Article 93 of the Saudi Bankruptcy Law
المادة 93 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: طلب افتتاح إجراء التصفية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 لدى المحكمة إلا بعد استيفاء الشروط الآتية:
أ- أن يكون الدين حال الأجل ومحدد المقدار والسبب والضمانات المقررة له (إن وجدت).
ب- ألا يقل مقدار الدين -أو مجموع مقدار ديون المتقدمين بالطلب- عن المبلغ الذي تحدده لجنة الإفلاس.
ج- أن يكون الدين المطالب بسداده مستحقاً بموجب سند تنفيذي، أو مستحقاً بموجب ورقة عادية، وأن يثبت الدائن أنه طلب من المدين سداده قبل (ثمانية وعشرين) يوماً من تاريخ قيد الطلب ولم يسدد أو ينازع في الدين، وذلك وفقاً لما تبينه اللائحة.
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 93 explained in plain English
This article explains when a request to open the liquidation procedure is registered with the court, that is, when it is accepted for filing so that it can be considered.
The general condition for every request: It must be accompanied by the relevant information and documents the Implementing Regulations specify.
Additional conditions where the applicant is one or more creditors:
- The debt must be due, and fixed in amount, cause and any security provided for it.
- The amount of the debt, or the total of the debts of those filing the request, must not be less than the amount the Bankruptcy Committee sets; several creditors may therefore combine their debts to reach this threshold.
- The debt must be owed under an enforceable instrument or an ordinary document, and the creditor must prove that it demanded payment from the debtor 28 days before the date the request was registered and that the debtor neither paid nor disputed the debt, as the Implementing Regulations set out.
The article does not state the minimum amount of the debt, leaving it to be set by the Bankruptcy Committee, and also leaves the details of the documents and the way of proving the claim to the Implementing Regulations.
Article 94 completes this provision: a creditor's request is not registered if the debtor disputed the debt before the request was filed. Article 92 sets out who may file the request in the first place. To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
Three suppliers in Riyadh hold due debts under invoices against a factory that has stopped paying, and the debt of each alone does not reach the amount set by the Bankruptcy Committee. They may file a single request together if the total of their debts reaches that amount, provided that each proves it demanded payment from the factory 28 days before the request was registered and the factory neither paid nor disputed the debt.
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 93 of the Saudi Bankruptcy Law
What are the conditions for accepting a creditor's request to liquidate the debtor?
The debt must be due and fixed, not less than the amount the Bankruptcy Committee sets, and owed under an enforceable instrument or an ordinary document, with proof of a demand for payment from the debtor 28 days earlier and no payment or dispute.
Can more than one creditor combine their debts to request liquidation?
Yes. What counts is that the amount of the debt, or the total of the debts of those filing the request, is not less than the amount the Bankruptcy Committee sets.
How long before filing must I demand payment from the debtor?
The creditor must prove it demanded payment from the debtor 28 days before the date the request was registered, as the Implementing Regulations set out.
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 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.