Civil Procedure Code. Order 40 Rule 1. Appointment of a Receiver in pending suit is only on a prima facie finding that the plaintiff has an excellent chance of success in the suit. Supreme Court.

Parmanand Patel v. Sudha A. Chowgule, (2009) 11 SCC 127.

Judgment Link: https://main.sci.gov.in/jonew/judis/34044.pdf

PDF Copy:

HELD: 23. A Receiver, having regard to the provisions contained in Order 40 Rule 1 of the Code of Civil Procedure, is appointed only when it is found to be just and convenient to do so. Appointment of a Receiver pending suit is a matter which is within the discretionary jurisdiction of the Court. Ordinarily the Court would not appoint a Receiver save and except on a prima facie finding that the plaintiff has an excellent chance of success in the suit.

24. It is also for the plaintiff not only to show a case of adverse and conflict claims of property but also emergency, danger or loss demanding immediate action. Element of danger is an important consideration. Ordinarily, a Receiver would not be appointed unless a case has been made out which may deprive the defendant of a de facto possession. For the said purpose, conduct of the parties would also be relevant.

Compiled by S. Basavaraj, Advocate, Daksha Legal.