Receiver (court-appointed) is an impartial person appointed by the court to take possession of, manage, protect, and preserve property that is the subject of a legal dispute, when neither party can be entrusted with its custody during the pendency of the proceedings. Under Indian law, the appointment of a receiver is governed by Order XL of the Code of Civil Procedure, 1908, read with Section 94(d), which empowers the court to appoint a receiver and enforce the duties of the receiver.
Legal definition
Order XL Rule 1 of the Code of Civil Procedure, 1908 provides:
Order XL Rule 1 — Appointment of receivers: 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 realization, 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.
Rule 2 requires the receiver to furnish security determined by the court. Rule 3 makes the receiver subject to the orders of the court that appointed it, and provides that the receiver's remuneration shall be fixed by the court.
How courts have interpreted this term
Balakrishnan Gupta v. Swadeshi Polytex Ltd. [AIR 1985 SC 520]
The Supreme Court held that a receiver functions under the court's direct supervision and control. The receiver is an officer of the court and has no independent authority — all actions must be within the scope of the order of appointment. The Court emphasised that appointment of a receiver is a drastic remedy and should be exercised only when the court is satisfied that no other remedy will effectively protect the property.
Maharaj Jagat Singh v. Lt. Col. Sawai Bhawani Singh [AIR 1993 SC 1721]
The Supreme Court held that a receiver is an impartial person appointed by the court to oversee the property in dispute, particularly when neither party should have exclusive control over it during the litigation. The Court laid down that the appointment must be based on the twin requirements of justice and convenience.
Industrial Credit & Investment Corporation v. Karnataka Ball Bearing Corporation [(1999)]
The Court held that in extreme cases, a receiver can be given the power to sell the property for which it has been appointed. However, this is a residuary power exercised only when the court is satisfied that the sale is necessary for the preservation of the property or the interests of the parties.
Why this matters
The appointment of a receiver is one of the most powerful interlocutory remedies in Indian civil litigation. Unlike a temporary injunction, which merely restrains a party from acting, a receiver physically takes possession of the disputed property and manages it under the court's supervision. This makes the receiver remedy particularly important in cases involving wasting assets, properties at risk of deterioration, or situations where both parties are unable to manage the property responsibly.
For practitioners, applying for a receiver appointment requires demonstrating that the remedy is "just and convenient" — a flexible standard that gives the court wide discretion. However, courts exercise this power sparingly because it displaces the existing possessor and creates ongoing administrative responsibilities. The applicant must typically show a prima facie case, danger to the property, and that no lesser remedy (such as an injunction) would be adequate.
A receiver holds the property as an officer of the court, not as an agent of either party. This means that the receiver's possession is the court's possession, and any interference with the receiver's duties constitutes contempt of court. The receiver must account to the court for all income and expenditure relating to the property.
Related terms
Related interlocutory remedies:
Broader concepts:
Frequently asked questions
When can a receiver be appointed?
A receiver can be appointed before or after a decree, whenever the court considers it "just and convenient." Courts typically appoint receivers when the disputed property is at risk of waste, damage, or alienation, and when no lesser remedy such as an injunction would be adequate. The applicant must demonstrate a prima facie case and the existence of danger or emergency relating to the property.
Can a receiver sell the property?
Yes, but only in exceptional circumstances and only if the court specifically authorises the sale. The power to sell is a residuary power granted only when the court is satisfied that the sale is necessary for the preservation or benefit of the property or the parties. The sale must be conducted under the court's supervision.
Who bears the cost of the receiver?
The receiver's remuneration and expenses are fixed and approved by the court under Order XL Rule 3. These costs are typically borne by the estate (i.e., from the income or proceeds of the property under receivership) and form a first charge on the property. In some cases, the court may direct a specific party to bear the costs.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.