Article 75 of the Saudi Commercial Court Law
المادة 75 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article permits the person entitled to a lost bill of exchange, whether or not it bears the form of acceptance, and no other copy of which can be produced, to claim its value before the Commercial Court, and obtain it by the court's order after proving ownership and giving a temporary guarantor.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا ضاعت السفتجة سواء كان عليها صيغة القبول أم لا ، ولم يمكن تقديم نسخة أخرى منها يجوز لمستحقها أن يطالب لدى المحكمة التجارية بقيمة السفتجة الضائعة ويتحصل عليها بأمر المحكمة بعد إثبات ملكيته لها ، وإعطاء كفيل ضامن كفالة مؤقتة إلى ثلاث سنوات.
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 75 explained in plain English
This article deals with the hardest cases of loss: the loss of a bill of exchange, whether or not it bears the form of acceptance, where no other copy of it can be produced.
In this case the person entitled to it may:
- claim before the court the value of the lost bill, the text naming the Commercial Court.
- and obtain it by the court's order.
On two conditions:
- proving his ownership of it.
- giving a guarantor with a temporary guarantee of up to three years.
The route here is judicial, because there is no paper to rely on. The person entitled therefore bears the burden of proving ownership, and provides a guarantor who protects the debtor if the lost bill appears in the hands of another.
This article differs from Article 74 before it, which deals with the loss of an accepted bill where another copy exists that can be claimed on after producing a guarantor and an order from the Commerce Council. Article 76 follows, giving the owner of a lost bill the right to ask his endorser to help in obtaining another copy.
The article does not set out the means of proving ownership. Anyone who has lost a bill with no replacement copy is therefore advised to consult a lawyer specializing in commercial paper.
Practical example
A merchant in Dammam lost his only bill of exchange, and it had no other copies. Under this article he may claim its value before the court, and obtain it by the court's order after proving his ownership of it and producing a guarantor with a temporary guarantee of up to three years.
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 75 of the Saudi Commercial Court Law
What should I do if a bill of exchange is lost and there is no other copy?
The person entitled may claim its value before the court and obtain it by the court's order after proving ownership and giving a temporary guarantor for up to three years.
Does the ruling differ if the bill was accepted?
No. The article covers a lost bill whether or not it bears the form of acceptance.
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.