Article 52 of the Saudi Commercial Court Law
المادة 52 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article provides that when the drawee refuses to accept a bill of exchange, a notice (protest) is drawn up by the notary public's office, and it suffices to prove the refusal.
Official text (Arabic)
This article has not been amended since the law was issued.
عند امتناع قبول المحول عليه للسفتجة يحرر له الإخطار المعبر عنه ( بالبروتثو ) من دائرة كاتب العدل ويكون كافيا لإثبات الامتناع .
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 52 explained in plain English
This article deals with how to prove the drawee's refusal to accept a bill of exchange. If the drawee refuses to accept:
- A notice, called a "protest", is drawn up against the drawee.
- It is drawn up by the notary public's office.
- This notice is sufficient to prove the refusal.
The practical importance of this notice is that it turns the refusal into a fact established by an official document, so the holder does not need other means of proof. It is a basis on which the following rights are built: under Article 51, the owner of the bill and the endorsers who transferred it are jointly liable for acceptance. And Article 53 gives the holder of the bill, after producing the instrument of the notice, the right to demand from the endorser a guarantor who guarantees the value of the bill on the set date.
The article does not specify a time limit for drawing up the notice or its fees, so nothing can be inferred from it on that.
If the drawee refuses to accept a bill you hold, act quickly to learn the correct procedure, and it is advisable to consult a lawyer specializing in commercial paper.
Practical example
A company in Riyadh presented a bill of exchange to the drawee, who refused to accept it. The company went to the notary public's office, which drew up a notice of non-acceptance against the drawee, and this notice became sufficient to prove the refusal.
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 52 of the Saudi Commercial Court Law
How do I prove the drawee's refusal to accept a bill of exchange?
A notice called a protest is drawn up against the drawee by the notary public's office, and it is sufficient to prove the refusal.
What is a protest for?
It proves the refusal, and after producing its instrument the holder, under Article 53, may demand from the endorser a guarantor who guarantees the value of the bill.
More articles on The Draft and Bill of Exchange and Acceptance
- Article 42
The article sets the details required in a bill of exchange (safta): date, amount, drawee's name, date and place of payment, reason for the value and its receipt, and drawer's signature, and the rule for multiple copies.
سندات الحوالة أي السفاتج التي تسحب من محل على آخر يجب أن تؤرخ ويوضح فيها المبالغ المحولة واسم الشخص المحال عليه وتاريخ ومكان الدفع ويبين فيها أنها قيمة بضاعة أو
- Article 43
The article allows a bill of exchange to be drawn on one person with a condition that it be paid at the place of another person, and also allows it to be drawn at the order of a person on his account.
يجوز أن تسحب السفاتج على شخص ويشترط فيها الدفع في محل شخص آخر كما يجوز سحبها بأمر شخص على ذمته
- Article 44
The article provides that bills of exchange drawn contrary to the preceding conditions are considered only ordinary instruments.
السفاتج المحررة على خلاف الشروط الآنفة الذكر لا تعتبر إلا كسندات عادية .
- Article 45
The article requires that, when the payment date falls due, the drawee owe the transferor or the person who ordered the drawing an amount not less than the value of the bill.
عند حلول أجل دفع قيمة السفاتج يجب أن يكون في ذمة المحال عليه للمحيل أو للآمر بالسحب مبلغ لا يقل عن قيمة السفتجة .
- Article 46
The article makes acceptance sufficient proof that the acceptor owes the funds covering payment, and requires the drawer to prove the existence of the cover if it is denied, failing which the drawer guarantees the bill's value to the holder.
الشرح على السفتجة بالقبول دليل كاف على أن القابل مدين للساحب أو الآمر بالسحب بما يقابل الوفاء وعلى الساحب وحده أن يثبت في حالة الإنكار أو الامتناع عن الدفع بعد
- Article 47
The article regulates the holder's right to the cover for payment when the drawer goes bankrupt after acceptance, and when the drawee goes bankrupt after accepting, depending on the nature of the cover.
إذا أفلس الساحب بعد قبول المحال عليه ولو قبل حلول أجل الدفع فلحامل السفتجة دون غيره من غرماء الساحب الحق في استلام مقابل الوفاء الذي عند المسحوب عليه وإذا أفلس
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.