Article 102 of the Saudi Commercial Court Law
المادة 102 من النظام التجاري نظام المحكمة التجارية · الفصل التاسع: في الرجوع
The article bars hearing bill suits after five years from the notice of non-payment or the last hearing, with the defendant or his heirs required to swear to being free of the debt if the claimant asks.
Official text (Arabic)
This article has not been amended since the law was issued.
كل دعوى تتعلق بالسفاتج بأنواعها لا تسمع بعد مضي الخمس سنوات اعتبارا من تاريخ إخطار عدم الدفع أو من يوم آخر مرافعة بالمحكمة إذا لم يصدر فيها حكم أو لم يحصل اعتراف بها، وإنما على المدعى عليه أن يحلف بالمحكمة التجارية يطلب المدعي تأييدا لبراءة ذمته كما أن على ورثته أن يحلفوا بطلبه .
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 102 explained in plain English
This article sets the period after which a suit is not heard on bills, which is one of its most important provisions:
Scope: every suit relating to bills of exchange of all kinds.
The period: five years.
Its start:
- From the date of the notice of non-payment,
- or from the day of the last hearing in court, if no judgment was issued in it or no acknowledgment of it was made.
The effect: the suit is not heard after this period has passed.
The oath: however, the defendant must swear in court, if the claimant asks, to affirm that he is free of the debt. His heirs must also swear at the claimant's request.
The article therefore does not make the passage of time alone enough to protect the defendant if the claimant asks for his oath, but adds the oath to confirm that he is free of the debt. Note that the text makes the heirs' oath also at the claimant's request.
Before it, Article 101 bars making several statements for the re-exchange account of one bill.
Because the period is fairly long but decisive, if you have a right on an unpaid bill, do not delay the claim, and consult a lawyer who specializes in commercial paper.
Practical example
A notice of non-payment was drawn up for a bill in a certain year, and its holder did not bring suit until six years later. Under this article his suit is not heard, but the defendant must swear to affirm that he is free of the debt if the holder asks.
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 102 of the Saudi Commercial Court Law
How long is the limitation period for a suit on a bill of exchange?
No suit relating to bills is heard after five years from the date of the notice of non-payment or from the day of the last hearing if no judgment was issued in it or no acknowledgment of it was made.
Does the defendant swear after the period passes?
Yes. The defendant must swear at the claimant's request to affirm that he is free of the debt, and his heirs must swear at his request.
More articles on Endorsement, Payment and Recourse on the Draft
- Article 51
The article makes the drawer of a bill of exchange and the endorsers who transferred it jointly liable for its acceptance and for payment on time, and jointly bound to pay its holder.
صاحب السفتجة والمحيلون المتناقلون لها مسئولون على وجه التضامن عن القبول والدفع في ميعاده وملزمون لحاملها بالوفاء على وجه التضامن
- Article 57
The article provides that the intervener is not bound to pay the bill's value on the due date except after notice of non-payment has been given within the set time.
لا يجب على المتوسط المذكور دفع قيمة السفتجة في ميعاد استحقاق الدفع إلا بعد عمل الإخطار بعدم الدفع في الميعاد المحدود .
- Article 60
The article provides that ownership of bills of exchange passes from one person to another by transferring them by endorsement on them.
تنتقل ملكية السفاتج من واحد لآخر بتحويلها شرحا عليها .
- Article 61
The article sets the particulars of a bill's transfer: the date, a statement that value has been received, the name and surname of the person to whose order it passes, and the endorser's signature or seal.
يؤرخ تحويل السفتجة ويذكر فيها أن قيمتها وصلت ويبين فيها اسم وشهرة من انتقلت تحت إذنه ويضع المحيل إمضاءه أو ختمه .
- Article 62
The article provides that a transfer of a bill of exchange that does not meet the conditions of Article 61 does not pass ownership but counts as an ordinary authorization to collect its value.
إذا لم يستوف تحويل السفتجة شرائطه المبينة في المادة السابقة فلا يوجب انتقال الملك بل يعد توكيلا اعتياديا في قبض قيمتها .
- Article 63
The article prohibits putting dates in transfers ahead of their true date, and treats that as forgery if it occurs.
تقديم التواريخ في التحاويل عن تاريخها الحقيقي ممنوع وإن حصل يعد ذلك تزويرا .
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.