Drafting 1.2
Drafting 1.2
Drafting 1.2
Section 88 and order XXXV of the Civil Procedure Code 1908 deals with the
provision of interpleader suits. Generally, ordinary suits that are filed before the
Hon’ble court are between two parties, the plaintiff and the defendant. But the
interpleader suit is unlike the ordinary suits between the two defendants who fight for
a claim over a particular good, debt, or chattel. The plaintiff in such suits usually do
not have any real interest in the subject matter of the suit and institute the suit to only
make sure that the property in dispute is put in the custody of the actual owner.
Where two or more persons claim adversely to one another the same debts, 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:
Provided that where any suit is pending in which the rights of all parties can
properly be decided, no such suit of interpleader shall be instituted.
Conditions: section 88:- For filing an interpleader suit there must be satisfying the
following conditions:-
a) There must be debt, sum of money or other movable or immovable property in
dispute
b) There must be two or more persons claiming it adversely to one another
c) The person from whom such debt, money or movable or immovable property is
claimed must not be claiming interest therein other than two charges and cost and
he must be ready and willing to pay or deliver it to the rightful claimant.
d) There must be no suit pending wherein the rights of rival claimants and can be
properly adjudged.
Section 39 of the Indian Partnership Act 1932 states that the dissolution of
partnership firm among all the partners of the partnership firm is the Dissolution of
the Partnership Firm. The dissolution of partnership firm ceases the existence of the
organization.
After this, the partnership firm cannot enter into any transaction with anybody. It can
only sell the assets to realize the amount, pay the liabilities of the firm and discharge
the claims of the partners.
However, the dissolution of a firm may be without or with the intervention of the
court. It is noteworthy here that the dissolution of partnership may not necessarily
result in the dissolution of the firm.
Following are the ways in which dissolution of a partnership firm takes place:
1. Dissolution by Agreement
A firm may be dissolved if all the partners agree to the dissolution. Also, if there
exists a contract between the partners regarding the dissolution, the dissolution may
take place in accordance with it.
2. Compulsory Dissolution
In the following cases the dissolution of a firm takes place compulsorily:
● Insolvency of all the partners or all but one partner as this makes them
incompetent to enter into a contract.
● When the business of the firm becomes illegal due to some reason.
● When due to some event it becomes unlawful for the partnership firm to carry
its business. For example, a partnership firm has a partner who is of another
country and India declares war against that country, then he becomes an
enemy. Thus, the business becomes unlawful.
● The firm is formed for a fixed term, on the expiry of that term.
● The firm is formed to carry out specific venture, on the completion of that
venture.
● A partner dies.
● A partner becomes insolvent.
4. Dissolution by Notice
When the partnership is at will, the dissolution of a firm may take place if any one of
the partners gives a notice in writing to the other partners stating his intention to
dissolve the firm.
5. Dissolution by Court
When a partner files a suit in the court, the court may order the dissolution of the firm
on the basis of the following grounds: