Section 88 of CPC : Section 88: Where interpleader-suit may be instituted.

Explanation using Example

Example 1:

Rajesh is a jeweler in Mumbai. He has a diamond necklace worth ₹5 lakhs in his possession. Two customers, Priya and Anjali, both claim that the necklace belongs to them. Priya says she bought the necklace and left it with Rajesh for safekeeping, while Anjali claims she inherited it from her grandmother and had given it to Rajesh for cleaning. Rajesh has no personal interest in the necklace other than the safekeeping charges he is owed. To resolve this dispute without getting involved in the conflict, Rajesh files an interpleader suit in the civil court. The court will then decide who the rightful owner of the necklace is, and Rajesh will be indemnified from any further claims once the decision is made.

Example 2:

Suresh is a landlord in Delhi who rented out a commercial property to a company. The company has since dissolved, and two former directors, Ramesh and Mahesh, are both claiming the security deposit of ₹2 lakhs that was paid at the beginning of the lease. Suresh has no interest in the security deposit other than ensuring it goes to the rightful claimant. To avoid the risk of paying the wrong person and facing legal consequences, Suresh files an interpleader suit in the civil court. The court will determine whether Ramesh or Mahesh is entitled to the security deposit, and Suresh will be protected from any further liability once the court makes its decision.