Appointment of a Receiver
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FAQ
Yes, according to (Order 40 rule 5), a collector can be appointed as a receiver if the revenue generated from the property is received by the government, the court can appoint a collector as a receiver with his consent if the court thinks that management of such property by collector will promote the interests of those
A court appoints a receiver to protect property controlled by a person sued in a court case. The SEC typically recommends the appointment of a receiver in cases in which the SEC fears a company or an individual may dissipate or waste corporate property and assets.
The external party is called a Receiver if the role is simply to sell assets, or a Receiver and Manager if the role is extended to managing a business. The Receiver can be appointed by a Secured Creditor, usually a Bank, or the Courts.
The appointment of a Receiver is made either privately, usually by a Bank, or by the Court. A Receiver can be appointed even if the company and its directors are opposed to the appointment. In contrast, a Voluntary Administration is initiated by a director with a view to saving a business or company.
A receiver is a person appointed as custodian of a person or entity's property, finances, general assets, or business operations. Receivers can be appointed by courts, government regulators, or private entities. Receivers seek to realize and secure assets and manage affairs to pay debts.
There are many situations in which a Receiver might be appointed to an individual's assets. A secured creditor will invariably have the power under the security documents to appoint a receiver to take control of the secured assets.
However, corporate receiverships are the most common form of receivership. They usually arise when a secured creditor appoints a Receiver to a debtor that has defaulted pursuant to the terms of a loan contract. The power to appoint a Receiver is provided for in a security document such as a charge or mortgage.
A Receiver is an officer appointed by the Court who is given custody of specified assets with direction to liquidate them and distribute the proceeds. A Court order is typically required to appoint a Receiver, and the terms of the order describe the Receiver's duties and powers.