In Halsbury’s Laws of England, 3rd Edn., 92, (Lord Simons) at p. 386 under heading “Duration of appointment by court”, the following statement occurs:
“When a receiver is appointed for a limited time, as in the case of interim orders, his office determines on the expiration of that time without any further order of the court, and if the appointment is ‘until judgment or further order’ it is brought to an end by the judgment in the action. The judgment may provide for the continuance of the receiver but this is regarded as a new appointment. If a further order of the court though silent as to the receivership, is inconsistent with continuance of the receiver, it may operate as a discharge.”
When a receiver has been appointed on an interlocutory application without any limit of time, it is not necessary to provide for the continuance of his appointment in the final judgment.
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ADVERTISEMENTS:
The silence of the judgment does not operate as a discharge of the receiver or determination of his powers. So also the appointment of a receiver generally by the judgment in an administrative action need not be continued by the order on further consideration.
In Kerr on Receivers, 12th Edn., Chapter XII under the heading “Discharge of a Receiver”, the legal position is explained thus:
The appointment of a receiver made previously to the judgment in an action will not be superseded by it unless the receiver is appointed only until judgment or further order.”
ADVERTISEMENTS:
Neither Section 51 (d) nor Order 40 of the Code of Civil Procedure prescribed for the termination of the office of receivers. Their Lordships of the Supreme Court in Hira Lai Patnl v. Loonkaran Sethiya, (A.I.R. 1962 Supreme Court, 21) stated the law thus:
(1) If a receiver is appointed in a suit until judgment, the appointment is brought to an end by the judgment in the action.
(2) If a receiver is appointed in a suit, without his tenure being expressly defined, he will continue to be receiver till he is discharged.
(3) But, after the final disposal of the suit as between the parties to the litigation the receiver’s functions are terminated, he would still be answerable to the court as its officer till he is finally discharged.
ADVERTISEMENTS:
(4) The court has ample power to continue the receiver even after the final decree if the exigencies of the case so require.