Article 96 of the Saudi Bankruptcy Law
المادة 96 من نظام الإفلاس · الفصل الخامس: إجراء التصفية: إجراءات تحفظية
The article allows the court, on its own motion or at the request of an interested party, to order any precautionary measure after a liquidation request is registered, as the Implementing Regulations provide.
Official text (Arabic)
This article has not been amended since the law was issued.
للمحكمة من تلقاء نفسها أو بناء على طلب ذي مصلحة أن تأمر بعد قيد طلب افتتاح إجراء التصفية باتخاذ أي إجراء تحفظي، وفقاً لما تحدده 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 96 explained in plain English
Some time may pass between the registration of a request to open the liquidation procedure and the court's judgment on it. To protect the position during this period, this article gives the court the power to order precautionary measures.
Elements of the provision:
- Who sets the measure in motion: The court on its own motion, or at the request of any interested party.
- When: After the request to open the liquidation procedure is registered.
- What may be ordered: Any precautionary measure.
- Controls: As the Implementing Regulations specify.
The article does not specify the types of precautionary measures or their detailed conditions, but refers them to the Implementing Regulations, which must be consulted to know what can be requested and how.
This article is connected to what follows it: Article 97 provides that registering a request to open liquidation, or the judgment opening it, suspends claims, and makes any act contrary to that void. Article 95 before it governs notifying the debtor or the creditors of the request and objecting to it.
To assess a particular situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
After a request to liquidate a trading establishment in Makkah is registered, a creditor notices that the establishment has begun moving goods out of its warehouse. As an interested party, this creditor may ask the court to order a precautionary measure as the Implementing Regulations specify, and the court may also order one on its own motion.
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 96 of the Saudi Bankruptcy Law
Can a precautionary measure be requested before the judgment opening liquidation?
Yes. After a request to open liquidation is registered, the court may order any precautionary measure on its own motion or at the request of an interested party.
What types of precautionary measures are permitted?
The article does not specify them, but provides that this is as the Implementing Regulations specify.
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.