Whether Party Receiver can be granted remuneration

In this civil revision petition, a question is raised by the petitioner that the parties to the suit who are appointed as Receivers are not entitled to claim remuneration for functioning as such: No doubt, the order appointing them as Receivers did not fix any remuneration but it is not axiomatic that a party-Receiver is not entitled to any remuneration under any circumstances.

.2. In England, a party to a proceeding appointed as receiver is not generally entitled to remuneration without the consent of the other parties. In Halsbury’s Laws of England, IV Edition, Volume 39, at page 931, the law is stated thus:

."Salary Generally Allowed: A receiver appointed by the Court is allowed such proper remuneration, if any, as the court may fix, but his right is limited to the assets and in case of deficiency cannot be enforced against the plaintiff or other parties personally. A trustee who is appointed receiver is not generally entitled to remuneration, but even a trustee-receiver, unless he is expressly appointed without salary’, may be allowed remuneration if no other person equally well qualified for the position can be found or, in the case of an administration action, if the testator has authorised the payment of remuneration. Moreover, if a trustee has no active duties to perform involving the receipt of money, there can be no valid objection to him being remunerated for his services as receiver."

.3. In Kerr on Receivers, 13th Edition, the following passages are found at pages 104 and 253 respectively:

."A party to the action will not usually be appointed receiver unless he undertakes to act without salary, though in partnership cases salary is sometimes allowed". "If a trustee, or party interested, asks leave to propose himself as receiver he will usually be required, if appointed to act without salary".

.4. Order 40, Rule 2 of the Code of Civil Procedure does not make a distinction between a party-receiver and stranger-receiver in the matter of remuneration. The rule reads as follows:

."Remuneration: The court may by general or special order fix the amount to be paid as remuneration for the services of the Receiver".

5. In the Law of Receivers by S.Venkataraman, Second Edition, at page 107 it is stated, "Where a party to the action is appointed receiver he will not usually be allowed any remuneration. But in partnership cases or in other cases where there would be a necessity to use special skill and business capacity, he is sometimes allowed remuneration". At page 241 it is stated,"When a partner is appointed receiver of the partnership estate, Courts will not generally allow him any remuneration". Similarly a trustee appointed receiver of the estate of which he is the trustee may not, in general, be allowed any remuneration. The relation of trustee and cestui que trust excludes any idea of remuneration except by express antecedent contract. A trustee appointed upon his own undertaking in a suit to act as receiver of the trust property is not under ordinary circumstances entitled to a salary as receiver. Though a general, it is not an inflexible, rule that no remuneration will be allowed to a trustee appointed by the Court receiver of the trust estate, (sic). The Court has a discretion to grant or refuse it."

6. In Law Relating to Receivers by Sir John Wooroffee, Sixth Edition at page 39, it is stated that "A party will not, however, be appointed unless upon his undertaking to act without salary, and when appointed he does not thereby lose his privilege as party in the cause". At page 238 it is stated. "A receiver may be appointed with his consent to act without salary. If a trustee or party interested asks leave to propose himself as receiver, he will be usually required to act without salary, unless by consent". At page 302 it is stated, "party proposing himself as receiver is to act without salary, unless by consent. A managing partner consenting to act as receiver during dissolution does not forego his