Definition
A neutral person appointed by the court to take custody and manage property that is the subject matter of litigation — preserving the property during the pendency of the suit and preventing its dissipation or deterioration.
A receiver under Order XL of the CPC is appointed by the court when: (a) it appears necessary for the conservation of the disputed property; (b) there is a danger of the property being dissipated, wasted, or destroyed during the pendency of the suit; or (c) neither party can be trusted with the management of the property during litigation. The receiver is an officer of the court — they manage the property in the court's name, can collect rents and profits, and must account to the court. The receiver's appointment supersedes the parties' rights of possession — neither party can deal with the property without the court's permission.
Statutory Definition
Order XL Rule 1, Code of Civil Procedure, 1908: 'Where it appears to the Court to be just and convenient, the Court may by order — (a) appoint a receiver of any property, whether before or after decree; (b) remove any person from the possession or custody of the property; (c) commit the same to the possession, custody or management of the receiver; and (d) confer upon the receiver all such powers, as to bringing and defending suits and for the realisation, 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.'
Etymology & Origin
From Old French 'receivour' (one who receives) from 'recevoir' (to receive, from Latin 'recipere'). A 'receiver' is literally one who 'receives' — the court delegates to the receiver the receipt and management of the disputed property, replacing the parties' control with the receiver's neutral stewardship.
Full Legal Analysis
Receiver: The Court’s Neutral Property Manager
When parties to a property dispute cannot agree on management during litigation, and when leaving either party in control is dangerous to the property’s preservation, the court appoints a neutral receiver. The receiver takes the place of both parties — in possession of the property, managing it on the court’s behalf, accountable to the court for every rupee received and spent. The appointment of a receiver is a significant step — it effectively dispossesses both parties and places the property under judicial administration.
When Receivers Are Appointed
(a) Company in distress: Where a company's assets are at risk of dissipation by its management during pending litigation — a receiver may be appointed to manage the company pending resolution of the dispute. (b) Partnership disputes: Where partners cannot agree on management during dissolution proceedings — a receiver manages the partnership business. (c) Mortgage disputes: Where a mortgagee applies for appointment of a receiver of mortgaged property when the mortgagor is in default and the property is at risk. (d) Estate disputes: Where heirs dispute property and one heir's management is detrimental to the estate — a receiver may manage the estate pending probate.
Receiver’s Obligations and Powers
The receiver must: (a) give security (unless the court specifically dispenses with this) for proper performance of duties; (b) maintain accounts and submit them to the court at specified intervals; (c) maintain the property in good condition; (d) pay all outgoings (rates, taxes, maintenance); and (e) collect all rents and income. The receiver has the powers specified in the court's order — typically including the power to sue for arrears of rent, to manage the property, and to pay expenses from the income. Personal liability attaches to a receiver who acts outside their powers.
“A receiver is the court in charge of property. When neither party can be trusted with possession during litigation, the court extends its own hand through the receiver — neutral, accountable, and subject to the court’s supervision. The property is safe until the litigation concludes.”
This Term in Indian Statutes
Code of Civil Procedure, 1908, 1908
"Where it appears to the Court to be just and convenient, the Court may by order appoint a receiver of any property, whether before or after decree."
Receiver: court-appointed neutral manager of disputed property — supersedes parties' possession rights
