Article 121 of the Saudi Bankruptcy Law
المادة 121 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: إنهاء الإجراء
The article requires the liquidation trustee to ask the court to end the procedure once sales, lawsuits and the final distribution are complete, after notifying creditors, with objections allowed within 14 days.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يلتزم الأمين بتقديم طلب إلى المحكمة للحكم بإنهاء إجراء التصفية عند اكتمال إجراءات بيع أصول التفليسة وانتهاء الدعاوى التي يكون المدين طرفاً فيها والتوزيع النهائي على الدائنين مرافقاً له الحسابات الختامية والتقارير النهائية.
2- يجب على الأمين أن يبلغ الدائنين قبل تقديم الطلب. ولكل ذي مصلحة حق الاعتراض على هذا الطلب أمام المحكمة خلال (أربعة عشر) يوماً من تقديمه.
3- يجب أن يتضمن طلب الأمين إنهاء إجراء التصفية للمدين ذي الصفة الاعتبارية طلباً بحل ذلك المدين.
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 121 explained in plain English
This article sets out when and how the trustee asks to end the liquidation procedure, which is the final stage after the debtor's assets are sold and the proceeds distributed.
1- When the request is filed: The trustee must file a request with the court for a judgment ending the liquidation when three things have all occurred:
- The procedures for selling the bankruptcy estate assets are complete.
- The lawsuits to which the debtor is a party have ended.
- The final distribution to the creditors has been completed.
The request must be accompanied by the final accounts and final reports, so that the court and the creditors can review the result of the liquidation.
2- Notifying creditors and objecting: The trustee must notify the creditors before filing the request. Any interested party has the right to object to the request before the court within 14 days of its filing.
3- A debtor with legal personality: If the debtor is a company or other legal entity, the request to end must include a request to dissolve the debtor.
Article 122 completes this provision: the court rules to end the liquidation if the trustee asks for it because the liquidation work is complete, and it may do so without holding a hearing, and rules to dissolve the debtor if it is a person with legal personality. To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
A company in Jeddah went through the liquidation procedure, and after the trustee sold its assets, the lawsuits brought by and against it ended and the proceeds were finally distributed to the creditors, the trustee notified the creditors, then filed a request with the court to end the liquidation, attaching the final accounts, and asked in it to dissolve the company. A creditor who saw a defect in the accounts had 14 days from the filing of the request to object to it before the court.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 121 of Bankruptcy Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Commercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 121 of the Saudi Bankruptcy Law
When does the trustee ask to end the liquidation?
When the sale of the bankruptcy estate assets is complete, the lawsuits to which the debtor is a party have ended, and the final distribution to the creditors has been made, attaching the final accounts and final reports.
Can a creditor object to the request to end the liquidation?
Yes. Any interested party has the right to object before the court within 14 days of the filing of the request, and the trustee must notify the creditors before filing it.
Is the company dissolved after its liquidation ends?
The trustee's request to end the liquidation of a debtor with legal personality must include a request to dissolve that debtor.
More articles on Liquidation of the Debtor's Assets
- Article 7
Article 7 bars the liquidation of any person under another law unless its assets cover all its debts and it is not defaulting, and makes management members jointly liable if this is violated.
1- مع مراعاة ما ورد في المادة (الرابعة) من النظام، لا يصفى أي شخص بموجب نظام آخر إلا إذا كانت أصوله تكفي لسداد جميع ديونه وكان غير متعثر. 2- إذا تم حل المدين وت
- Article 69
The debtor continues to manage its business during financial reorganization under the trustee's supervision, and at the trustee's request the court may remove its control in cases of negligence, mismanagement or criminal acts.
1- دون إخلال بصلاحيات ومهمات الأمين، يستمر المدين في إدارة أعماله ونشاطه خلال فترة إجراء إعادة التنظيم المالي تحت إشراف الأمين. 2- إذا ارتكب المدين أو أحد المسؤ
- Article 90
The court opens liquidation or administrative liquidation after financial restructuring ends if the debtor is distressed or bankrupt, the procedure's conditions are met, and the ending was for specified grounds.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب من ذي مصلحة- بافتتاح إجراء التصفية أو التصفية الإدارية إذا تحققت الشروط الآتية: أ - أن يكون المدين متعثراً أو مفلسا
- Article 92
The article allows the debtor, a creditor or the competent authority to ask the court to open the liquidation procedure if the debtor is distressed or bankrupt.
دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء التصفية للمدين إذا كان المدين متعثراً أو مفلساً.
- Article 93
The article requires that a liquidation request be accompanied by the information and documents the Implementing Regulations specify to be registered, and sets special conditions where one or more creditors file it.
1- يشترط لقيد طلب افتتاح إجراء التصفية لدى المحكمة أن يقدم الطلب مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة. 2- لا يقيد طلب دائن أو أكثر
- Article 94
A creditor's request to open liquidation is not registered if the debtor disputed the debt before the request, and filing it despite proof of the dispute is an abuse of the procedure.
لا يقيد طلب الدائن بافتتاح إجراء التصفية إذا كان المدين قد نازع الدائن في الدين قبل تقدم الدائن بالطلب. ويعد طلب الدائن افتتاح الإجراء مع وجود ما يثبت منازعة ال
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.