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    Saturday, 4 April 2015

    Receiver, its appointment and Duties

    1. Introduction
    Provisions have been provided about receiver not only in Transfer of Property act, but in Civil Procedure Code. Comparative study of such provisions reveals that receiver, who is appointed under Transfer of Property Act, is a special receiver, and he is appointed for a particular purpose. However, such receiver does not have that status, which has been described for receiver under Civil Procedure Code. Even such receiver does not have those powers, which have been described in Civil Procedure Code.

    2. Appointment of Receiver
    Under Transfer of Property Act, following points are important for explanation of appointment of receiver;

    (i) Who can Appoint Receiver?
    Following can appoint receiver of income of mortgaged-property;

    (a) Appointment of receiver by Mortgagee
    Mortgagee, who has power to sell mortgaged-property without intervention of court on default of payment of mortgage-money, can appoint receiver.

    (b) Appointment of Receiver By Court
    Court can also appoint receiver.

    (ii) Who can be appointed as Receiver?
    Following persons can be appointed as receiver;

    (a) Any Person, who has been named in Mortgage-deed
    Mortgagee can appoint any person as receiver when such person has been named in mortgage-deed and is willing and able to act as receiver.

    (b) Any person to whose Appointment Mortgagor Agrees
    If no person has been named in mortgage-deed or if all persons, who have been named in mortgage-deed, are unable or unwilling to act or are dead, mortgagee can appoint any person to whose appointment mortgagor agree.

    (c) Any Person Appointment through Court
    If mortgagor does not agree to appointment of any person as receiver by mortgagee, mortgagee is entitled to apply to court of appointment of receiver. And any person, who is appointed by court, is deemed to have duly appointed by mortgagee.


    3. Duties of Receiver
    Followings are duties of receiver;

    (i) Administration of Mortgaged-property
    Duty of receiver is to administer mortgaged-property.

    (ii) Collections From mortgaged-property
    It is duty of receiver to make collections from mortgaged-property amicably or though suit.

    (iii) Insurance of Mortgaged-property
    Receiver is to insure mortgaged-property especially when mortgagee gives written requisition.

    (iv) Use of Money
    Receiver is to use all the money, which he receives in following manner;
    (i)                  Payment of cost of collections
    (ii)                Payment of rents, taxes and land revenue
    (iii)               Payment of charges, receiver’s own commission and insurance premium
    (iv)              Payment of interest
    (v)                Payment of principal amount of mortgage
    (vi)              Payment to entitled person

    4. Conclusion

    To conclude, it can be stated that receiver is considered agent of mortgagor, and mortgagor is responsible for acts and defaults of receiver particularly when receiver’s acts and defaults are not caused through mortgagee’s improper intervention.
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