Article 177 of the Saudi Bankruptcy Law
المادة 177 من نظام الإفلاس · الفصل التاسع: إجراء التصفية الإدارية: الإعلان عن التصفية الإدارية وتقديم المطالبات إلى لجنة الإفلاس
The article empowers the Bankruptcy Committee to ask the court, the debtor, a creditor or anyone else for any information or document relevant to the procedure, and requires it to prepare an inventory of the estate's assets.
Official text (Arabic)
This article has not been amended since the law was issued.
1- للجنة الإفلاس أن تطلب من المحكمة أو المدين أو الدائن أو أي جهة أخرى تقديم أي معلومة أو وثيقة ذات صلة بالإجراء.
2- تعد لجنة الإفلاس قائمة جرد بأصول التفليسة -إن وجدت- تتضمن معلومات تفصيلية عنها.
وتبين اللائحة أحكام ذلك.
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 177 explained in plain English
This article gives the Bankruptcy Committee in administrative liquidation two tools for understanding the debtor's position.
1- Requesting information: the committee may ask any information or document relevant to the procedure to be provided by:
- the court.
- the debtor.
- a creditor.
- any other party.
Note that the request is limited to information or documents that are relevant to the procedure.
2- The inventory list: the committee prepares an inventory list of the bankruptcy estate's assets, if any, containing detailed information about them. The phrase "if any" reflects that administrative liquidation may concern a debtor with very few or no assets.
The details: the Implementing Regulations set out the provisions on this, so the text does not specify the form of the request, the deadline for reply, or the detailed content of the inventory list.
The inventory list prepares for the next step, as Article 178 provides that the committee begins selling the estate's assets, if any, from the date the procedure is opened unless it decides that the sale proceeds would not be worthwhile. A person from whom the committee has requested documents and who needs to assess their obligations may consult a lawyer specialized in bankruptcy and commercial matters.
Practical example
During the administrative liquidation of a small shop in Buraydah, the Bankruptcy Committee asked the bank the shop deals with for account statements, and the owner for a list of equipment, then prepared a detailed inventory list of the assets it found.
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 177 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 177 of the Saudi Bankruptcy Law
Is the Bankruptcy Committee entitled to ask me for documents if I am a creditor?
Yes. The committee may ask a creditor, the debtor, the court or any other party to provide any information or document relevant to the procedure.
What is the inventory list in administrative liquidation?
A list the Bankruptcy Committee prepares of the estate's assets, if any, containing detailed information about them, and the Implementing Regulations set out its provisions.
More articles on Administrative Liquidation
- 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 122
The article sets out two cases in which the court ends the liquidation procedure at the trustee's request, allows it without a hearing, and provides for dissolving a debtor with legal personality.
1- تقضي المحكمة بإنهاء إجراء التصفية في الحالتين الآتيتين: أ- إذا تقدم الأمين بطلب إنهاء الإجراء لعدم كفاية حصيلة بيع أصول التفليسة للوفاء بمصروفات إجراء التصفي
- Article 123
The article requires the court to open administrative liquidation and refer the papers to the Bankruptcy Committee if it ended the liquidation because the sale proceeds were insufficient for its expenses.
تقضي المحكمة بافتتاح إجراء التصفية الإدارية للمدين إذا قضت بإنهاء الإجراء بموجب الفقرة (1/أ) من المادة (الثانية والعشرين بعد المائة) من النظام، وتحيل أوراق الدع
- Article 158
The article lets the court, of its own motion or at an interested party's request, open liquidation for small debtors or administrative liquidation after reorganization ends, on three conditions.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة - بافتتاح إجراء التصفية لصغار المدينين أو التصفية الإدارية إذا تحققت الشروط الآتية: أ- أن يكون المدين الصغ
- Article 164
The article requires the trustee to ask the court to end liquidation for small debtors as soon as it learns that proceeds from selling the estate's assets will not cover the procedure's expenses.
يلتزم الأمين بتقديم طلب إلى المحكمة لإنهاء إجراء التصفية لصغار المدينين فور علمه بعدم كفاية حصيلة بيع أصول التفليسة للوفاء بمصروفات إجراء التصفية لصغار المدينين
- Article 167
The article states that administrative liquidation aims to sell bankruptcy estate assets whose sale is not expected to produce proceeds enough for the expenses of liquidation or small debtor liquidation.
يهدف إجراء التصفية الإدارية إلى بيع أصول التفليسة التي لا يتوقع أن ينتج عن بيعها حصيلة تكفي للوفاء بمصروفات إجراء التصفية أو إجراء التصفية لصغار المدينين.
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.