Official Receivers Appointment Rules, National Capital Territory of Delhi, 2024
DEPATMENT OF LAW, JUSTICE AND LEGISLATIVE AFFAIRS
NOTIFICATION
Delhi, the 14th June, 2024
No. F.6/12/2018-Judicial/jtsecylaw /735-744.—In exercise of the powers conferred by section 57 of the Provincial Insolvency Act, 1920 (Act V of 2020), the Lt. Governor of National Capital Territory of Delhi is pleased to make the following rules for appointment of Official Receivers, namely,
CHAPTER-I
PRELIMINARY
1. Title, Commencement and Applicability. –(1) These Rules shall be called the appointment of Official Receivers for National Capital Territory of Delhi Rules, 2024 under section 57 of the Provincial Insolvency Act, 1920 (Act V of 1920).
(2) These shall be applicable within the National Capital Territory of Delhi.
(3) They shall come into force on the date of publication of this notification in the Delhi Gazette.
2. Definitions. – (1) In these rules, unless the context otherwise requires:
(a) “Act” means the Provincial Insolvency Act, 1920 (Act V of 1920)
(b) “Advocate” means an Advocate registered with Bar Council of Delhi.
(c) “District” means Judicial District in National Capital Territory of Delhi.
(d ) “District Judge” shall mean the Principal District & Session Judge as appointed by High Court of Delhi for each Judicial District in National Capital Territory of Delhi.
(e) “Department” means Department of Law Justice and Legislative Affairs, Government of National Capital Territory of Delhi.
(f) “Government” means the Lieutenant Governor of the National Capital Territory of Delhi appointed by the President under the Article 239 read with Article 239-AA of the Constitution of India.
(g) “Official Receiver” means Official Receiver appointed under these Rules.
(h)” Registration number” means the registration number allotted to Official Receiver so appointed, as per the register maintained by the Department.
(2) Any word or expressions appearing in these rules, but not defined shall have the same meaning as assigned to be given and under the Act.
(3) The words and expressions appearing in these rules, but not defined under these rules or the Act, shall have the meaning as given to them under the General Clauses Act, 1897 (No. X of 1897).
(4) In case of any ambiguity, the interpretation provided by the Department shall be final.
CHAPTER-II
APPOINTMENT OF OFFICIAL RECEIVER
3. Eligibility and Qualifications for appointment as Official Receiver. –(1) An Advocate practising in the Courts of Delhi having standing of more than 15 years at Bar and having experience in handling insolvency matters in the Courts of Delhi, shall be eligible to be considered for appointment as Official Receiver.
4. Number of vacancies of Official Receiver. – (1) One Official Receiver may be appointed for each judicial district of National Capital Territory of Delhi.
5. Manner of Appointment. – (1) Principal District and Session Judge, upon requisition by the Department, shall recommend names of five advocates practicing in their jurisdiction, having experience as prescribed under Rule 3, after following such procedure as deemed appropriate by them, to the Department for consideration.
(2) The Committee comprising two officers of Deputy Secretary level or above and headed by Principal Secretary (Law, Justice and Legislative Affairs) shall consider the names recommended by the Office of Ld. Principal District and Session Judge and recommend suitable candidates, as deemed fit and proper for discharging the duties of Official Receiver.
(3) The Government may, by notification in the Official Gazette, appoint a person as may be deemed suitable by the Committee under Rule 5(2) as Official Receiver for each District of National Capital Territory of Delhi.
(4) The Government may, by way of an order, also direct Official Receiver of a district to be Official Receiver for more than one district.
(5) The tenure of the Official Receiver shall be for three years which may be extended for one year by the Government after due consideration of his performance.
CHAPTER-III
REMUNERATION
6. Remuneration payable to the Official Receiver. –1. Every Official Receiver shall receive the following remuneration:-
|
|
Description | Percentage | REMARKS |
| 1 | 2 | 3 | |
| (a) | On amount realized from the insolvents assets | 8 per cent of the realization up to
Rs 10,000 per estate and beyond that 5 per cent |
|
| (b) | When an application is received in writing to the insolvency Judge by a creditor who holds and beyond that 6 per cent as security any part of the insolvent’s property, the Official Receiver has sold the property and realized security under a written order of the court, on the proceeds of sale | 8 per cent of the realization, up to Rs 10,000 per estate and beyond that 5 per cent | |
| (c) | Where a compromise has been effected with the in- solvent or settlement made among the creditors | 8 per cent of the total sum, agreed to be paid to the creditors up to Rs 10,000 per estate and beyond that
5 per cent |
|
| (d) | Where the property is sold through the Official Receiver of another district where the property is situated | 5 per cent of the sale proceeds up to Rs 10,000 per estate and beyond that 4per cent | |
| (e) | Where the Official Receiver sells property which is subject of insolvency proceedings in another district | 3 per cent of the sale proceeds up to Rs 10,000 and beyond that 2 per cent | |
| (f) | Where the property of the Insolvent is sold through the Nazarat Staff | 5 per cent of the sale proceeds up to Rs.5,000 per estate and beyond that 3 per cent | |
| Note- Two per cent of the sale proceeds shall be credited to Government under the head “XVII-Administration of Justice Misc. Fees and Fines – insolvency Courts Receipts” | |||
| (g) | Where the property is sold through a Court of another State where the property is situate | 5 per cent of the sale proceeds- up to Rs 10,000 per estate and beyond that
2 per cent |
|
| (h) | Where the Official Receiver sells property of an insolvent adjudicated in another State | 3 per cent of the sale proceeds up to Rs 10,000 and beyond that 2 per cent | |
| (i) | Where the order of adjudication is set aside before the value of the property Official Receiver has made any realization | 1 per cent of the estimated value of the property | |
| (j) | Where the Official Receiver is an Ad interim Receiver prior to adjudication in Insolvency Proceedings | Same as above | |
| (k) | In the case of money received by the Official Receiver from the Nazir on account of sales held through Court prior to adjudication |
5 per cent of the amount received up to Rs 10,000 and beyond that 3 per cent |
|
Provided that in all cases except those mentioned in items (e), (h),(i) and (j) half the amount of remuneration may not be paid to the Official Receiver until the assets are distributed.
2. The payment would be made out of the Fund provided under sub-section (3) of section 57 of the Provincial Insolvency Act, 1920, or other- wise.
7. Commission on sale of property subject to mortgage. – (1) In the case of property mortgaged to a creditor, commission should be charged on the entire sale-proceeds only if the creditor makes a written application for the realization of the security through the Court irrespective of the fact whether the purchase money exceeds the mortgage money or not. In cases, where such property is sold without any such application by the secured creditor, the commission should be charged on the sale proceed less the amount involved by the encumbrance.
Note.-The Official Receiver must not delay the disposal of property till such time as he can induce the secured creditors to give their consent to the sale of their interest also in the property. It may be useful, of course, to obtain this consent and so to sell the property free of all encumbrances but the matter must not bedelayed too long. The Official Receiver is competent at all times to dispose of the equity of redemption which in fact is all that does vest in him.
CHAPTER-IV
“OFFICIAL RECEIVER’S REMUNERATION FUND”
8. Funds provided under section 57(3) of the Provincial Insolvency Act. – (1)An account shall be opened by the District Judge.
(2) All sums payable under clause (b) of sub-section (2) of section 56 of the Provincial Insolvency Act, 1920 in respect of the services of an Official Receiver shall be credited into the District Treasury or a Sub-Treasury in the name of the Insolvency Judge, under the head “Official Receiver’s Remuneration Fund”
CHAPTER-V
TRANSACTION OF BUSINESS BY OFFICIAL RECEIVER
9. Transaction of Business by Official Receiver.–(1) The Official Receiver should maintain a separate record for each case showing in detail what action was taken on each day so as to provide a continuous history of the whole proceeding. He shall produce such register as and when required by the authorized officer of Department of Law, Justice & Legislative Affairs or by the Court.
(2) The Official Receiver shall also submit a monthly statement of cases dealt by him to the Department of Law, Justice & Legislative Affairs.
The record should be maintained in two parts—Part A for proceedings under section 80 of the Provincial Insolvency Act, Part B for all other proceedings.
12. The records and registers of the Official Receivers when complete should be made over to the Court for being made a part of the Court Records and being consigned to the Record Room along with them after obtaining approval of the Department.
CHAPTER-VI
SEAL OF OFFICIAL RECEIVER
10. Seal of Official Receiver. – (1) Every Official Receiver shall use a plain circular seal of a diameter of 5cm as indicated by a drawing given below, bearing his name, the name of the area within which he has been appointed to exercise his functions, the registration number and circumscription “OFFICIAL RECEIVER” along with name of the District for which he has been appointed for and the name of the Government, which has appointed him.
CHAPTER-VII
PROFESSIONAL OR OTHER MISCONDUCT
11. Enquiry into allegations of professional or other misconduct by Official Receiver. – (1) An enquiry into any act of misconduct of a Official Receiver may be initiated by the Department of Law, Justice & Legislative Affairs suomo to or on complaint received in this regard.
(2) After affording an opportunity of being heard to the Official Receiver, appropriate action can be recommended by the Department of Law, Justice & Legislative Affairs against such Official Receiver, including recovery of amount or/ his removal from the post or by way of written warning, as the case may be, according to the nature and gravity of the misconduct.
(3) In case of removal, the notification may be issued in the Official Gazette which shall be communicated to the official concerned and the Bar Council of Delhi.
By Order and in the Name of the Lieutenant Governor
of the National Capital Territory of Delhi,
MANMEET SINGH WALIA, Jt. Secy.
नोट :- हमारे वेबसाइट www.indiangovtscheme.com पर ऐसी जानकारी रोजाना आती रहती है, तो आप ऐसी ही सरकारी योजनाओं की जानकारी पाने के लिए हमारे वेबसाइट www.indiangovtscheme.com से जुड़े रहे।