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Name-Saif Ali Class - B.A LLB (8 Semester) Topic - Appointment of Reciever ROLL NO. - 43

This document provides information about Saif Ali, a student pursuing an LLB degree. It discusses the topic of their class project, which is the appointment of receivers. It then provides definitions and explanations of receivers, including when courts can appoint receivers and for what purposes. Receivers are impartial parties appointed by courts to preserve disputed property until litigation is resolved. Their role is to collect rents or profits from the property and manage it for the benefit of all parties until a final decree is issued.

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Saif Ali
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90 views

Name-Saif Ali Class - B.A LLB (8 Semester) Topic - Appointment of Reciever ROLL NO. - 43

This document provides information about Saif Ali, a student pursuing an LLB degree. It discusses the topic of their class project, which is the appointment of receivers. It then provides definitions and explanations of receivers, including when courts can appoint receivers and for what purposes. Receivers are impartial parties appointed by courts to preserve disputed property until litigation is resolved. Their role is to collect rents or profits from the property and manage it for the benefit of all parties until a final decree is issued.

Uploaded by

Saif Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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NAME- SAIF ALI

CLASS- B.A LLB(8TH SEMESTER)

TOPIC- APPOINTMENT OF RECIEVER

ROLL NO.- 43
ACKNOWLEDGEMENT

I am are over helmed in all humbleness and gratefulness to acknowledge my depth to all
those who have helped me to put these ideas, well above the level of simplicity and into
something concrete.
I would like to express my special thanks of gratitude to my Professor EAKRAM SIR as
well as our principal S.Z Amaani who gave me the golden opportunity to do this wonderful
project on the topic "GROUNDS FOR REVIEW" , which also helped me in doing a lot of
Research and i came to know about so many new things. I am really thankful to them.
Any attempt at any level can 't be satifactorily completed without the support and guidance of
MY parents and friends.
I would like to thank my parents who helped me a lot in gathering different information,
collecting data and guiding me from time to time in making this project , despite of their busy
schedules ,they gave me different ideas in making this project unique.
Thanking you,
Saif Ali
B.A. LL.B(8TH semester)
INTRODUCTION
The court may appoint a receiver in a variety of circumstances. A Court will never appoint a
receiver merely on the ground that it will do no harm. A Court will not act on possible danger
only; the danger must be great and imminent demanding immediate relief. The Court, on the
application of a receiver, looks to the conduct of the party who makes the application and will
usually refuse to interfere unless his conduct has been free from blame. He must come to
Court with clean hands and should not have disentitled himself to the equitable relief by
laches, delay, acquiescence etc. The Court has to appoint a Receiver only when it is found
that such an appointment is just and convenient to do so. The receiver is an officer of the
court in all cases. The receiver must act fairly and impartially. It is not possible to give a
detailed description of what a court appointed receiver does because of the many different
circumstances for which they may be appointed. A receiver may be instructed by the court to
manage a business, to collect rents, to sell assets or just ensure that property is preserved
pending resolution of a dispute. The receiver may apply to the court for directions at any time
for his/her duties. The court will generally grant remuneration to the receiver that is
reasonable and proportionate after taking into account. The court may order the receiver to
prepare and serve accounts.

Meaning and Definition of Reciever 

       The term is not defined in the Civil Procedure Code, 1908. Dictionary meaning of a
Reciever is a person who gets or accepts something that has been sent or given to them. In
legal language, "A receiver is an impartial person who is appointed by the court to collect and
receive the rents, profits of land during the pendency of proceedings when it does not seem
reasonable to the court that either party should hold it."

The word ‘Receiver’ has been defined by Kerr as follows:- “A receiver in an action is an


impartial person appointed by the Court to collect and receive, pending the proceedings, the
rents, issues and profits of land, or personal estate, which it does not seem reasonable to the
Court that cither party should collect or receive, or for enabling the same to be distributed
among the persons entitled.
Receiver under the civil procedure code
Under order 40 of CPC, The Receiver is an independent and impartial person who is
appointed by the court to administer/manage, that is, to protect and preserve a disputed
property involved in a suit.

For example, in a dispute between A and B for an immovable property, if the court thinks
that it is in the best interest of both the parties that possession should be taken from B and
given to an independent person, the court may appoint a receiver who can manage the
property till the time the suit is being decided. Such a receiver appointed by the court would
be responsible for the maintenance of the property. He can collect the income accruing like
rent or any other profits and utilize it to maintain the property. After deducting the expenses
incurred in maintenance from the income received from the property, the receiver will have
to submit the remaining income, if any, in the court.

He is not representative of either of the parties in the action, is uniformly regarded as an


officer of the court working in the interest of neither plaintiff nor defendant but for the
common benefit of all the parties.
Purpose of the appointment of a receiver
When a party in possession of the disputed property exhausts the property or causes
irreparable damages to it, the whole object of the suit gets defeated because the subject matter
ceases to exist or its value gets affected. Therefore, when the court is of the opinion that the
property in dispute must not go to either of the parties, pendente lite, the court appoints a
receiver who is entrusted with the protection and preservation of such property. It is a form of
interim protection which the court provides to the parties who makes the application till the
time the court adjudicates the matter.

Role of a receiver
The Receiver is regarded as an officer of the court and is the extended arm and hand of the
court. He is entrusted with the responsibility to receive disputed property or money given by
the court and manage such property or money till the time a decree is passed or the parties
have compromised or any other period as the court deems fit. The property or fund entrusted
to the receiver is considered to be custodia legis i.e. in the custody of the law. The Receiver
has no power other than those entrusted to him by the court while appointing him.

Who can appoint a receiver?


According to the civil procedure code, the court before which the proceedings are pending
can appoint a receiver if it appears just and convenient to the court to appoint such receiver
[section 51(d)]. It is within the discretionary power of the court to appoint the receiver. For
example, in a suit, the trial court can appoint a receiver. Whereas, in appeal, the appellate
court can appoint a receiver.  

However, the discretion is not absolute, arbitrary or unregulated. The expression “just and
convenient” does not mean the appointment is based on the whims and wishes of the judge on
any grounds which stand against equity.

Two classes of receivers can be appointed by Courts:-


Two classes of receivers can be appointed by Courts, viz., (a) under the statutes and (b) under
the Civil Procedure Code, the Specific Relief Act and the Original Side Rules of the High
Court. See. Krishnaswamy Chetty’s case (supra).

Appointment of receiver by Court under statutes:-


Several statutes in India like the Provincial Insolvency Act (5 of 1920) (Sections 20, 57, 59
and 68), the Presidency Towns Insolvency Act (3 of 1909) (Section 16) the Transfer of
Property Act (4 of 1882) (Section 69-A), the Trustees’ and Mortgagees’ Powers Act (28 of
1866) (Sections 12 to 19) and the Indian Companies Act (7 of 1913) (Sections 118, 119, 129
and 277E) authorise Courts for appointing receivers under the particular circumstances set
out therein. …”
Appointment of receiver by Court under the Civil Procedure Code,
the Specific Relief Act and the Original Side Rules of the High
Court:-
The second class of Receivers arc included in these in which appointment is made to preserve
the property pending litigation to decide the rights of parties. The powers to appoint a
Receiver in such cases are comprised in the Civil Procedure Code of 1908 (Sections 51, 94
and Order 40), the Specific Relief Act of 1877 (Section 44), and the Original Side Rules of
High Courts relating to Receivers.”

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