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S.S. JAIN SUBODH LAW COLLEGE

MANSAROVAR, JAIPUR

For Justice And Peace

SUBJECT- DRAFTING, PLEADING & CONVEYANCING

TOPIC: An application seeking the appointment of a receiver.

SUBMITTED TO: SUBMITTED BY:

Mr ABHAY SINGHAL MEGHA SINGH RATHORE

ASSISTANT PPROFESSOR B.A. L.L.B. STUDENT
(DRAFTING, PLEADING & CONVEYANCING) 10thSEM ( SECTION A )
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ACKNOWLEDGEMENT

The success and outcome of this project required a lot of guidance and assistance from many
people, and I am extremely fortunate to have got it all along with the completion of my
assignment work. I respectfully thank Out Principal Dr. Gaurav Kataria for giving me this
opportunity to do this assignment work. I am extremely thankful to Mr. Abhay Singhal for
Providing me with all support and guidance which made me complete the assignment on time. I
hope the project will be knowledgeable and helpful in the future.

Thank You
Megha Singh Rathore
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DECLARATION

I hereby declare the project work entitled “Appointment of a receiver” submitted to S.S. JAIN
SUBODH LAW COLLEGE, JAIPUR is a record of an original work done by me under the guidance of
Mr. Abhay Singhal Faculty of Code of Civil Procedure and this work is submitted in the partial
fulfilment of the requirement for the award of the degree BA.LLB. The content embodied in this
has not been submitted to any other University or Institute for the award of any degree or
diploma.

MEGHA SINGH RATHORE

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CERTIFICATE

This is to certify that this project assignment of Drafting was submitted by Megha Singh Rathore
of BA. LLB. In S.S Jain Subodh college, Jaipur embodies the Bonafede work done under the
supervision Mr. Abhay Singhal.

Date :
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CONTENTS

o Introduction

o Who can appoint a receiver

o Who can be appointed as a receiver?

o Powers of the receiver

o Drafting

o Conclusion

o Bibliography
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INTRODUCTION

Who is a 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 1will 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.

What is the 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.2 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.

1
Harihar Mukherjee And Anr. vs Harnendra Nath … – Indian Kanoon.” https://indiankanoon.org/doc/1094113/.
2
Sri.D.Arumugam vs Sri.A.Balamurugan on 10 January … – Indian Kanoon.” 10 Jan. 2014,
https://indiankanoon.org/doc/27350771/.
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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.

Who can be appointed as a receiver?

A person who is independent, impartial and totally disinterested should be appointed as a
receiver. Such a person should not have any stake in the disputed property. Generally, parties to
the suit are not appointed as receiver by the court. But in extraordinary circumstances, a party
to suit can be appointed as receiver3.

Who can apply for the appointment of the receiver?

Generally, a plaintiff files the application for appointment of a receiver but defendants can also file such
application. A third party is not allowed to file the application but if he is interested in the protection and
preservation of the property, he can also make an application after taking permission from the court.

When can a receiver be appointed?

The court can appoint receiver whenever the court is of the opinion that either party should not
hold the property in dispute. The court can appoint a receiver before or after a decree and can
remove any person from the possession or custody of the property and commit the same
property in the custody or management of the receiver.
Under the code itself, the receiver can be appointed to prevent the ends of justice being
defeated. [section 94(d)]. Similarly, for the execution of a decree, the court has the power to
appoint a receiver. [section 51(d)]. There are provisions in special acts which provides for the
appointment of a receiver by the court. For example, section 84 of the Companies Act, 2013
provides for the appointment of a receiver. Similarly, section 69A of the Transfer of Property
Act, 1882 also provides for the appointment.

3
1. [Mohini v. Sarkar, AIR 1941 Cal. 144]
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Process of appointment of a receiver

The process of appointment of a receiver is provided by the courts in their respective court
rules. The high court has the power to make rules for the superintendence and control of the
subordinate courts.
For instance,
In chapter XIX of the Delhi High Court (Original Side) rules, 1967, the following process is
provided:
1. Application for appointment shall be made in writing and shall be supported by affidavit.
2. Receiver other than the official receiver has to give security.
3. The security is to be given to the satisfaction of the registrar.
4. He has to provide personal bonds with the number of surety required by the registrar.
The personal bond will be double the amount of annual rental value of the property or
the total value of the property which the receiver is going to administer.
5. Within a week of appointment, the receiver will have to submit a report providing the
details regarding the property such as inventory of property or books of account etc.
6. The registrar will give directions on where to invest the money received by the receiver
from the property. Generally, such money is submitted in scheduled banks or
government bonds.

Powers of the receiver

Under order 40 rule 1(d) powers of the receiver are provided as following:

1. Collection of rents and profits arising out of the property.

2. Application and disposal of such rents and profits.
3. Execution of documents as the owner himself.
4. To institute and defend the suit.
5. Such powers as the court may deem fit.
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DRAFITING
an application seeking appointment of receiver.
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IN THE COURT OF SENIOR DIVISION CIVIL JUDGE ,RAJASTHAN

__________ Vs __________

SUIT FOR DECLARATION , RENDITION OF ACCOUNT , PERMANENT AND

MANDATORY INJUNCTION

APPLICATION FOR APPOINTMENT OF RECEIVER U/O XL RULE 1 READ WITH

SECTION 151 CPC

Respectfully :-
1. That the matter mentioned above is pending before this Honourable Court
between the parties and fixed for today.
2. That the plaintiff alongwith defendant no. 1 to 3 are partners
in M/S ___________, the CNG station is situated at Khasra
No. ___________ Colony, ___________and its head office is situated
at ___________Rawalpindi.
3. That the applicant / plaintiff is owner and share holder in the business to the
extent of 30% and from date 13-01-2011 the respondents / defendants are not
paying any profit, share to the plaintiff and not allowing plaintiff to enter in the
suit premises for inspection and for getting benefit from the business being
share holder, therefore the plaintiff has filed above mentioned case before this
Honourable Court for declaration and rendition of accounts etc.
4. That the plaintiff has mentioned correct address of the parties but defendants
are deliberately and intentionally not joining the court proceedings and also
not accepting the legitimate demands of the present applicant / plaintiff .

5. That the plaintiff / applicant being share holder and partner of the business has
full right to get the monthly profit from the business and to get whole
information about the accounts and business, but the defendants are not
allowing the present applicant for same.
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6. That this Honourable Court has issued notices / summons to the defendants
many time but the defendants are not coming in this Honourable Court just to
deprive the applicant for his interest in the business.
7. That the applicant is filing this application for the appointment of receiver,
because the applicant has serious apprehensions that the defendants are
changing the accounts fraudulently and want to get maximum benefit from the
business and ultimately they are going to damage / destroy the whole business
after getting their interest just to deprive the plaintiff, therefore the plaintiff /
applicant has no other alternate a remedy to safe his rights in the business.
8. That this Honourable Court has full discretion and powers to appoint the
receiver with regard to the suit property for following acts.
a. To remove the persons from the possession of suit property.
b. To take the custody of suit property and management of the property.
c. To get all accounts of the business, and work for management, protection,
preservation, collection of the rents and the profits and submit these all in
this Honourable Court.
d. To collect all the Gas bills, Electricity bills, etc from January 2011 from the
defendants and produce in this Honourable Court.
e. And to do all acts which are mentioned and allow by order XL rule 1,to 4.

PRAYER:
In view of above, It is most humbly prayed that this application may kindly
be accepted and receiver may be appointed for suit property for the interest of
justice.
Any other relief which this Honourable Court may deem just and proper.

Date: Signature:
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Conclusion
Clearly, the receiver plays an important role whenever the court requires the receiver to
manage the subject matter in a suit to protect and preserve it till the time, the court decrees
the suit.

The receiver is an officer of the courts and the subject matter managed by him is considered to
be in custody of the law. The court appoints a receiver when the court is of the opinion that
neither of the party should manage the property till the time the matter is decided. Any person
can become a receiver provided they fulfil the requirements set by the court.

A receiver should be of impartial, independent and indifferent character who has no stake in the
subject matter and can manage the property just as a prudent man will do with his own
property. Court have vested certain powers and responsibilities on the receiver which he should
use to manage the property in the best way possible.

The receiver should be careful while making an important decision related to the subject matter
as he is personally liable for any damage to it. He can seek the permission of the court before
making such decisions to be safe.
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BIBLIOGRAPHY

1. Code of Civil Procedure,1908

2. Appendix F Form no-9

3. Iblogpleaders.com

4. Indian kanoon