Part 51 – Appointment of Receiver

Scope of this Part

51.1

1. This Part deals with the appointment of a receiver and includes an application to appoint a receiver to obtain payment of the judgment debt from the income or capital assets of the judgment debtor.

Application for appointment of receiver and injunction

51.2

1. An application for the appointment of a receiver must be supported by evidence on affidavit.
2. The applicant may also apply for an injunction to restrain the judgment debtor or other respondent from assigning, charging or otherwise dealing with any property identified in the application.
3. If an application for an immediate injunction is made, the application for the appointment of a receiver and for an injunction may be made without notice.
   • Rules 17.3 and 17.4 deal with applications for interim injunctions.

Conditions for appointment of receiver

51.3

1. In deciding whether to appoint a receiver to recover a judgment debt the court must have regard to the –
   1. amount likely to be obtained by the receiver;
   2. amount of the judgment debt; and
   3. probable cost of appointing and remunerating the receiver.

Giving of security by receiver

51.4

1. The general rule is that a person may not be appointed receiver until that person has given security.
2. The court may however dispense with security.
3. The order appointing the receiver must state the amount of the security.
4. The security must be by guarantee unless the court allows some other form of security.
5. The guarantee or other security must be filed at the court.

Remuneration of receiver

51.5

1. The receiver may be allowed such remuneration as the court directs.

Receiver’s powers

51.6

1. A receiver’s powers operate to the exclusion of the powers of the judgment debtor for the duration of the receiver’s appointment.

Accounts of receiver

51.7

1. The order appointing a receiver must direct on what dates the receiver must file accounts.
2. Unless the court orders otherwise the account must be verified by affidavit.
3. The receiver must serve a copy of the account on the applicant.
4. The applicant must obtain an appointment to pass the account.
5. The passing of the account must be verified by a registrar.

Payment of balance into court

51.8

1. The receiver must pay into court any balance shown on the accounts under rule 51.7 as due from the receiver within 7 days of the passing of any account.

Default by receiver

51.9

1. This rule applies if the receiver fails to –
   1. attend for the passing of any account;
   2. pay into court any balance shown on the account as due from the receiver; or
   3.  submit an account by the date ordered.
2. The applicant must ask the court office to fix a hearing for the receiver to show cause for the receiver’s failure.
3. The court office must issue a notice stating the date, time and place of the hearing to show cause.
4. The applicant must serve the notice on the receiver at least 7 days before the hearing.
5. At the hearing the court may do any of the following –
   1. give directions to remedy the default;
   2. give directions for the discharge of the receiver;
   3. appoint another receiver;
   4. disallow any remuneration claimed by the receiver;
   5. order the receiver to –
      1. pay the costs of the applicant as assessed by the court; and
      2. pay interest at the statutory rate on any monies which may appear from a subsequent account to be due from the re­ceiver.