Question

A is in possession of property claimed by B and C adversely. A does not claim any interest in the property and is ready to deliver it to the rightful owner. A can institute------- suit

• A. Friendly suit
• B. Caveat
• C. Interpleader
• D. Restitution

Hint:

Understand the specific purpose of different types of suits and procedures under the CPC. Differentiating between concepts like interpleader suits, summary suits, representative suits, and caveats is fundamental for procedural law questions.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The scenario describes a situation where a person (A) is in possession of property or money that they do not claim for themselves, but which is being claimed by two or more other persons (B and C) against each other. The question asks for the name of the legal proceeding that 'A' can initiate to resolve this situation.
Step 2: Key Formula or Approach:
This situation is addressed by the provisions for an 'Interpleader Suit' under the Code of Civil Procedure, 1908 (CPC). The relevant provisions are:
- Section 88 of CPC: Lays down the conditions under which an interpleader suit can be filed.
- Order XXXV of CPC: Provides the detailed procedure for such suits.
Step 3: Detailed Explanation:
An Interpleader suit is a lawsuit initiated by a party who holds property on behalf of another, to decide who among two or more rival claimants is the rightful owner. The person filing the suit (the plaintiff, 'A' in this case) must be a neutral stakeholder. Their objective is not to win the property, but to get a judicial decision on whom to deliver the property to, thereby protecting themselves from future litigation from the unsuccessful claimant.
In the given problem:
- 'A' is the neutral stakeholder in possession of the property.
- 'B' and 'C' are the rival claimants.
- 'A' does not claim any interest in the property.
This is the classic scenario for filing an interpleader suit.
- A Caveat is a notice filed to a court to prevent an ex-parte order.
- Restitution is the restoration of something lost or stolen to its proper owner.
- A Friendly suit is a non-adversarial suit to get a court's opinion.
Step 4: Final Answer:
The correct legal action for A to take is to institute an Interpleader suit.

Answer 2

The facts describe someone, A, sitting on property that two rival claimants, B and C, both want, while A personally wants no part of it and is willing to hand it over to whoever the court says is entitled. The question is asking which named legal proceeding fits that exact fact pattern, so let's check what each term actually means.

1. Friendly suit: A friendly suit is one where the parties are not really opposed to each other but want the court's guidance or a binding ruling on a genuine legal question, often for the benefit of persons under disability, such as minors. It assumes cooperative parties seeking clarity, not a neutral holder caught between two hostile rival claimants.
2. Caveat: A caveat under Section 148A of the Code of Civil Procedure is simply a notice lodged with a court asking to be heard before any order is passed against the person who lodges it, most commonly to prevent an ex parte injunction. It is not a suit at all, and has nothing to do with resolving competing ownership claims.
3. Interpleader: Under Section 88 and Order XXXV of the Code of Civil Procedure, an interpleader suit is exactly this situation: a person in possession of property, who claims no interest in it other than for charges or costs, and against whom two or more persons are making adverse claims, can file a suit asking the court to decide who among the rival claimants is entitled to it. A must also show there is no collusion between it and either claimant. This matches the facts precisely.
4. Restitution: Restitution, dealt with under Section 144 of the CPC, is the process of restoring a party to the position it was in before a decree that is later varied or reversed, for instance returning money or property taken under a decree that an appellate court later sets aside. It presumes an earlier decree already exists, which is not the situation described here at all.

Since A is a neutral stakeholder facing adverse claims from two other parties and wants the court to settle who the rightful owner is, this is the classic case for interpleader.

So the correct answer is Interpleader.