Duties
Full Text
Every receiver so appointed shall—
(a) furnish such security (if any) as the Court thinks fit, duly to account for what he shall receive in respect of the property;
(b) submit his accounts at such periods and in such form as the Court directs;
(c) pay the amount due from him as the Court directs; and
(d) be responsible for any loss occasioned to the property by his wilful default or gross negligence.
Plain English Summary
Defines the four statutory fiduciary duties of a receiver: furnishing accounts security, periodical submission of verified accounts, paying surplus balances into court, and personal liability for loss caused by wilful default or gross negligence.
Key Legal Elements
- Fiduciary Capacity: Receiver is a fiduciary trustee bound by the standard of a prudent owner.
- Security Requirement (Clause a): Obligatory bond with sureties to secure honesty in property collections.
- Periodic Accounting (Clause b): Strict duty to lodge audited accounts and vouchers in court at stated intervals.
- Payment of Surplus (Clause c): Duty to deposit balances into the court registry or bank deposit as directed.
- Standard of Personal Liability (Clause d): Not liable for ordinary commercial risk or bonafide operational losses; strictly liable for 'wilful default' or 'gross negligence'.
Practical Note
Fiduciary Standard of Care & Scrutiny of Accounts: 1. Fiduciary Standard: The receiver must manage the property as a person of ordinary prudence would manage his own estate. Under clause (d), he is protected against honest errors of business judgment, but becomes personally surchargeable if he fails to collect rents, allows tenants to default without legal action, or misappropriates funds through gross negligence. 2. Scrutiny by Parties: The accounts submitted under clause (b) are placed on the court record with notice to all parties to the suit, who are entitled to inspect vouchers and file objections (surcharge and falsify) before the accounts are judicially passed.
हिंदी पाठ
इस प्रकार नियुक्त प्रत्येक रिसीवर—
(क) संपत्ति के संबंध में जो कुछ वह प्राप्त करेगा उसका सम्यक हिसाब देने के लिए ऐसी प्रतिभूति (Security) देगा (यदि कोई हो) जैसी न्यायालय ठीक समझे;
(ख) ऐसी अवधियों पर और ऐसे प्ररूप में अपने लेखे (Accounts) प्रस्तुत करेगा जैसा न्यायालय निदेश दे;
(ग) अपने प्रति शोध्य राशि का संदाय वैसे करेगा जैसा न्यायालय निदेश दे; तथा
(घ) अपने जानबूझकर किए गए व्यतिक्रम (Wilful default) या घोर उपेक्षा (Gross negligence) द्वारा संपत्ति को हुई किसी भी हानि के लिए उत्तरदायी होगा।