Article 92 of the Saudi Commercial Court Law
المادة 92 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article cuts off the bill holder's right against the endorsers if the time limits for presenting the bill, giving notice, or bringing suit and making the claim have passed, so his suit is not heard.
Official text (Arabic)
This article has not been amended since the law was issued.
لا حق لحامل السفتجة على المحيلين إذا مضت المواعيد المقررة لتقديم السفتجة أو مواعيد عمل الإخطار أو مواعيد تقديم الدعوى والمطالبة فلا تسمع دعواه .
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 92 explained in plain English
This article sets the consequence of missing time limits for the holder of a bill in his relationship with the endorsers. He has no right against them if any of the following time limits has passed:
- The time limits set for presenting the bill.
- The time limits for giving notice.
- The time limits for bringing suit and making the claim.
The result: his suit is not heard.
The article thus gathers in one rule all the time limits the Law has set, and makes missing any of them cut off the holder's right against the endorsers. The reason is that endorsers are guarantors, not original debtors, so they deserve to be claimed against within a known time and not left hanging.
Note that the text speaks of the holder's right against the endorsers, and does not address his right against others.
Before it, Article 91 provides that each endorser has the right to claim against whomever he has recourse to within the same time limits, starting from the date suit is brought against him. Article 93 follows, barring recourse against the drawer if it is proven that he had funds to cover payment with the drawee at the time of maturity.
Because missing a single time limit can cut off the right against the endorsers, the holder of a bill should consult a lawyer who specializes in commercial paper early.
Practical example
The drawee refuses to pay a bill held by a holder in Riyadh, but the holder does not give notice within the time limit. Under this article he has no right against the endorsers, and his suit against them is not heard.
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 92 of the Saudi Commercial Court Law
When does the right of a bill holder against the endorsers lapse?
If the time limits set for presenting the bill, the time limits for giving notice, or the time limits for bringing suit and making the claim have passed.
What is the effect of the lapse of the right?
His suit against the endorsers is not heard.
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.