Appointment Of The Receiver
Under order XL, the concept of receiver is discussed. The goal of appointing
a receiver is to ensure that the property in question is protected. The court
appoints an unbiased person with the objective of safeguarding the suit property
until the case is finally settled. During the course of the proceedings, the
appointed receiver has the authority to receive and accept the property's
revenues and earnings. He acts as a court agent.
Rule 1 talks about Appointment of the receiver. The scenario must be fair and
practical. He can be appointed to any property where there is a dispute. He
might be authorized either before/after the decree is formulated. The court has
the authority to issue an order suspending any individual from custody or
possession of property and entrusting it to the custody, control, possession or
supervision of the receiver.
Rule 2 talks about the remuneration of the receiver. The Court can set the
amount of money that is to be paid as salary/remuneration for the services
rendered by him through a general/specific order. The receiver needs the court's
consent to enforce few powers such as for bringing and defending lawsuits for
the purpose of realising, for managing, protecting, preserving, and improving
the property, for collecting rents and revenues, for applying and disposing of
such rents and revenues, and for executing documents himself as the landlord.
Rule 3 talks about the duties of the appointed receiver. He must offer security
to answer for what he will receive in relation to that of a property, and he
must present his accounts at the times and in the form that the court specifies.
He must pay the sum owed to him as directed by the court, and he will be held
liable for any damage caused to the property as a result of his deliberate
failure or gross ignorance.
Rule 4 talks about the actions that would be taken against receiver for
non-performance of his duties. If the appointed receiver fails to present his
accounts or pay the sum due from him, or causes any damage caused to the
property as a result of his deliberate failure or gross ignorance, the court may
order for the attachment of the receiver's property, as well as the
sale/disposal of his so attached property. The proceeds from the sale could be
used to make up for the loss incurred by him. If there is a balance, it will be
paid back to the receiver.
Rule 5 talks about the court appointing a receiver with the consent of the
collector. When the property is land that pays revenue for the state or land for
which the income has been allotted or revived, and the court believes that the
collector's management will best serve the interests of those affected, the
court may appoint receiver with the collector's consent.
Lastly, there are some important points that need to considered. One of the
modes of decree execution is appointing a receiver. Equitable execution, also
known as appointment execution, is a court's discretion that cannot be regarded
as a right. The mode court, on the other hand, cannot deny the judgment holder
if he wishes it.
The court must be convinced that the appointing receiver is in the best
interests of both the parties. The judgment holder cannot ask for the appointing
receiver in the case of property that is not subject to attachment. A receiver
may indeed be appointed well before the property is attached and even if the
property is located beyond the court's territorial limits.
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