Interpleader suit in Tanzania (notes, examples & pdf)

Here I will provide easy-to-understand notes for the Interpleader suit in Tanzania.

These notes will cover

• meaning and example of interpleader
• the law governing Interpleader Proceedings in Tanzania
• who may file an interpleader suit?
• who may not file an interpleader suit?
• conditions to institute interpleader suit
• Plaint in Interpleader Suits and Proceedings
• sample of interpleader plaint pdf
• etc

Let’s get started

What is an interpleader suit?

An interpleader suit is a legal action brought by a third party, typically someone holding property or funds, to resolve a dispute between two or more other parties claiming a right to the same property or funds.

In an interpleader suit, the dispute is not between the plaintiff and defendant but between the defendants who claim the property which is in the plaintiff’s possession.

Are we together?

if not, let me give you an example;

Assume you have a shop, and X comes to your shop. After a long shopping session, he forgets his bag and leaves.

You don’t know the owner, but you decide to keep the bag. Later on, Y comes to your shop, sees the bag, and claims it is his bag for reasons known only to him.

Suddenly, X returns to your shop and asks for his bag. Now that you have the bag, you claim no interest in it and you’re willing to hand it over to the rightful owner. The bag is claimed by both X and Y.

In this situation, you may file an interpleader suit against both X and Y so the court may decide who is the rightful owner of the bag.

Your case will look like this;

YOU……..PLAINTIFF

vs

X………1st Defendant

Y………2nd Defendant

Mulla in his wonderful book, Code of Civil Procedure stated that an interpleader suit is a suit in which the real dispute is not between a plaintiff and a defendant but between the defendants who interplead against each other; unlike in an ordinary suit in an interpleader suit, the plaintiff is not really interested in the subject matter of the suit.

Further Section 63 of CPC provides that

Where two or more persons claim adversely to one another the same debt, 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 for the purpose of obtaining a decision as to the person to whom the payment or delivery shall be made and of obtaining indemnity for himself:

NB: The interpleader suit can not be instituted where there is a pending case in which the rights of parties can properly be decided. (kuwa makini sana hapa, linaweza likaja swali la scenerio, mtego ukawa hapa)

Law Govern Interpleader Proceedings in Tanzania

The law which governs interpleader proceedings in Tanzania is Section 63 and Order XXXIII of the Civil Procedure Code [CAP 33 R.E. 2002; R.E. 2019] (CPC)

Who may institute an Interpleader suit?

The person who has the legal right (locus standi) to file an interpleader suit is the one who is in possession of the disputed property but has no interest in it and he is ready to deliver it to the rightful owner. -(see the CRDB case below)

Who May Not Institute  Interpleader Suit?

Certain people have been precluded from instituting an interpleader suit by law. 

Generally, agents cannot institute interpleader suits against their principles and tenants cannot institute interpleader suits against their landlords. (see Order XXXIII RULE 5) (hapa pia kuna mtego, kuwa makini)

Conditions to Institute Interpleader Suit

The following are the conditions that must be satisfied before an interpleader suit can be instituted.

1. There must be a property in dispute. (ie. some debt, sum of money or other property movable or immovable)
2. Two or more persons claiming it must be adversely to one another
3. The person in possession of that property must not be claiming an interest therein other than the charges and costs and he must be ready and willing to pay or deliver it to the rightful claimant/owner
4. There must be no pending suit where the ownership of disputed property between the claimants can properly be decided.
5. There must be no collusion between the plaintiff and any of the defendants.

NB. In an interpleader suit, the plaintiff must be in a neutral position. Otherwise, he cannot file an interpleader suit.

In the case of Jugnath v Tulka (1908) 32 Bom.592, it was held that ‘A person who has taken an indemnity from one of the claimants is not entitled to file an interpleader suit.’

In that case, A had a sum of Rs.10, 000 which sum was claimed from him both by X and Y, adversely to each other. A instituted an interpleader suit against X and Y.

It was found at the hearing that A had agreed with X before the suit was instituted, that if X succeeded in the suit, he would accept from A, R.s 7,500 only in full of the satisfaction of his claim.

Here A had an interest in the subject matter of the suit by his agreement with X. He was therefore not entitled to institute an interpleader suit and accordingly his suit was dismissed.

The rationale for Interpleader Suit

In the case of Groundnut Extractions Export Development Assn. v State Bank of India (1977) 79 Bom LR 184 it was stated that the rationale behind filing an interpleader suit is to get claims of the rival defendants adjudicated.

It is the process wherein the plaintiff calls upon the rival claimants to appear before the court and get their claims decided.

The decision of the court in an interpleader suit affords an indemnity to the plaintiff on the payment of money or delivery of property to the person whose claim has been upheld by the court

Plaint in Interpleader Suits and Proceedings

In every interpleader suit, the plaint shall in addition to other statements necessary for plaint state;

1. that the plaintiff claims no interest in the subject matter in dispute other than for charges or costs;
2. that the claims made by the defendants severally
3. that there is no collusion between the plaintiff and any of the defendants.

See the sample of interpleader plaint below

Procedures in Interpleader suit

After starting the interpleader lawsuit, the court might tell the person who filed it to put the money or property they’re fighting over into the court’s care before they can get any decisions from the court about it.

At the first hearing, the court may decide that the person who filed the lawsuit (the plaintiff) is not responsible for anything, the judge will also order that the plaintiff be paid for their legal expenses and end their involvement in the case.

However, if the judge believes it’s necessary for fairness, all parties involved in the case may have to stay involved until the case is completely resolved.

If the court can figure out who owns something based on what the people involved say or other proof, it can decide who owns it.

If the court can’t decide based on what the parties said, it can do two things:

1. order that an issue or issues between the parties be framed and tried
2. order that any claimant be made a plaintiff instead of or in addition to the original plaintiff, and shall proceed to try the suit ordinarily. (see PRAYGOD MBAGA case below)

Real-life cases on Interpleader suit in Tanzania

Sample of interpleader plaint pdf

The following sample is based on the example I provided before when explaining what is an interpleader suit.

Download “Sample of interpleader plaint Tanzania” Membership Required: Free

Conclusion

My aim here was to provide Interpleader suit in Tanzania notes in an easy-to-understand way.

Hope you have found these notes useful, in case you have any questions concerning this topic, feel free to leave a comment right now!

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