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DISTRICT COURT (CIVIL PROCEDURE) RULES, 2004

 

      Rule        

 

 

ORDER 14

INTERPLEADER

 

Entitlement to relief by way of interpleader

1. A person may apply to the Court for relief by way of interpleader if

(a) that person, referred to as the applicant, is under liability for a debt, money or goods for which the applicant is or expects to be sued by two or more parties, referred to as the claimants, who claim adverse titles to the debt, money or goods, or

(b) that person is a Registrar or other officer of the Court charged with the execution of process by or under the authority of the Court, and a claim is made to

(i) property taken or intended to be taken in execution under a process, or

(ii) the proceeds or value of the property by a claimant other than the person against whom the process is issued.

Mode of application

2. (1) An application for relief under this Order shall be made by motion on notice to the claimants.

(2) On the hearing of the application, the Court may order the claimants to appear and state the nature and particulars of their claims . and either maintain or relinquish them.

Application by defendant

3. Where the applicant is a defendant the application for relief may be made at any time after the service of the writ of summons or other pro­cess originating the action and the Court shall stay further proceedings until the application has been dealt with.

Matters to be proved by applicant

4. 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) is not in collusion 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 Court directs.

 Date for claimants to appear in court 5. An order under rule 2(2) shall

(a) specify the date on which the claimants shall appear in Court, and

(b) be served on the claimants .

Filing of particulars of claimants claim

6. (1) Not later than seven days after the Court makes an order under rule 2(2) or after service of the order on the claimants, if the Court so directs, a claimant who intends to maintain a claim shall file in the registry particulars of the claim, and notice of the particulars of the claim shall be given to every other claimant and to the applicant.

(2) A claimant who fails to file the particulars of the claim may not be heard by the Court and shall be considered to have abandoned the claim unless the Court directs otherwise and grants the claimant extension of time within which to file the particulars.

Order upon appearance of claimants

7. If more than one claimant appears as a result of an order made under rule 2(2), the Court may either order

(a) one of the claimants to be made a defendant in an action already commenced in respect of the subject matter in dispute, instead of or in addition to the defendant, or

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

Disposal in summary manner

8. The Court may summarily determine the questions in issue between the claimants and make an order on terms that it considers just where (a) the claimants consent or one of them so requests, or

(h) the question in issue between the parties is a question of law and the facts are not in dispute.

Power to order sale of goods taken in execution

9. Where an application for relief under this Order is made by Registrar who has taken possession of goods or chattels for the purpose of sale ill execution of any process, and a person claims to be entitled t the goods or chattels or any part of the goods or chattels under a bill sale or otherwise, the Court may direct that the proceeds of sale applied in a manner and on terms that the Court considers just.

Failure to appear or default of claimant                                  .

10. (1) The Court may make an order to declare a claimant and any person who claims under the claimant forever barred against the appli­cant and persons claiming under the applicant if the claimant is ordered by the Court to appear and maintain or relinquish the claim and the claimant,

(a) does not appears in accordance with the order, or

                (b) appears but neglects or refuses to comply with an order made after the appearance.

Other powers

11. (1) Subject to this order, the Court may in interpleader proceedings, give judgment or make an order that it considers necessary to dIspose finally of all questions that arise from the proceedings and may make an order in respect of costs or any other matter that it considers .lust.

(2) An order under submle (1) does not affect the rights of the clailnants between themselves.

 

 

 

 

 

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