RULE 59

SECTION 2:
Bond on appointment of receiver.

Before issuing the order appointing a receiver the

court shall require the applicant to file a bond executed to the
party against whom the application is presented, in an
amount to be fixed by the court, to the effect that the
applicant will pay such party all damages he may sustain by
reason of the appointment of such receiver in case the
applicant shall have procured such appointment without
sufficient cause; and the court may, in its discretion, at any
time after the appointment, require an additional bond as
further security for such damages.
PROCEDURE FOR APPOINTMENT OF RECEIVER:

1. A verified application must be filed by the party applying for appointment of a receiver.
2. The applicant must have an interest in the property or funds subject of the action.
3. The applicant must show that the property or funds is in danger of being lost, wasted,
dissipated.
4. The application must be with notice and must set for hearing.

5. Before issuing the appointment of a receiver, the

court shall require the applicant to post a bond in
favor of the adverse party.

6. Oath
7. Before entering upon his duties, the receiver must be sworn to perform his duties
faithfully.
REQUIREMENTS FOR THE ISSUANCE OF AN
ORDER OF A RECEIVER:

Court shall require:

• File a bond
• Require an additional bond
SECTION 3:
Denial of application or discharge of receiver.

The application may be denied, or the receiver discharged,

when the adverse party files a bond executed to the applicant, in
an amount to be fixed by the court, to the effect that such party will
pay the applicant all damages he may suffer by reason of the acts,
omissions, or other matters specified in the application as ground
for such appointment. The receiver may also be discharged if it is
shown that his appointment was obtained without sufficient cause.
GROUNDS FOR DENIAL OR DISCHARGE OF
APPLICATION:
1. The adverse party files a bond executed to the applicant
• In an amount fixed by the court
• To the effect that such party will pay the applicant all
damages he may suffer by reason of the acts or
omission.

2. Other matters specified in the application as ground for such

appointmernt; or

3. The receiver may also be discharged if it is shown that his

appointment was obtained without sufficient cause.
REQUISITES FOR APPLICATION:
• Applicant must have interest;

• Necessity of imminent danger

• Case of National investment and
Development Corp. vs Judge Aquino, 30 June
1988, 163 SCRA 153
• Discretion in appointment of receiver to be
exercised with extreme caution
• CONSEQUENCES AND EFFECTS TO BE CONSIDERED BY
COURT:
1. Whether or not the injury resulting from such appointment
would probably be greater than the injury ensuing if the
status quo is left undisturbed;
2. Whether or not the appointment will imperil the interest of
others whose rights deserve as much a consideration from
the court as those of the person requesting for receivership.
(Ralla, et.al. vs. Hon. Alcasid)

• Clerk of court not to be appointed as receiver