Article 124 of the Saudi Bankruptcy Law
المادة 124 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: إنهاء الإجراء
The article requires the trustee to file the judgment ending the liquidation in the bankruptcy register and the commercial register, if any, and to strike off the debtor's registration in the commercial register.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم الأمين بإيداع حكم المحكمة بإنهاء إجراء التصفية في سجل الإفلاس، والسجل التجاري (إن وجد)، مع شطب قيد المدين في السجل التجاري.
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 124 explained in plain English
This article deals with the procedural step that follows the judgment ending the liquidation, which is making this judgment public in the official registers.
The trustee must:
- File the court's judgment ending the liquidation procedure in the bankruptcy register.
- File it also in the commercial register if the debtor is registered in it.
- Strike off the debtor's registration in the commercial register.
The aim is that those dealing with the debtor and the concerned authorities know that the liquidation has ended and that the debtor no longer exists in the commercial register. The obligation here falls on the trustee, not on the debtor or the creditors.
The phrase "if any" means that filing in the commercial register and striking off the registration apply where the debtor has a registration in it in the first place.
This provision is connected to what follows it: Article 125 provides that the name of a debtor who is a natural person is removed from the bankruptcy register 30 days after the date the judgment ending the liquidation is issued, so that the person can carry on commercial or professional activities. Article 123 also provides for opening administrative liquidation if the ending was because the sale proceeds were insufficient for the expenses. To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
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 124 of the Saudi Bankruptcy Law
Who strikes off the debtor's commercial registration after liquidation?
The trustee must file the judgment ending the liquidation in the bankruptcy register and the commercial register (if any), and strike off the debtor's registration in the commercial register.
Where is the judgment ending the liquidation filed?
In the bankruptcy register, and in the commercial register if the debtor is registered in it.
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.