Article 78 of the Saudi Commercial Court Law
المادة 78 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article bars the commercial court from granting a period of grace of its own for paying the value of a bill of exchange.
Official text (Arabic)
This article has not been amended since the law was issued.
ليس لمحكمة التجارة أن تعطي مهلة من عندها لدفع قيمة السفتجة
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 78 explained in plain English
This article lays down a rule that protects the holder of a bill of exchange and keeps its due dates strict: the commercial court may not grant a period of grace of its own for paying the value of a bill of exchange.
"Of its own" means that the court has no power, on its own initiative or at the debtor's request, to give an additional term other than the term fixed in the bill. The due dates in a bill of exchange stand as written in it, and are not extended by a judicial decision.
The reason is that a bill of exchange is an instrument of payment on which merchants rely, and its value lies in the certainty of its payment date. Were the court able to grant periods of grace, confidence in the bill would weaken and the chain of obligations among the drawer, endorsers and holder would suffer.
The text speaks of a period of grace the court gives "of its own," and does not address the parties themselves agreeing to postpone payment, so no rule on that is to be inferred from it.
This article follows Article 77, which bars the holder from refusing partial payment and requires notice of the balance, and precedes Article 79, which allows any intervening person to pay the value of the bill on behalf of the drawer or one of the endorsers after the necessary notice is given.
If you owe on a bill of exchange and face difficulty paying, consult a lawyer who specializes in commercial paper early.
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 78 of the Saudi Commercial Court Law
Can the court give a debtor time to pay a bill of exchange?
No. The commercial court may not grant a period of grace of its own for paying the value of a bill of exchange.
Does the text prevent the parties agreeing on postponement?
The text speaks of the period of grace the court gives of its own, and does not address the parties' agreement.
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.