PROVISIONS

Section 41. Appointment of receiver. — The court may appoint a receiver

of the property of the judgment obligor; and it may also forbid a transfer or
other disposition of, or any interference with, the property of the judgment
obligor not exempt from execution.

Section 42. Sale of ascertainable interest of judgment obligor in real

estate. — If it appears that the judgment obligor has an interest in real
estate in the place in which proceedings are had, as mortgagor or
mortgagee or other- wise, and his interest therein can be ascertained
without controversy the receiver may be ordered to sell and convey such
real estate or the interest of the obligor therein; and such sale shall be
conducted in all respects in the same manner as is provided for the sale of
real state upon execution, and the proceedings thereon shall be approved
by the court before the execution of the deed.

Section 43. Proceedings when indebtedness denied or another person

claims the property. — If it appears that a person or corporation, alleged to
have property of the judgment obligor or to be indebted to him, claims an
interest in the property adverse to him or denied the debt, the court may
authorize, by an order made to that effect, the judgment obligee to institute
an action against such person or corporation for the recovery of such
interest or debt, forbid a transfer or other disposition of such interest or
debt within one hundred twenty (120) days from notice of the order, and
may punish disobedience of such order as for contempt. Such order may
be modified or vacated at any time by the court which issued it, or by the
court in which the action is brought, upon such terms as may be just.

REPORT

S.41

The court may appoint a receiver who is an officer of the court who will manage
the property of the litigants pending litigation. This remedy is found under Rule 59
on Receivership. The purpose of receivership is to preserve the property by placing
it in the hands of the court to remove it from the control of a party because a party
may dispose of the property.

S42
 EXAMPLE: The obligor turns out to have an interest in real property as a
mortgagee, or he has a right to redeem, or right to foreclose, or right to repurchase.
The obligee can levy on these rights because these rights are property rights by
themselves. This time, it is not the property which is sold but your interest.

S43

EXAMPLE: The obligee cannot find any property of the obligor. But there is a
rumor that Pong owes the obligor a sum of money. Upon examination, Pong denies
indebtedness. But the obligee believes that he has evidence that Pong owes the
obligor money. In this case, the obligee can ask the court that he be allowed to file a
collection case against Pong on behalf of the obligor.

Q: Can the obligee considered as a real party in interest in this case?

A: YES. The obligee is now considered as a representative party. Section 43 is an
example of the phrase, “or a party authorized by law or these Rules…” under Rule 3,
Section 3: