Part 51 – Appointment of Receiver
- tocCivil Procedure Rules
|Contents of this Part|
|Scope of this Part||Rule 51.1|
|Application for appointment of receiver and injunction||Rule 51.2|
|Conditions for appointment of receiver||Rule 51.3|
|Giving of security by receiver||Rule 51.4|
|Remuneration of receiver||Rule 51.5|
|Receiver’s powers||Rule 51.6|
|Accounts of receiver||Rule 51.7|
|Payment of balance into court||Rule 51.8|
|Default by receiver||Rule 51.9|
- 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
- An application for the appointment of a receiver must be supported by evidence on affidavit.
- 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.
- 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
- In deciding whether to appoint a receiver to recover a judgment debt the court must have regard to the –
- amount likely to be obtained by the receiver;
- amount of the judgment debt; and
- probable cost of appointing and remunerating the receiver.
Giving of security by receiver
- The general rule is that a person may not be appointed receiver until that person has given security.
- The court may however dispense with security.
- The order appointing the receiver must state the amount of the security.
- The security must be by guarantee unless the court allows some other form of security.
- The guarantee or other security must be filed at the court.
- The receiver may be allowed such remuneration as the court directs.
- A receiver’s powers operate to the exclusion of the powers of the judgment debtor for the duration of the receiver’s appointment.
- The order appointing a receiver must direct on what dates the receiver must file accounts.
- Unless the court orders otherwise the account must be verified by affidavit.
- The receiver must serve a copy of the account on the applicant.
- The applicant must obtain an appointment to pass the account.
- The passing of the account must be verified by a registrar.
- 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.
- This rule applies if the receiver fails to –
- attend for the passing of any account;
- pay into court any balance shown on the account as due from the receiver; or
- submit an account by the date ordered.
- The applicant must ask the court office to fix a hearing for the receiver to show cause for the receiver’s failure.
- The court office must issue a notice stating the date, time and place of the hearing to show cause.
- The applicant must serve the notice on the receiver at least 7 days before the hearing.
- At the hearing the court may do any of the following –
- give directions to remedy the default;
- give directions for the discharge of the receiver;
- appoint another receiver;
- disallow any remuneration claimed by the receiver;
- order the receiver to –
- pay the costs of the applicant as assessed by the court; and
- pay interest at the statutory rate on any monies which may appear from a subsequent account to be due from the receiver.