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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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