Rule 3 of CPC : Rule 3: Procedure where defendant is suing plaintiff.

Explanation using Example

Example 1:

Scenario: Ravi owns a piece of land. Both Suresh and Mahesh claim that they are the rightful owners of the land. Ravi, unsure of who the real owner is, files an interpleader suit in Court A, asking the court to decide who the rightful owner is.

Application: While the interpleader suit is pending in Court A, Suresh files a separate lawsuit against Ravi in Court B, claiming ownership of the same piece of land.

Outcome: According to Rule 3 of Order XXXV of The Code Of Civil Procedure 1908, Court B, upon being informed by Court A about the interpleader suit, will stay the proceedings of Suresh's lawsuit against Ravi. This means that Court B will pause the case until the interpleader suit in Court A is resolved. Additionally, any costs incurred by Suresh in the stayed suit may be covered in the interpleader suit or added to his costs in the interpleader suit.

Example 2:

Scenario: Meena has a valuable painting. Both Anil and Sunita claim that the painting belongs to them. Meena, not knowing who the true owner is, files an interpleader suit in Court X to resolve the ownership issue.

Application: While the interpleader suit is ongoing in Court X, Sunita files a separate lawsuit against Meena in Court Y, demanding the painting.

Outcome: According to Rule 3 of Order XXXV of The Code Of Civil Procedure 1908, Court Y, upon being informed by Court X about the interpleader suit, will stay the proceedings of Sunita's lawsuit against Meena. This means that Court Y will halt the case until the interpleader suit in Court X is decided. Additionally, any costs incurred by Sunita in the stayed suit may be covered in the interpleader suit or added to her costs in the interpleader suit.