Premji Ratansey Shah v. Union of India
Rule established
A receiver cannot act in excess of the powers conferred by the court's order. Acts outside the court order are void, and the receiver is personally liable for damages caused by such unauthorised acts.
Facts
- A receiver was appointed by the court to manage disputed property
- The receiver undertook certain acts beyond the scope of powers conferred by the court's order
- Parties suffered loss due to these unauthorised acts
- The question was whether the receiver bore personal liability
Issue
- Whether a receiver can be held personally liable for acts exceeding the powers conferred by the court order.
Held
- A receiver is an officer of the court and derives all authority from the court's order
- The receiver cannot exceed the terms of the appointment order
- Acts outside the court order are void: they have no legal effect
- The receiver is personally liable for damages caused by unauthorised acts
- Third parties dealing with a receiver must verify the scope of the receiver's authority
Ratio Decidendi
A receiver's authority is limited to the court order. Ultra vires acts are void and attract personal liability. The receiver acts as the court's arm, not independently.
How to use it in an exam
- Key line: "In Premji Ratansey Shah (1994), the Supreme Court held that a receiver cannot act beyond the court order. Ultra vires acts are void and the receiver is personally liable for resulting damages."
Source
Source: (1994) 2 SCC 71; verified via standard CPC references
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.