Part 54 – Interpleader

Scope of this Part

54.1

1. This Part deals with the situation where a –
   1. claim is made to any money, goods or chattels seized or intended to be seized by the sheriff or the proceeds or value of such goods or chattels; or
   2. person is under a liability in respect of a debt or in respect of any money, goods or chattels and a claim is made or is likely to be made against that person, by two or more persons making adverse claims in respect of the debt, money, goods or chattels.
2. The person under a liability under paragraph (1) (b) or the sheriff may apply for relief.
3. That procedure is called an “interpleader”.

 Claim to goods taken in execution

54.2

1. A person who makes a claim against any money, goods or chattels seized or about to be seized by the sheriff must give written notice to the sheriff.
2. The notice must –
   1. give that person’s name and address for service;
   2. identify the money, goods or chattels claimed; and
   3. set out the grounds of the claim.
3. Forthwith on receipt of the claim the sheriff must give written notice to the judgment creditor.
4. Within 7 days after receiving the notice the judgment creditor must give notice to the sheriff admitting or disputing the claim.
5. If the judgment creditor gives notice admitting the claim, the –
   1. judgment creditor is liable only for the fees and expenses of the sheriff incurred before the sheriff receives the notice;
   2. sheriff must withdraw from possession of the money, goods or chattels; and
   3. sheriff may apply to the court for an order restraining any claim being brought in respect of having taken possession of the money, goods or chattels.
6. If the judgment creditor gives notice disputing the claim, or fails to give notice and the claim is not withdrawn, the sheriff may apply to the court for relief under this Part.

How to interplead

54.3

1. A person interpleads by filing an application for relief by way of interpleader.
2. The application must be filed –
   1. in the court office out of which the writ of execution was issued;
   2. if a writ of execution has not been issued but there are proceedings in respect of the money, goods or chattels – in the court office in which such proceedings are being conducted; or
   3. if there are no such proceedings – in any court office.
3. An application other than by the sheriff must be supported by evidence on affidavit that the applicant –
   1. claims no interest in the subject matter in dispute other than for charges or costs;
   2. does not collude with any of the claimants to that subject-matter; and
   3. is willing to pay or transfer that subject-matter into court or dispose of it as the court directs.

Service of Interpleader application

54.4

1. An application by the sheriff must be served on the judgment creditor and on the person claiming the money, goods or chattels.
2. An application by any other person must be served on all persons making a claim to the money, goods or chattels.
3. The application must be served not less than 14 days before the date fixed for hearing of the application.

Powers of the court

54.5

1. On an application by the sheriff the court may, unless any claimant objects, summarily determine the question in issue between the parties.
2. On any other application the court may order that –
   1. any person claiming the money, goods or chattels be made a defendant in any pending claim relating to such money, goods or chattels either in addition to, or in substitution for, the applicant for relief; or
   2. the issue between two or more persons claiming the money, goods or chattels be tried, and may direct which person claiming is to be the claimant in those proceedings and which the defendant.
3. If a person making a claim to any money, goods or chattels who has been served with the application –
   1. fails to attend the hearing; or
   2. fails to comply with any order made by the court; the court may make an order barring that person and any person claiming under that person forever from prosecuting any claim to the money, goods or chattels as against the applicant and any person claiming under the applicant.
4. An order under paragraph (3) does not affect the rights as between the persons claiming the money, goods or chattels.

Power to order sale of goods taken in execution        

54.6

1. On an application by a sheriff who has seized any goods or chattels where a person claims to be entitled to such goods or chattels by way of security, the court may order that all or part of such goods or chattels be sold and the proceeds applied in accordance with the order.