Section 84 of CA 2013 : Section 84: Intimation Of Appointment Of Receiver Or Manager

Explanation using Example

Imagine a scenario where a creditor, ABC Financial Services, has a charge over the assets of XYZ Pvt. Ltd. due to a loan agreement. XYZ Pvt. Ltd. fails to repay the loan, and as a result, ABC Financial Services obtains a court order to appoint a receiver, Mr. Smith, to manage the property of XYZ Pvt. Ltd. that was under the charge. According to Section 84(1) of The Companies Act, 2013, ABC Financial Services must notify both the company (XYZ Pvt. Ltd.) and the Registrar of Companies (RoC) about the appointment of Mr. Smith as a receiver within 30 days, providing a copy of the court order. This notice ensures that the appointment is officially recorded in the register of charges after the prescribed fee is paid.

Later, when Mr. Smith's term as a receiver ends, he must inform XYZ Pvt. Ltd. and the RoC that he is no longer in that role, as per Section 84(2). The RoC will then register this notice, thus updating the register of charges to reflect that Mr. Smith has ceased to be the receiver.