute interpleader suit against ‘C’ – Again, must be against all rival claimants, not one.
• Cannot institute an interpleader suit against ‘A’ and ‘C’ –  Incorrect, because this is a textbook case where interpleader suit is proper.

The correct answer is Rs 3,000/-

Key Points

• Section 35A of the Code of Civil Procedure, 1908 deals with Compensatory Costs in respect of false or vexatious claims or defences.
• The maximum amount a court may award as compensatory costs under this section is Rs. 3,000, or the amount within the court’s pecuniary jurisdiction, whichever is less.
• This provision is meant to deter frivolous litigation and unnecessarily false defences.

Additional Information

• Option 1. Rs 10,000/- – Incorrect: This exceeds the statutory cap under Section 35A.
• Option 3. Rs 25,000/- – Incorrect: Also exceeds the legal limit; not applicable unless legislation is amended.
• Option 4. Any amount – Incorrect: There is a statutory ceiling of Rs. 3,000, not an unlimited figure.

The correct answer is Order XXXV.

Key Points

• An Interpleader Suit is a special type of suit provided under Order XXXV of the Code of Civil Procedure, 1908 (CPC). It is filed when a person (the plaintiff) is in possession of money or property but does not claim any interest in it, and multiple parties (defendants) are making conflicting claims over it. 
• Key Features of an Interpleader Suit (Order 35, CPC):
  • The plaintiff is a neutral party who does not claim any personal interest in the subject matter.
  • The defendants are rival claimants, both asserting conflicting rights over the same property or money.
  • The court determines the rightful claimant, so the plaintiff can avoid multiple liabilities.
• Example: A bank holds money deposited by a deceased account holder. Two individuals claim to be the legal heirs of the deceased. Instead of paying either one, the bank may file an interpleader suit under Order XXXV, requesting the court to decide the rightful heir.

The correct answer is option 2

Key Points

• An interpleader suit is a legal remedy provided under the Civil Procedure Code when a person holding money or property is faced with conflicting claims from two or more parties.
• The purpose of an interpleader suit is to avoid multiple legal actions and to allow the conflicting claimants to litigate and determine their rights among themselves.
• Order 35 of the CPC deals with "Interpleader."
• The relevant sections in the Civil Procedure Code that deal with interpleader suits are primarily Sections 88.
• Section 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 to obtain 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.

The correct answer is  option 3

Key Points

• Procedure for Institution of Interpleader Suit:-
  • The procedure is provided under Order 35 Rule 1 to 6 (Interpleader) of CPC as follows-
    • Rule 1: It states that the plaintiff while filing a suit of interpleader must also state:
      • That he claims no interest in the subject matter in dispute other than for charges or costs. The claims are made by the defendants severally. That there is no collusion between the plaintiff and any of the defendants.
    • Rule 2:
      • It mentions that 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.
    • Rule 3:
      • It states that where the defendant in an interpleader suit sues the plaintiff in respect of the subject matter, any court in which the suit against the plaintiff is pending shall on being informed by the Court in which the suit of interpleader is pending stay such suit.
    • Rule 4: At the first hearing the court may declare that:
      • The plaintiff is discharged from all liability towards the defendant in respect of things claimed. If the court thinks that for ends of justice to meet all parties need to be retained, till the end, it may retain such party.
    • Rule 5:
      • It mentions that agents and tenants may not institute interpleader suits against their principal and landlord respectively.
    • Illustration -
      • 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.
    • Rule 6: Charge for Plaintiff’s Costs—
      • 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.

The correct option is Option 4.

Key Points

• Order 35, Rule 5 CPC:- Agents and tenants may not institute interpleader suits.
  • "Nothing in the Order shall be deemed to enable agents to sue their principles, or tenants to sue their landlords, to compel them to interplead with any person other than persons claiming such principals or landlords."
• Illustrations-
  • 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. 
  • A deposits a box of jewels with B as his agent. He then writes to C to make 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 interpleader suit against A and C.

Additional Information

• Order XXXV Rule 4 addresses the procedure at the first hearing of an interpleader suit.
• Order XXXV Rule 3: Procedure where Defendant is Suing the Plaintiff in an Interpleader Suit.
• Section 88 CPC: Where interpleader suit may be reinstituted.
• Section 90 CPC: Power to state the case for the opinion of the Court.

The Correct answer is Section 88

Key Points Section 88 in conjunction with Order XXXV of the Code of Civil Procedure, 1908 pertains to interpleader suits.

• An interpleader suit is distinct in that the core dispute does not involve the plaintiff and the defendant; rather, it revolves solely around conflicts between the defendants.
• In this type of legal action, the defendants engage in inter-pleading against each other.
• The distinguishing feature of an interpleader suit lies in the fact that the plaintiff has no genuine interest in the subject-matter under contention.

The correct option is Option 4.

Key Points

• Order 35, Rule 5 CPC:- Agents and tenants may not institute interpleader suits.
  • "Nothing in the Order shall be deemed to enable agents to sue their principles, or tenants to sue their landlords, to compel them to interplead with any person other than persons claiming such principals or landlords."
• Illustrations-
  • 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. 
  • A deposits a box of jewels with B as his agent. He then writes to C to make 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 interpleader suit against A and C.

Additional Information

• Order XXXV Rule 4 addresses the procedure at the first hearing of an interpleader suit.
• Order XXXV Rule 3: Procedure where Defendant is Suing the Plaintiff in an Interpleader Suit.
• Section 88 CPC: Where interpleader suit may be reinstituted.
• Section 90 CPC: Power to state the case for the opinion of the Court.

The correct option is Veena cannot institute an interpleader suit against Amit and Chetan.

Key Points

• Order 35, Rule 5 CPC:- Agents and tenants may not institute interpleader suits.
  • "Nothing in the Order shall be deemed to enable agents to sue their principles, or tenants to sue their landlords, to compel them to interplead with any person other than persons claiming such principals or landlords."
• Illustrations-
  • 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. 
  • A deposits a box of jewels with B as his agent. He then writes to C to make 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 interpleader suit against A and C.

Additional Information

• Order XXXV Rule 4: addresses the procedure at the first hearing of an interpleader suit.
• Order XXXV Rule 3: Procedure where Defendant is Suing the Plaintiff in an Interpleader Suit.
• Section 88 CPC: Where interpleader suit may be reinstituted.
• Section 90 CPC: Power to state the case for the opinion of the Court.

The correct answer is Option 3. 

Key Points

• An interpleader suit is governed by Se ction 88 and Order 35 of the Code of Civil Procedure, 1908.
• It is filed by a person who:
  • Holds property or money on behalf of others,
  • Claims no interest in the subject matter except for charges or costs,
  • Faces rival claims from two or more parties over the same subject matter.
• In this case:
  • ‘B’ (agent) is in possession of the box of jewels.
  • ‘A’, the depositor, claims the jewels.
  • ‘C’ also claims the same jewels, alleging they were wrongfully taken from him.
  • ‘B’ has no personal interest in the jewels except to avoid liability and get a legal direction.
• Therefore, ‘B’ is entitled to file an interpleader suit against both ‘A’ and ‘C’ to compel them to litigate among themselves and establish their rightful claim.

Additional Information

• Institute interpleader suit against ‘A’ – Cannot be filed against only one claimant.
• Institute interpleader suit against ‘C’ – Again, must be against all rival claimants, not one.
• Cannot institute an interpleader suit against ‘A’ and ‘C’ –  Incorrect, because this is a textbook case where interpleader suit is proper.

The correct answer is Order 35 

Key Points

• An interpleader suit is filed by a person who holds money or property but does not claim any interest in it and is facing rival claims from two or more parties.
• The purpose is to compel the claimants to litigate among themselves, so the stakeholder is protected from multiple liabilities.
• Key Details:
  • Order 35 of the Code of Civil Procedure, 1908 specifically deals with:
    • Who may file an interpleader suit
    • Conditions for filing
    • Procedure to follow
    • Relief available to the plaintiff

Additional Information

• Order 50 – No such order exists in CPC.
• Order 55 – No such order in CPC for interpleader suits.
• Order 40 – Relates to the appointment of a receiver, not interpleader suits.

The correct answer is Rs 3,000/-

Key Points

• Section 35A of the Code of Civil Procedure, 1908 deals with Compensatory Costs in respect of false or vexatious claims or defences.
• The maximum amount a court may award as compensatory costs under this section is Rs. 3,000, or the amount within the court’s pecuniary jurisdiction, whichever is less.
• This provision is meant to deter frivolous litigation and unnecessarily false defences.

Additional Information

• Option 1. Rs 10,000/- – Incorrect: This exceeds the statutory cap under Section 35A.
• Option 3. Rs 25,000/- – Incorrect: Also exceeds the legal limit; not applicable unless legislation is amended.
• Option 4. Any amount – Incorrect: There is a statutory ceiling of Rs. 3,000, not an unlimited figure.

The correct answer is Order XXXV.

Key Points

• An Interpleader Suit is a special type of suit provided under Order XXXV of the Code of Civil Procedure, 1908 (CPC). It is filed when a person (the plaintiff) is in possession of money or property but does not claim any interest in it, and multiple parties (defendants) are making conflicting claims over it. 
• Key Features of an Interpleader Suit (Order 35, CPC):
  • The plaintiff is a neutral party who does not claim any personal interest in the subject matter.
  • The defendants are rival claimants, both asserting conflicting rights over the same property or money.
  • The court determines the rightful claimant, so the plaintiff can avoid multiple liabilities.
• Example: A bank holds money deposited by a deceased account holder. Two individuals claim to be the legal heirs of the deceased. Instead of paying either one, the bank may file an interpleader suit under Order XXXV, requesting the court to decide the rightful heir.

The correct answer is option 2

Key Points

• An interpleader suit is a legal remedy provided under the Civil Procedure Code when a person holding money or property is faced with conflicting claims from two or more parties.
• The purpose of an interpleader suit is to avoid multiple legal actions and to allow the conflicting claimants to litigate and determine their rights among themselves.
• Order 35 of the CPC deals with "Interpleader."
• The relevant sections in the Civil Procedure Code that deal with interpleader suits are primarily Sections 88.
• Section 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 to obtain 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.

The correct answer is  option 3

Key Points

• Procedure for Institution of Interpleader Suit:-
  • The procedure is provided under Order 35 Rule 1 to 6 (Interpleader) of CPC as follows-
    • Rule 1: It states that the plaintiff while filing a suit of interpleader must also state:
      • That he claims no interest in the subject matter in dispute other than for charges or costs. The claims are made by the defendants severally. That there is no collusion between the plaintiff and any of the defendants.
    • Rule 2:
      • It mentions that 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.
    • Rule 3:
      • It states that where the defendant in an interpleader suit sues the plaintiff in respect of the subject matter, any court in which the suit against the plaintiff is pending shall on being informed by the Court in which the suit of interpleader is pending stay such suit.
    • Rule 4: At the first hearing the court may declare that:
      • The plaintiff is discharged from all liability towards the defendant in respect of things claimed. If the court thinks that for ends of justice to meet all parties need to be retained, till the end, it may retain such party.
    • Rule 5:
      • It mentions that agents and tenants may not institute interpleader suits against their principal and landlord respectively.
    • Illustration -
      • 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.
    • Rule 6: Charge for Plaintiff’s Costs—
      • 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.