Receiver

Code of Civil Procedure, 1908 — Order XL

A court-appointed officer who takes possession and management of property under dispute or subject to a decree. Under Order XL CPC, courts can appoint a receiver to manage and preserve a disputed property. In DRT proceedings, a receiver may be appointed to manage secured assets pending enforcement.

In practice, a receiver is the court's hands on a property while litigation is pending — appointed under Order XL of the Code of Civil Procedure, 1908 to take possession, collect rents, preserve value and prevent waste or dissipation. In debt-recovery matters, a creditor seeks a receiver where the secured asset is income-generating (a tenanted building, a running plant) or is at risk of being stripped before the decree is realised, so that the asset's value is protected for eventual sale. The DRT can appoint a receiver to manage secured assets pending enforcement. A receiver is an officer of the court, not the creditor's agent, and must account for what is collected. Courts grant the relief sparingly because it dispossesses the owner before adjudication, so the application must show a strong prima facie case and real danger to the property. Overreaching — seeking a receiver where attachment would suffice — invites refusal. Well-advised creditors match the relief sought to the actual risk to the asset.