Article 83 of the Saudi Commercial Court Law
المادة 83 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article sets the time limits for a bill holder to demand acceptance or payment, six months or a year depending on the country of drawing, with the right against endorsers lost if the demand is delayed, and the limits doubled in maritime war.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب على حامل السفتجة المسحوبة من سائر بلاد الجزيرة العربية والمملكة المصرية وبلاد السودان والهند البريطانية وبلاد تركيا وسواحل البحر الأبيض المتوسط والبحر الأحمر إذا كانت مستحقة الدفع في المملكة الحجازية حال الاطلاع عليها أو بعد مهلة معينة أن يطالب بقبولها أو دفعها داخل ستة أشهر من تاريخها وإذا كانت مسحوبة من غير ما ذكر من البلدان فيجب عليه أن يطالب داخل سنة كاملة وعين هذه المواعيد تعتبر في السفاتج المسحوبة من المملكة الحجازية المستحقة الدفع في خارجها ويسقط حق حامل السفاتج على المحيلين إذا أخر الطلب عن المواعيد المذكورة في حالة حصول حرب بحرية تضاعف هذه المواعيد
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 83 explained in plain English
This article sets time limits for presenting international bills of exchange for acceptance or payment, applying to bills payable at sight or after a fixed period:
- Six months from their date: for a bill drawn from the rest of the Arabian Peninsula, the Egyptian Kingdom, the Sudan, British India, Turkey, and the coasts of the Mediterranean and the Red Sea, if payable in the Hejaz Kingdom, as the text puts it.
- A full year: if drawn from countries other than these.
- The same limits apply to bills drawn from the Hejaz Kingdom and payable outside it.
The consequence: the right of the bill's holder against the endorsers is lost if the demand is delayed beyond these limits. Note that the text speaks specifically of loss of the right against the endorsers.
The exception: in the event of maritime war, these limits are doubled.
The names of the countries in the text reflect the time it was issued. Article 84 follows, providing that these provisions do not affect contrary conditions agreed between the taker of the bill, its drawer and the endorsers; such conditions are given effect and carried out.
If you hold a bill drawn from or payable abroad, watch the time limits, and consult a lawyer who specializes in commercial paper and international trade.
Practical example
A merchant in Jeddah holds a bill of exchange drawn from Egypt and payable at sight. Under this article, he must demand its acceptance or payment within six months of its date, or his right against the endorsers is lost.
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 83 of the Saudi Commercial Court Law
What is the time limit for presenting a bill drawn from abroad?
Six months from its date for the countries named in the article and a full year for others, and the same limits apply to a bill drawn from inside the Kingdom and payable abroad.
What is the penalty for delaying the demand beyond the limits?
The right of the holder of the bills against the endorsers is lost.
Do the limits change in exceptional circumstances?
Yes. In the event of maritime war, these limits are doubled.
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.