Order 40 Rule 2 CPC - Remuneration of a Receiver
Order XL Rule 2 of the Code of Civil Procedure, 1908 (CPC) empowers a civil court to determine the remuneration payable to a receiver appointed to manage or protect property during litigation.
Text of Order XL Rule 2 - Remuneration
“The Court may by general or special order fix the amount to be paid as remuneration for the services of the receiver.”
The rule forms part of Order XL (Appointment of Receivers) in the First Schedule to the CPC. “Order XL” and “Order 40” refer to the same order.
Meaning and scope of Rule 2
A receiver is a person appointed by a court to take custody, manage, preserve or otherwise deal with property as directed by the court. The receiver acts under the court's supervision rather than as an independent owner of the property.
Remuneration means payment for the receiver's services. Rule 2 gives the court discretion to fix that payment by a general or special order. The central provision does not prescribe a uniform percentage, fixed fee or automatic entitlement to any particular amount.
How the court determines remuneration
In exercising its discretion, a court may consider the nature and extent of the property, the responsibilities entrusted to the receiver, the time and work involved, the complexity of management and the applicable court rules or directions. These are practical considerations, not a statutory formula laid down in Rule 2.
The court's order should be consulted to establish the actual fee, the basis of calculation, the timing of payment and the source from which it is to be paid. Applicable High Court rules and local amendments may also affect the procedure.
Related provisions under Order XL CPC
Rule 1 - Appointment of receivers
Where it appears just and convenient, the court may appoint a receiver before or after a decree and confer appropriate powers concerning the custody, management, preservation and realization of property, subject to the limitations in the rule.
Rule 3 - Duties of a receiver
A receiver must furnish security if required, submit accounts in the form and at the intervals directed by the court, pay amounts due as directed and answer for loss caused by wilful default or gross negligence.
Rule 4 - Enforcement of duties
Where a receiver fails to account, fails to pay amounts due or causes loss through wilful default or gross negligence, the court may take enforcement measures prescribed by the rule, including attachment and sale of the receiver's property.
Rule 5 - Appointment of Collector
In specified cases involving revenue-paying land, the court may appoint the Collector as receiver with the Collector's consent where it considers that course beneficial to the persons concerned.
Frequently asked questions
Who fixes a receiver's remuneration?
The court fixes the amount under Order XL Rule 2 CPC, through a general or special order.
Does the CPC prescribe a fixed rate for receivers?
No. Order XL Rule 2 itself does not prescribe a nationwide fixed rate. The applicable judicial order and relevant court rules must be checked.
Can a receiver set their own fees?
A receiver cannot rely on Rule 2 to unilaterally determine remuneration; the court controls the amount payable under that provision.
Official legal sources
Read the Code of Civil Procedure, 1908 on India Code and the official CPC text (PDF). For a particular case, check the applicable High Court rules, amendments and the receiver's appointment and remuneration orders.
This article explains the central CPC provision and is general legal information, not case-specific legal advice.