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A leaves a box of gold coins with B as his agent and writes to C making the coins security for a debt A…

Order XXXV rule 5, illustration (b), permits the agent to sue both claimants when the other claim comes through the principal. C claims through A’s grant of security.…

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A leaves a box of gold coins with B as his agent and writes to C making the coins security for a debt A owes C. A says the debt has been paid. C disagrees, and each claims the coins from B. B claims no interest apart from charges or costs and is willing to deliver the coins to whoever is entitled. No pending suit can determine their rights. Under the Code of Civil Procedure, 1908, whom may B sue in interpleader?

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Answer and explanation

Correct answer D

Order XXXV rule 5, illustration (b), permits the agent to sue both claimants when the other claim comes through the principal. C claims through A’s grant of security. Section 88 supplies the general requirements for interpleader.

Option feedback

Option A

A is one claimant, but interpleader must bring both adverse claimants before the court.

Option B

C is one claimant, but excluding A would leave the competing claim outside the suit.

Option C

C claims through A, so the ordinary bar against an agent compelling a principal to interplead with an independent claimant does not apply.

Option D

C’s claim derives from the security A granted. B may sue the two adverse claimants together.

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