Interpleader
411 Relief by way of interpleader may be granted:
Cases in which relief granted
(a) where the person seeking relief (in this part called the applicant) is under liability for any debt, money, goods or chattels, for or in respect of which he is, or expects to be sued by two or more parties (in this part called the claimants) making adverse claims thereto;
(b) when the applicant is a sheriff or other officer of the court charged with the execution of process by or under the authority of the court, or required to make a seizure of chattels under any chattel mortgage or other instrument creating a lien or charge upon goods or chattels, or reserving a right of possession in the same and claim is made to any land, money, goods or chattels taken or intended to be taken in execution or attachment under any such process or to any goods or chattels seized or repossessed under any such chattel mortgage or other instrument as aforesaid, or to the proceeds or value of any such land, goods or chattels, by:
(i) any person other than the person against whom the process issued; (ii) any landlord for rent;
(iii) any execution creditor claiming priority under any previous judgment, execution, process or proceeding;
(iv) any party claiming the benefit of any exemptions allowed by law.
The sheriff or other officer may apply for such relief notwithstanding the fact that he has, before making such seizure or repossessing such goods, taken from the execution creditor or other person authorizing or requiring him to make such seizure or to repossess such goods, a bond or other security by way of indemnity or otherwise. R. 411.
Matters to be proved by applicant
412 The applicant must satisfy the court by affidavit or otherwise:
(a) that the applicant claims no interest in the subject matter in dispute, other than for charges or costs; and
(b) that the applicant does not collude with any of the claimants; and
(c) that the applicant, except where he is a sheriff or other officer of the court charged with the execution of process by or under the authority of the court, or authorized and required to seize any goods under a chattel mortgage or other instrument creating a lien or charge on any goods or chattels or reserving a right of possession in respect of any goods and chattels and who has withdrawn from possession in consequence of the execution creditor admitting the claim of the claimant under Rule 421 of this part, is willing to pay or transfer the subject matter into court or to dispose of it as the court may direct. R. 412.
Adverse titles
413 The applicant shall not be disentitled to relief by reason only that the titles of the claimants have not a common origin, but are adverse to and independent of one another. R. 413.
Defendant applying
414 Where the applicant is a defendant, application for relief shall be made in the action at any time after service of the Statement of Claim, and the court may stay all proceedings in the action. R. 414.
Form of application
415(1) Such applications shall be made by notice directed to the claimants requiring them to appear before the presiding judge in chambers at such time and place as may be designated in the notice and state the nature and particulars of their claims and either to maintain or relinquish them.
Notice
(2) Unless the court gives special leave ex parte to the contrary, there must be at least 11 days between the service of such notice and the day named in the notice for appearing in accordance therewith. R. 415.
Claimant defaulting
416 If a claimant having been served with such notice does not appear, or fails to satisfy the court by affidavit filed of the merits of his claim (unless the court for special reason shall dispense with an affidavit) or fails to comply with any order made, the court may make an order declaring him and all persons claiming under him forever barred against the applicant and persons claiming under him. R. 416.
Summary disposal, Issue
417 If the claimants appear, the court may dispose of the matters in issue in a summary manner, or order, either that any claimant be made a defendant in any action already commenced in respect to the subject matter in dispute in lieu of or in addition to the applicant, or that an issue between the claimants be stated and tried, and in the latter case may direct which of the claimants shall be plaintiff and which defendant, as also the time and place for the trial of such issue. R. 417.
Question of law
418 When the question is one of law, and the facts are not in dispute, the court may decide the question without directing the trial of an issue, or may order that a special case be stated for the opinion of the court. R. 418.
Appeal decision otherwise final
419 An appeal to the Court of Appeal shall lie from any order, decision or judgment of the court in any proceeding under this part whether in a summary way under Rule 417 or by decision upon a question of law under Rule 418, or after trial of an issue to the same extent and subject to the same incidents as an appeal from any order, decision or judgment in any action, but subject to such appeal the decision of the court shall be final and conclusive, against the claimants and all persons claiming under them. R. 419.
Discovery, owers of court, Costs
420 The rules of court in respect to discovery and inspection and the rules respecting the admission of facts and documents shall apply mutatis mutandis to proceedings under this part, and the court may make all such orders as are necessary respecting the satisfaction or payment of any lien or charge of the applicant in respect of the subject matter of the application, and the court trying such issue or disposing of the matter in a summary way or upon a point of law, may finally dispose of the whole matter of the interpleader proceedings, including all costs not otherwise disposed of. R. 420.
Sheriff’s interpleader, application for
421(1) Where a claim is made to or in respect of any property taken in execution by a sheriff or which any sheriff has seized or repossessed under or by virtue of any chattel mortgage or other document creating any charge upon goods and chattels or giving a right to repossess the same, or to the proceeds of any such property, it shall be in writing, and in such notice of claim the claimant shall give an address for service.
Execution creditor to be notified
(2) Upon receipt of such claim the sheriff forthwith shall give, by registered mail, notice in writing thereof to the execution creditor, or if the seizure or repossession shall have been by extrajudicial process, to the party authorizing such seizure or repossession according to Form 45 as the case may require or to like effect, and the execution creditor or the person authorizing such seizure or repossession, shall within 14 days after the mailing of such notice give notice in writing to the sheriff that he admits or disputes the claim according to Form 46 as the case may be, or to like effect. If the execution creditor or person authorizing such seizure or repossession admits the title of the claimant and gives notice as directed by this rule, he shall only be liable to the sheriff for any fees and expenses incurred prior to the receipt of the notice admitting the claim.
Claimant may be examined for discovery
(3)(a) Any claimant to goods seized or taken into possession by the sheriff, shall, after giving the notice as aforesaid, be deemed a party to the proceedings and may be examined for discovery on his claim as given and all the provisions of Part Twenty-one shall mutatis mutandis apply to such examination;
Corporation as claimant
(b) if such claimant is a corporation the rules for the examination for discovery applicable in an action shall, mutatis mutandis, apply to examinations under this part;
Notice of examination
(c) if the claimant has given notice of his claim by a solicitor such solicitor shall be entitled to notice of any examination under the provisions of this rule and service of the appointment accompanied by the proper conduct money upon such solicitor shall be deemed sufficient service within the provisions of Rule 228;
Claim barred by default
(d) any claimant duly served with an appointment for examination for discovery or with an appointment and subpoena, as the case may be, and having received or being tendered the proper conduct money, who neglects or refuses to attend at the proper time and place appointed for his examination, or having attended refuses to be sworn, or to answer any lawful question put to him by any party entitled to do so, or his counsel or solicitor, shall be liable to have his claim barred.
Costs of
(4) The costs of an examination under this rule shall be borne by the party who examines.
Time may be extended
(5) If for any good reason such examination cannot be completed within 14 days from the mailing to the execution creditor or the person authorizing seizure or repossession, of the notice from the sheriff, the court may on an ex parte application grant to the execution creditor or person authorizing seizure or repossession an extension of time for giving notice to the sheriff of his admission of the claim or dispute thereof. R. 421. Amend. Gaz. Dec. 13, 2002.
Execution creditor admitting claim
422 Where the execution creditor or other person authorizing such seizure or repossession, has given notice to the sheriff that he admits the claim of the claimant the sheriff shall thereupon withdraw from possession. R. 422.
Creditor not admitting or disputing
423(1) Where the execution creditor or the person authorizing seizure or repossession does not in due time admit or dispute the title of the claimant to the property in question and the claimant does not withdraw his claim thereto by notice in writing to the sheriff and no order has been made under Subrule 421(5), the sheriff may apply for an interpleader order and service of the notice of motion may be effected upon all parties interested personally or by registered mail.
(2) Should the claimant withdraw his claim, or the execution creditor or person authorizing seizure or repossession, admit the title of the claimant by notice in writing to the sheriff prior to the return of the notice of motion, and at the same time give notice of such withdrawal or admission to the other party, the court may in and for the purposes of the interpleader proceedings make all such orders as to costs and otherwise as may be just. R. 423.
One application only
424 In case a sheriff has more than one execution against the same property he shall not make a separate application in each case, but he may make one application and may make all execution creditors who have not admitted the claim of the claimants, and claimants, parties. R. 424.
(The next rule is Rule 426)
Delivery of property to claimant pending adjudication, Sale of perishable goods
426(1) Pending the adjudication of a claim the sheriff may upon sufficient security being given to him by bond or otherwise for the delivery to him of the property so taken or the value thereof when demanded, permit the claimant to retain possession of the same until there shall be final adjudication in respect thereof; but in every such case the sheriff or other officer may at any time resume the actual and absolute possession and custody of the said property notwithstanding such bond or security. Horses, cattle, sheep, or any perishable goods, the subject of interpleader, may at the request of either party and upon his furnishing sufficient security or by order of the court be sold by the seizing officer at public auction to the highest bidder upon such terms as to notice and otherwise as the court may direct. 1981. Am. Gaz. Oct. 25/91.
Property claimed exempt
(2) If the debtor, from whom the property has been seized in execution or in attachment, claims that the seized property is exempt by virtue of The Exemptions Act, the court may order the release of that property to the debtor, pending determination of the issue of exemption, upon such terms and conditions as the court may direct. R. 426. Gaz. Oct. 25 91. New.
Order for sale of goods
427 Where goods or chattels have been seized in execution or in attachment by a sheriff, and any claimant alleges that he is entitled, under a bill of sale or otherwise, to the goods or chattels by way of security for debt, the court may order a sale, and direct the application of the proceeds of the sale in discharge of the amount due the claimant if it is not disputed, or that sufficient to answer the claim be paid into court pending trial of the claim. R. 427.