Section 84 Companies Act: Intimation of appointment of receiver or manager

Section 84 of Companies Act: Corporate Governance & Statutory Compliance

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

1. If any person obtains an order for the appointment of a receiver of, or of a person to manage, the property, subject to a charge, of a company or if any person appoints such receiver or person under any power contained in any instrument, he shall, within a period of thirty days from the date of the passing of the order or of the making of the appointment, give notice of such appointment to the company and the Registrar along with a copy of the order or instrument and the Registrar shall, on payment of the prescribed fees, register particulars of the receiver, person or instrument in the register of charges.

2. Any person appointed under sub-section (1 ) shall, on ceasing to hold such appointment, give to the company and the Registrar a notice to that effect and the Registrar shall register such notice.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 84

Section 84 mandates that any person who obtains an order for the appointment of a receiver or manager of a company's charged property, or appoints one under contractual powers, must give statutory intimation to the company and the Registrar within thirty days.

Statutory Trigger Events: Applies upon the passing of a court or tribunal order appointing a receiver or manager, or the contractual exercise of powers under an indenture or mortgage deed to appoint an asset manager.
Thirty-Day Mandatory Intimation: The appointee or decree-holder must file notice in Form CHG-6 with the company and the Registrar within thirty days of the order or appointment.
Notice of Cessation: Mandates an identical thirty-day filing in Form CHG-6 upon the receiver or manager vacating office or ceasing to act.
RoC Registration and Public Record: The Registrar must enter the appointment or cessation details into the statutory register of charges, alerting creditors and stakeholders to custodial shifts over company assets.

Key Landmark Precedents:

Industrial Credit and Investment Corporation of India (ICICI) v. Srinivas Agencies, (1996) 4 SCC 165: The Supreme Court underscored the custodial status of court-appointed receivers over charged assets, ruling that regulatory filings under company law ensure transparent administration and prevent conflicting attachments.
Moss Steamship Co. Ltd. v. Whinney, [1912] AC 254: The House of Lords established that a receiver and manager appointed over corporate assets acts as an officer of the court or under instrument terms, and public disclosure is vital to determine whether debts incurred bind the company or the receiver personally.
State Bank of India v. Trade Art Fabricators Pvt. Ltd., 2011 SCC OnLine Del 3122: Held that failure to notify the RoC of a receiver's appointment exposes the secured creditor to statutory default and prevents the receiver from asserting unimpeachable title against subsequent court bailiffs.

Courtroom Practice & Strategic Litigation Guidance:

When securing an ex-parte order appointing a receiver over corporate receivables or factory premises in a commercial mortgage suit, ensure your litigation team files Form CHG-6 along with a certified copy of the order within 30 days. Failure to file under Section 84 can lead to personal monetary penalties and complicate enforcement against third-party attachment orders.

Section 84: Intimation of appointment of receiver or manager

Section 84 of Companies Act: Corporate Governance & Statutory Compliance

Legal Commentary & Landmark Judgments: Section 84