Article 37 of the Saudi Commercial Courts Law
المادة 37 من نظام المحاكم التجارية · الباب السادس: الطلبات المستعجلة
When hearing urgent applications the court may require a guarantee to compensate the defendant if it appears the plaintiff is not entitled, and compensation is awarded with the judgment on the merits.
Official text (Arabic)
This article has not been amended since the law was issued.
للمحكمة -عند نظر الطلبات المستعجلة- أن تطلب تقديم ضمان لتعويض المدعى عليه متى ظهر أن المدعي غير محق في دعواه، ويحكم بالتعويض مع الحكم في الموضوع.
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 37 explained in plain English
This article deals with protecting the defendant in urgent applications, as it gives the court, when hearing these applications, the power to require a guarantee to compensate the defendant.
This provision has clear elements in the text:
- The time: when hearing urgent applications.
- The power is permissive: the text says "the court may", so requiring a guarantee is left to it and is not mandatory in every application.
- The purpose: to compensate the defendant if it appears that the plaintiff is not entitled in its case.
- When compensation is awarded: compensation is awarded with the judgment on the merits of the case.
The article does not specify the amount or type of the guarantee, or how the compensation is assessed.
This article applies to the urgent applications Article 36 lists, such as a travel ban, precautionary attachment, judicial custodianship and prohibiting disposal. Whoever submits one of these applications should be prepared for the possibility that the court will require a guarantee from him, and should know that it appearing that he was not entitled in his case may result in an award of compensation to the defendant.
Anyone who submits an urgent application or is harmed by one submitted against him is advised to consult a lawyer who specializes in commercial cases.
Practical example
A company in Riyadh requested precautionary attachment of the funds of a supplier it accuses of breaching a contract, and the court required it to provide a guarantee to compensate the supplier. When the merits are decided, if it appears that the company is not entitled in its case, the supplier is awarded compensation along with the judgment on the merits.
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 37 of the Saudi Commercial Courts Law
Must a guarantee be provided when requesting precautionary attachment in the commercial court?
The article leaves that to the court; when hearing urgent applications it may require a guarantee to compensate the defendant, and the text does not make it mandatory in every case.
When is the defendant compensated in an urgent application?
Compensation is awarded with the judgment on the merits, if it appears that the plaintiff is not entitled in its case.
More articles on Urgent Requests
- Article 33
By decision of the Council, a first-instance circuit of a single judge may be formed in the commercial court with jurisdiction over urgent applications and other applications the Council specifies.
يجوز -بقرار من المجلس- أن تؤلف في المحكمة دائرة ابتدائية مكونة من قاضٍ واحد تختص بالنظر في الطلبات المستعجلة، والطلبات الأخرى التي يحددها المجلس.
- Article 34
An urgent application is referred to the competent circuit as soon as it is submitted and decided within 3 working days at most from its referral, and when necessary may be decided without the other party present.
يُحال الطلب المستعجل إلى الدائرة المختصة فور تقديمه، ويُفصل فيه خلال مدة لا تتجاوز (ثلاثة) أيام عمل من تاريخ إحالته، ويجوز -عند الاقتضاء- الفصل في الطلب بحضور م
- Article 35
The article sets out the cases in which a judgment on an urgent application ends, including not bringing the main case within 7 days, and the cases in which any interested person may request its cancellation.
1- ينقضي الحكم الصادر في الطلبات المستعجلة في الحالات الآتية: أ- إذا لم يتقدم من صدر لمصلحته الحكم بدعواه الأصلية خلال (سبعة) أيام من تاريخ صدور القرار. ب- إذا
- Article 36
The article lists the urgent applications before the commercial court, including inspection, travel ban, precautionary attachment and judicial custodianship, in addition to what has urgent character in the commercial laws.
تشمل الطلبات المستعجلة ما يأتي: 1- المعاينة لإثبات الحالة. 2- المنع من السفر. 3- وقف الأعمال الجديدة. 4- الحراسة القضائية. 5- الحجز التحفظي. 6- الحصول على عينة
- Article 80
The article sets the jurisdiction of the appeal circuit composed of a single judge, including objections to payment orders, judgments ending or abandoning the dispute, and urgent rulings of single-judge circuits.
تختص دائرة الاستئناف المكونة من قاضٍ فرد في المحكمة بالنظر في الآتي: 1- الاعتراض على الأحكام والقرارات الصادرة من الدوائر الابتدائية المكونة من قاضٍ فرد المتعلق
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.