SC: Prime Facie Case Alone Insufficient To Appoint Court Receiver; Compelling Reasons Required

The Supreme Court in the case Hitesh Bhuralal Jain Versus Rajpal Amarnath Yadav And Ors observed that the expressions like 'prima facie case, or 'conduct' alone are insufficient to justify the appointment of a Court Receiver.

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The Court in the case emphasized that a compelling reason must be provided, demonstrating how the property would deteriorate Without the Receiver's intervention.

The appellant contested the decision of High Court to appoint a court receiver for the disputed property, a decision previously rejected by the City Civil Court, Borivali.

In the present case, the key issue being whether the mere recording of a prima facie case in favor of the respondent justified the appointment of a receiver.

The bench comprising of Justice PS Narasimha and Justice Manoj Misra was hearing the present matter.