[go: up one dir, main page]
Scribd
Upload
103 views2 pages

Receivership: Definition and Purpose

A receiver is a person appointed by the court to preserve and protect disputed property during litigation. A receivership is a provisional remedy where the court appoints a receiver to receive and preserve property that is the subject of a legal dispute. Receivers can be appointed when the property is in danger of being lost, removed, or damaged without protection, or when appointing a receiver is the most convenient way to preserve the property during legal proceedings.

Uploaded by

Stephanie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
103 views2 pages

Receivership: Definition and Purpose

A receiver is a person appointed by the court to preserve and protect disputed property during litigation. A receivership is a provisional remedy where the court appoints a receiver to receive and preserve property that is the subject of a legal dispute. Receivers can be appointed when the property is in danger of being lost, removed, or damaged without protection, or when appointing a receiver is the most convenient way to preserve the property during legal proceedings.

Uploaded by

Stephanie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

RECEIVERSHIP

Define Receivership

- it is a provisional remedy or ancillary remedy wherein the court appoints a receiver to receive and
preserve the property or fund in litigation pendente lite, when it does not seem reasonable to the court
that either party should hold it.

Nature Of A Receivership

1. The purpose of a receivership as a provisional remedy is to protect and preserve the rights of the
parties during the pendency of the main action. Receivership is also aimed at preservation of, and at
making more secure, existing rights. It cannot be used as an instrument for the destruction of those
rights.

2. The receivership provided in Rule 59 refers to the property, which is the subject of the action and
does not refer to the receivership authorized under the banking laws and other rules or laws. This
presupposes that there is an action and that the property subject of the action requires its preservation.

Cases When Receiver May be Appointed

Q: Who is a receiver?

A: A person appointed by the court on. Behalf of all the parties to the action for the purpose of
preserving and conserving the property in litigation and preventing its possible destruction or dissipation
if it were left in the possession of any of the parties.

Q: When may a receiver be appointed?

A: 1. When It appears from the verified application and such other proofs the court may require, that
the party applying for the appointment of a receiver has an interest in the property or fund which is the
subject of the action or proceeding and that such property or fund is in danger of being lost, removed,
or materially injured unless a receiver be appointed to administer and preserve it;

2. When it appears in an action by the mortgagee for the foreclosure of a mortgage that the property is
in danger of being wasted or dissipated or materially injured, and that its value is probably insufficient to
discharge the mortgage debt, or that the parties have so stipulated in the contract of mortgage;

3. After judgement, to preserve the property during the pendency of an appeal, or to dispose of it
according to the judgement, or to aid execution when the execution has been returned unsatisfied or
the judgement obligor refuses to apply his property in satisfaction of the judgement, or otherwise to
carry the judgement into effect;
4. Whenever in other cases it appears that the appointment of a receiver is the most convenient and
feasible means of preserving, administering or disposing of the property in litigation.

You might also like