Provisions Relating to Appointment Powers Duties Removal of Receiver

Provisions Relating to Appointment Powers Duties and Removal of Receiver

Question: Who is a receiver? When can a receiver be appointed?

Answer:

Receiver:

The "receiver" is a person who is an officer appointed by the court to look after the property under trial. Subject to the provisions of Section 51 of the Civil Procedure Code, 1908, if deemed appropriate and convenient, an order may be issued for the appointment of a "receiver" on the application of the Decree-holder. The court exercises this special power vested in it in issuing decrees. The order appointing the receiver is subject to the 'discretionary power' or discretion of the court.

When a receiver is appointed

In cases where it is necessary to appoint a receiver for proper management or preservation or collection or maintenance of any property, the court shall appoint a receiver as the recipient of such property if it deems fit and convenient. The receiver is appointed to protect the subject-matter of the case from any harm and to protect the rights of the parties. After considering the circumstances of the case, the court will exercise this special power to appoint the receiver on the basis of the basic principles of the law with utmost caution. The procedure for appointment of receivers is clearly instructed in sub-rule (1) of rule 1 of order no. 40 of the Civil Procedure Code, 1908. Sub-rule (1) of this rule specifically states that the court may, if it deems fit and convenient, issue an order and take the following measures, if the court deems it just and convenient:

✓appoint a receiver of any property, whether before or after decree,

✓remove any person from the possession or custody of the property,

✓commit the same to the possession, custody or management of the receiver, and

✓ confer upon the receiver all such powers, as to bringing and defending suits and for the realization, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has, or such of those powers as the Court thinks fit.

Question: Discuss the duties of a receiver under the provisions of the Code of Civil Procedure. When a receiver may be removed? Give examples.

Answer:

Duties of a receiver:

At any stage of the case, according to the Code of Civil Procedure, the court has a special need to decide the case at the request of either party or if the court itself deems it just and convenient, can appoint a receiver as per rules 1 and 2 of Order 40.

The receiver appointed by the court has certain duties and responsibilities which are mentioned in Order 40, rule. 3-5 of the Civil Procedure Code. The duties and responsibilities of a receiver are given below:

According to rule 3 of Order 40 of the Code-

A receiver so appointed shall-

(a) furnish such security (if any) as the Court thinks fit, duly to account for what he shall receive in respect of the property,

(b) submit his accounts at such periods and in such form as the Court directs,

(c) pay the amount due from him as the Court directs; and

(d) be responsible for any loss occasioned to the property by his wilful default or gross negligence.

According to rule 4 of Order 40 of the Code-

Where a receiver -

(a) fails to submit his accounts at such periods and in such form as the Court directs, or

(b) fails to pay the amount due from him as the Court directs, or

(c) occasions loss to the property by his wilful default or gross negligence, the Court may direct his property to be attached and may sell such property, and may apply the proceeds to make good any amount found to be due from him or any loss occasioned by him, and shall pay the balance (if any) to the receiver.

According to rule 5 of order 40-

Where the property is land paying revenue to the Government, or land of which the revenue has been assigned or redeemed, and the Court considers that the interest of those concerned will be promoted by the management of the Collector, the Court may, with the consent of the Collector, appoint him to be receiver of such property.

Removal of the receiver:

Court may remove or withdraw the receiver-

1. After the declaration of the judgment: Where a receiver is appointed till the declaration of the judgment, the receiver is removed with the pronouncement of the judgment.

2. Termination of duty: The appointment of the receiver is terminated as soon as the duty for which the receiver was appointed is terminated.

3. The final settlement of the case: When the case is settled finally, the receiver is removed.

4. Amicable settlement: Where there is an amicable settlement of the case, the receiver is removed.

5. Negligence of duty: The receiver can be canceled if he neglects the duty assigned to him or if he makes a deliberate mistake. It is even punishable under Rule 40 (4). Thus, a receiver can be removed for the reasons mentioned, as shown in the light of various examples. The court may withdraw the receiver by exercising its inherent jurisdiction.

The powers of the receiver:

According to rule 1(d) of Order 40, the court shall confer upon the receiver all such powers, as to bringing and defending suits and for the realization, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has, or such of those powers as the Court thinks fit.

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