Article 92 of the Saudi Bankruptcy Law
المادة 92 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: طلب افتتاح إجراء التصفية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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.
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 92 explained in plain English
This article opens the provisions on the liquidation procedure in the Bankruptcy Law, and sets out who has the right to ask the court to open this procedure and the basic condition for doing so.
Who may file the request:
- The debtor itself.
- A creditor.
- The competent authority.
The condition: The debtor must be distressed or bankrupt. If the debtor is in neither of these states, there is no basis for the request.
The article begins with the phrase "without prejudice to the provisions of the relevant laws", meaning that this right does not cancel what other laws on the subject provide, but applies alongside them.
Filing the request alone is not enough. Article 93 requires, for the request to be registered, that it be accompanied by the information and documents the Implementing Regulations specify, and adds further conditions if the applicant is a creditor, including that the debt be due and fixed in amount and cause, that it not be less than the amount the Bankruptcy Committee sets, and that the creditor prove it demanded payment from the debtor 28 days before the request was registered without the debtor paying or disputing it.
To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
A supply company in Jeddah has not received its dues from a contracting firm for months, and it turns out the firm is distressed in paying its debts to a number of suppliers. As a creditor, the company may file a request with the court to open the liquidation procedure for the firm, provided it meets the conditions for registering the request set out in Article 93.
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 92 of the Saudi Bankruptcy Law
Who may ask for the debtor's liquidation under the Bankruptcy Law?
The debtor itself, a creditor, or the competent authority.
When can the opening of the liquidation procedure be requested?
If the debtor is distressed or bankrupt, without prejudice to the provisions of the relevant laws.
Is it enough to be a creditor to file the request?
A creditor may file the request, but registering it with the court requires meeting the conditions set in Article 93.
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 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
- Article 95
The article governs notifying the debtor or the creditors of a liquidation request, the right to object, and the option to request an alternative procedure that preserves the debtor's business.
1- إذا تقدم غير المدين بطلب افتتاح إجراء التصفية للمدين، فعلى المحكمة تبليغ المدين به خلال مدة لا تزيد على (خمسة) أيام من تاريخ قيد الطلب. وللمدين أن يعترض أمام
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.