Section 69A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A mortgagee who has the right to sell under section 69 may also appoint a receiver of the income of the mortgaged property. Section 69A says who may be appointed, whose agent the receiver is, what he can do, what he may keep as commission, and how he must apply the money. This is explained as per the text of the Act consulted.
A mortgagee who has the right to exercise a power of sale under section 69 may appoint, by a signed writing, a receiver of the income of the mortgaged property. The receiver is deemed the agent of the mortgagor, may collect the income, and may keep a commission not exceeding five per cent, as printed. The money is applied in the fixed order in sub-section (8). Most of the rules can be varied by the mortgage-deed.
Source and State note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Section 69A is printed inside square brackets, which marks inserted or substituted wording. Some States have amended the Act or made local rules, and the position in your State should be checked; nothing from any State is described here.
This section builds on the power of sale in our article on Section 69. If you are a lender or a borrower thinking about receivership, a short conversation through our legal dispute resolution service helps before anything is signed.
Sub-section (1): who can appoint, and when
A mortgagee having the right to exercise a power of sale under section 69 is entitled, subject to sub-section (2), to appoint, by a writing signed by him or on his behalf, a receiver of the income of the mortgaged property or any part of it. Note the link with section 69: a mortgagee without that right cannot use this section. Sub-section (5) of section 69 also says that neither section applies to powers conferred before 1 July 1882.
Sub-section (2): who can be the receiver
- A person named in the mortgage-deed who is willing and able to act may be appointed.
- If nobody is named, or all those named are unable, unwilling or dead, the mortgagee may appoint any person to whose appointment the mortgagor agrees.
- Failing agreement, the mortgagee may apply to the Court, and a person appointed by the Court is deemed to have been duly appointed by the mortgagee.
- A receiver may be removed at any time by a writing signed by or on behalf of the mortgagee and the mortgagor, or by the Court on an application by either party and on due cause shown.
- A vacancy may be filled in the same way.
Sub-section (3): the receiver is the mortgagor's agent
A receiver appointed under this section is deemed to be the agent of the mortgagor, and the mortgagor is solely responsible for the receiver's acts or defaults, unless the deed provides otherwise or unless the acts or defaults are due to the improper intervention of the mortgagee. That means a lender who interferes loses this protection.
Sub-sections (4) and (5): powers and payers
The receiver may demand and recover all the income of which he is appointed receiver, by suit, execution or otherwise, in the name of either the mortgagor or the mortgagee, to the full extent of the interest the mortgagor could dispose of. He may give valid receipts and exercise any powers the mortgagee has delegated to him under the section. A person paying money to the receiver need not inquire whether the appointment was valid.
Sub-section (6): commission
The receiver may retain, for his remuneration and for all costs, charges and expenses incurred as receiver, a commission at a rate not exceeding five per cent on the gross amount of money received, as specified in his appointment. If no rate is specified, the rate is five per cent on that gross amount, or such other rate as the Court thinks fit to allow on his application. The five per cent is stated as printed.
Sub-section (7): insurance
If directed in writing by the mortgagee, the receiver must insure to the extent, if any, to which the mortgagee might have insured, and keep the property insured against loss or damage by fire, out of money received, where the property is of an insurable nature.
Sub-section (8): the order of applying money
Subject to the Act's provisions on application of insurance money, the receiver applies all money received as follows:
| Order | Application |
|---|---|
| (i) | Rents, taxes, land revenue, rates and outgoings affecting the mortgaged property |
| (ii) | Annual sums or other payments, and interest on principal sums, having priority to the mortgage in right whereof he is receiver |
| (iii) | His commission, premiums on fire, life or other insurances properly payable under the deed or the Act, and the cost of necessary or proper repairs directed in writing by the mortgagee |
| (iv) | Interest falling due under the mortgage |
| (v) | Discharge of the principal money, if so directed in writing by the mortgagee |
The residue is paid to the person who, but for the receiver's possession, would have been entitled to receive the income, or who is otherwise entitled to the mortgaged property.
Sub-section (9): what the deed can change
Sub-section (1) applies only if and as far as a contrary intention is not expressed in the mortgage-deed. Sub-sections (3) to (8) may be varied or extended by the deed, and as varied they operate as though written into those sub-sections.
Sub-sections (10) and (11): asking the Court for advice
An application may be made to the Court, without a suit, for its opinion, advice or direction on any present question about the management or administration of the mortgaged property, other than questions of difficulty or importance not proper in the Court's opinion for summary disposal. A copy of the application is served on, and the hearing may be attended by, such interested persons as the Court thinks fit, and costs are in the Court's discretion. "The Court" means the Court which would have jurisdiction in a suit to enforce the mortgage.
Example
A lender holds a mortgage on a commercial building with a deed that gives a power of sale. The deed names no receiver, so he proposes Anil, a chartered accountant, and the borrower agrees. The lender appoints Anil by a signed writing. Anil collects the rents from the tenants in the name of the mortgagor, pays the property tax first, keeps his commission at the rate specified, pays interest due under the mortgage, and passes any balance to the borrower. If Anil makes an error, the borrower is responsible, unless the lender improperly interfered.
For more on enforcing a mortgage, see the article on sections 67 and 67A.
Need help with a receiver or a mortgage enforcement step?
Appointing a receiver is a formal step with a signed writing, a choice of person and an order of payments. Our legal dispute resolution team can review the deed and the proposed appointment before you go ahead.
Key takeaways
- Only a mortgagee with the right to exercise a power of sale under section 69 may appoint a receiver of income.
- The receiver is the mortgagor's agent, and the mortgagor bears his defaults unless the lender improperly intervenes.
- Commission cannot exceed five per cent as printed, and is five per cent if no rate is specified, unless the Court allows another.
- Money is applied in the order in sub-section (8).
- The deed can vary sub-sections (3) to (8).
- The Court's opinion can be sought without a suit.
Read next
- Section 69: power of sale without the Court
- Sections 70 to 73: rights of a mortgagee in possession
- Sections 76 and 77: liabilities of a mortgagee in possession
- Mortgage deed: drafting essential clauses and registration
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.