Order 56 — Interpleader: Third Party Proceedings
Rule 1 Entitlement to relief by way of interpleader.
(1) Where:
(a) a person is under liability in respect of a debt or money or chattels and expects to be sued in respect of the debt or money or chattels by two or more persons making adverse claims to it; or
(b) a claim is made to any money or chattels taken or intended to be taken by the sheriff in execution under a process or to the proceeds or value of any such chattels by a person other than the person against whom the process is issued,
the person under liability as mentioned in sub-rule 1 (a) of this rule or, as the case may be, the sheriff, may apply to the Court for relief by way of interpleader.
(2) Any reference in this order to sheriff shall be construed as including references to any other officer charged with the execution of process by or under the authority of the Court.
Rule 2 Claimants to goods, etc. taken by with execution process to give notice to Sheriff.
(1) Any person making a claim to or in respect of any money, taken in goods or chattels taken or intended to be taken under process of the Court or to the proceeds or value of any such money or chattels, shall give notice of such a person’s claim to the sheriff charged with the execution of the process and shall include in the notice a statement of the person’s address, which shall be the person’s address for service.
(2) On receipt of a claim made under this rule, the sheriff shall forthwith give notice thereof to the execution creditor and the execution creditor shall, within seven (7) days after receiving the notice, give notice to the sheriff informing the sheriff as to whether execution creditor admits or disputes the claim.
(3) An execution creditor who gives notice in accordance with this provision admitting the claim shall only be liable to the sheriff for any fees and expenses incurred by the sheriff before the receipt of that notice.
(4) Where:
(a) the sheriff receives a notice from an execution creditor under sub-rule 2 of this rule, disputing a claim, or the execution creditor fails, within the period prescribed in that sub-rule to give the required notice; and
(b) the claim made under this rule is not withdrawn, the sheriff may apply to the Court under this order.
(5) A sheriff who receives a notice from an execution creditor under sub-rule 2 of this rule admitting a claim made under this provision, shall withdraw from possession of the money, under this provision of the following kind, that is to say, an order restraining the bringing of an action against the sheriff for or in respect of the sheriff having taken possession of that money or those monies or chattels.
Rule 3 Mode of application.
(1) An application for relief under this order shall be made by originating summons unless made in a pending action in which case it shall be made by motion in the action.
(2) Where the applicant is a sheriff who has withdrawn from possession of money or chattels taken in execution and who is applying for relief under rule 2 (5) of this Order, the summons shall be served on any person who made the claim under rule 2 (1) of this Order, to or in respect of that money, or those chattels, and that person may attend the hearing of the application.
(3) No appearance need be entered to an originating summons under this provision.
Rule 4 Applicant to satisfy Court by affidavit.
The applicant shall satisfy the Court by Affidavit or otherwise 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; and
(c) is willing to pay or transfer the subject matter into Court or to dispose of it as the Judge may direct.
Rule 5 Adverse titles of Claimants.
The Applicant shall not be disentitled to relief by reason only that the titles of the Claimants have no common origin, but are adverse to and independent of one another.
Rule 6 When application is made by Defendant.
Where the Applicant is a Defendant, application for relief may be made at any time after service of the Originating Process.
Rule 7 Stay of action.
Where an application is made by a Defendant in an action, the Court may stay all further proceedings in the action.
Rule 8 Order upon summons.
Where the Claimant(s) appears in pursuance of the summons, the Court or Judge in Chambers may order:
(a) either that any claimant be made a defendant in any action already commenced in respect of the subject matter in dispute in lieu of or in addition to the applicant, or
(b) that an issue between the claimants be stated and tried, and in the latter case may direct which of the claimants is to be claimant and which is to be Defendant.
Rule 9 Failure or neglect of claimant to appear to obey summons.
Where a claimant, having been duly served with a summons calling on the claimant to appear and maintain or relinquish the claims, does not appear in pursuance of the summons or having appeared neglects or refuses to comply with any order made after such appearance, the Judge may make an order declaring the claimant and all persons claiming under such claimant, forever barred against the applicant and persons claiming under applicant; but the order shall not affect the rights of the claimants as between the claimants.
Rule 10 Costs, etc.
The Court may, for the purposes of any interpleader proceedings, make all such Orders as to costs and all other matters as may be just.