Think of a company — say, Rajesh & Co. Pvt. Ltd. — that took a loan against its factory (which is a charge on that asset). Now the company defaults. The lender goes to court and gets a receiver appointed to manage or recover value from that factory. Section 84 answers a simple question: who tells the Registrar of Companies (RoC) about this?
The person who gets the receiver appointed — or who appoints one under a power in a legal document (like a debenture trust deed) — must notify both the company and the RoC within 30 days. They must send a copy of the court order or the instrument along with the notice. The RoC then registers the details of the receiver, the person appointed, or the instrument in the Register of Charges — but only after the prescribed fee is paid. This keeps public records accurate so anyone checking the company's charge register knows an outside hand is now managing the charged asset.
Sub-section (2) covers the exit side: when the receiver stops holding the appointment (job done, or removed), they must again notify both the company and the RoC. The RoC registers this cessation notice too. This is a clean bookend — entry recorded, exit recorded. The key takeaway for your exam: two triggers → two notices → two registrations, and the 30-day window applies only to the appointment, not the cessation (the Act says the cessation notice must be given but does not fix a specific number of days for it — a popular exam trap). This section is examined as a short theory or MCQ question, especially testing the 30-day limit and who bears the obligation to notify.
📊 Worked example
Example 1 — Court-appointed receiver
Setup: ABC Bank holds a charge over the plant and machinery of Verma Industries Pvt. Ltd. (registered charge value: ₹2,00,00,000). The bank files a petition and the court passes an order appointing Mr. Arjun Mehta as receiver on 1 April 2025.
Working:
- Who must notify? → ABC Bank (the person who obtained the order)
- Notify whom? → Verma Industries Pvt. Ltd. (the company) AND the RoC
- What to attach? → Copy of the court order
- Deadline: 30 days from 1 April 2025 = 30 April 2025
- RoC action: Registers Mr. Mehta's particulars in the Register of Charges on payment of prescribed fee
Final Answer: ABC Bank must send the notice + court order copy by 30 April 2025.
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Example 2 — Instrument-based appointment
Setup: A debenture trust deed of Iyer Textiles Ltd. (debentures worth ₹5,00,00,000) gives the debenture trustee, Ms. Priya Nair, the power to appoint a manager over charged assets in case of default. She exercises this power on 15 May 2025.
Working:
- Who must notify? → Ms. Priya Nair (she made the appointment)
- Deadline: 30 days from 15 May 2025 = 14 June 2025
- Attach: Copy of the debenture trust deed (the instrument)
- Later, when the manager ceases: Ms. Priya Nair must again notify company + RoC (no specific day limit stated in the Act)
Final Answer: Ms. Nair must notify company and RoC by 14 June 2025; on cessation, another notice is mandatory.
⚠️ Common exam mistakes
- Mixing up who notifies: Students think the company must inform the RoC. Wrong — the obligation is on the person who obtained the order or made the appointment (e.g., the lender or trustee).
- Applying the 30-day limit to cessation too: The 30-day window applies only to the appointment. The Act requires a cessation notice but prescribes no specific time limit for it — don't write '30 days' for cessation in the exam.
- Forgetting the company as a recipient: Students only mention the RoC. Remember, notice must go to both the company AND the RoC — miss one and your answer is incomplete.
- Omitting the copy of the order/instrument: Just sending a notice isn't enough. A copy of the court order or the instrument must accompany the notice — this is a separate, examinable requirement.
- Assuming registration is automatic: The RoC registers the particulars only on payment of prescribed fees — students often leave this condition out of answers, losing easy marks.
📖 Bare Act text — Section 84, Companies Act 2013
(click to expand)
(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.
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