Article 56 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 56 من اللائحة التنفيذية لنظام الإفلاس · الفصل الخامس: إجراء التصفية: طلب السداد
This article of the Regulations allows the trustee, at the debtor's request, to ask the court to postpone ending the liquidation for an acceptable reason, such as bringing a claim against a third party.
Official text (Arabic)
This article has not been amended since the law was issued.
للأمين -بناءً على طلب المدين- أن يتقدم إلى المحكمة بطلب تأجيل إنهاء إجراء التصفية لسبب مقبول بما في ذلك إقامة دعوى ضد الغير للحصول على تعويض أو استرداد أصل، على أن يرفق بطلبه المعلومات والوثائق المحددة لذلك.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 56 explained in plain English
The time to end the liquidation procedure may arrive while the bankruptcy estate still has possible rights not yet collected. This article of the Implementing Regulations of the Bankruptcy Law addresses this by allowing a request to postpone ending the procedure:
- Who submits the request to the court: the trustee.
- At the request of: the debtor.
- The condition: an acceptable reason.
- Attachments: the information and documents specified for this purpose, which under Article 1 of the Regulations are those specified by the Bankruptcy Committee in coordination with the Ministry of Justice.
The article gives two examples of an acceptable reason:
- Bringing a claim against a third party to obtain compensation.
- Bringing a claim against a third party to recover an asset.
The phrase "including" indicates that these are examples and not exhaustive. The article provides that the trustee may submit the request, that is, it is permitted and not obligatory for the trustee, and the decision is ultimately the court's. The article does not set the length of the postponement.
This article follows Article 55 on returning the surplus after the creditors have received their rights, and is followed by Article 57, which regulates the request of the small debtor to terminate its contracts. To assess the usefulness of a postponement request, you may consult a lawyer specialized in bankruptcy and commercial cases.
Practical example
A trading company in Riyadh is at the liquidation stage and has a pending claim against a former customer to recover trucks it owns. Before the procedure ends, the debtor asks the trustee to apply to the court to postpone ending the liquidation until the claim is decided, attaching the specified information and documents.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 56 of the Saudi Implementing Regulations of the Bankruptcy Law
Can ending the liquidation procedure be postponed?
Yes. The trustee, at the debtor's request, may ask the court to postpone it for an acceptable reason.
What are examples of an acceptable reason for postponing the end of liquidation?
Bringing a claim against a third party to obtain compensation or to recover an asset.
Does the debtor submit the postponement request to the court directly?
The article provides that it is the trustee who applies to the court, at the debtor's request.
More articles on Liquidation of the Debtor's Assets
- Article 3
This article of the Regulations requires the debtor's directors or board members, before a voluntary liquidation item is put to a vote, to submit an auditor's report and a written declaration to the Ministry or the Capital Market Authority.
يلتزم أعضاء مجلس إدارة المدين أو مديروه أو أعضاء مجلس مديريه أو من في حكمهم - قبل إدراج بند التصفية الاختيارية للمدين؛ للتصويت عليه في جمعية المساهمين أو جمعية
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 11
The trustee sells the bankruptcy estate's assets after the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
يتولى الأمين بيع أصول التفليسة بعد اكتساب حكم أو قرار افتتاح إجراء التصفية أو إجراء التصفية لصغار المدينين الصفة النهائية.
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- Article 26
This article sets out the creditors' committee's tasks in representing the creditors, including approving the sale of any asset worth more than a quarter of the bankruptcy estate's assets, and lets its chair set the time and place of meetings.
1- تلتزم لجنة الدائنين بتمثيل الدائنين في المهمات المنصوص عليها في النظام واللائحة، وتشمل مهماتها الآتي: أ - الموافقة على بيع أي أصل تتجاوز قيمته ربع قيمة أصول
- Article 48
This article of the Regulations requires that the request for payment of a debt that the creditor submits to the debtor under paragraph (2/c) of Article 93 of the Law be dated and state the amount of the debt and its cause.
يجب أن يكون طلب سداد الدين الذي يقدمه الدائن إلى المدين بموجب الفقرة ( 2 / ج ) من المادة (الثالثة والتسعين) من النظام مؤرخاً ومحدداً فيه مقدار الدين وسبب نشوئه.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.