Article 88 of the Saudi Commercial Court Law
المادة 88 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article allows a bill holder, after notices of non-payment and non-acceptance, to claim against the drawer and endorsers individually or together, then bring suit within fifteen days.
Official text (Arabic)
This article has not been amended since the law was issued.
يحق لحامل السفتجة بعد عمل إخطار عدم الدفع وإخطار عدم القبول أن يطالب الساحب وكل واحد من المحيلين بالانفراد أو جميعهم أو بعضهم ولكل واحد من المحيلين هذا الحق بالنسبة إلى من قبله وتكون هذه المطالبة بعمل الإخطار، فإن لم يحصل دفع القيمة تقام الدعوى في المحكمة التجارية داخل خمسة عشر يوما من تاريخ سند استلام الإخطار وتزاد على هذه المدة مدة المسافة التي بين حامل السفتجة ومجلس التجارة .
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 88 explained in plain English
This article regulates the right of recourse of the holder of a bill of exchange after giving notice of non-payment and notice of non-acceptance.
Who may be claimed against: the holder is entitled to claim against the drawer and each of the endorsers:
- individually,
- or all of them,
- or some of them.
Each of the endorsers has this right in relation to those before him.
How: this claim is made by giving notice.
The suit: if the value is not paid after the claim, suit is brought, the text naming the commercial court, within fifteen days of the date of the instrument acknowledging receipt of the notice. Travel time is added to this period between the holder of the bill and the commercial council.
The article thus gives the holder flexibility in choosing whom to claim against, but binds them to a short period for bringing suit. Article 89 follows, setting different time limits for claiming against drawers and endorsers for bills drawn from the Hejaz Kingdom and payable abroad. Before it, Article 87 shows that notice of non-acceptance does not replace notice of non-payment.
Because the fifteen-day period is short, it is advisable to consult a lawyer who specializes in commercial paper as soon as the notice is received.
Practical example
After the notices of non-acceptance and non-payment, the holder of a bill in Riyadh claims by notice against the drawer and one endorser, but neither pays. Under this article, the holder must bring suit within fifteen days of the date of the instrument acknowledging receipt of the notice, with travel time added if any.
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 88 of the Saudi Commercial Court Law
Whom can the holder of a bill claim against after the protest?
The drawer and each of the endorsers, individually, all of them or some of them, and each endorser has this right in relation to those before him.
What is the period for suing on a bill of exchange?
Within fifteen days of the date of the instrument acknowledging receipt of the notice, with the travel time between the holder and the commercial council added.
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.