Article 77 of the Saudi Commercial Maritime Law
المادة 77 من النظام البحري التجاري · الفصل الأول: الحجز التحفظي
If the charterer manages the ship's navigation and alone is liable for the maritime debt, the ship or the charterer's other ships may be attached, but not the other ships of the lessor-owner.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا كان مستأجر السفينة يتولى إدارتها الملاحية، وكان وحده مسؤولاً عن أي دين بحري متعلق بها، جاز للدائن توقيع الحجز على هذه السفينة أو على أي سفينة أخرى مملوكة للمستأجر، ولا يجوز توقيع الحجز على أي سفينة أخرى للمالك المؤجر بمقتضى ذلك الدين البحري.
2- تسري أحكام الفقرة (1) من هذه المادة على جميع الحالات التي يكون فيها شخص آخر غير مالك السفينة مسؤولاً عن دين بحري.
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 77 explained in plain English
This article deals with the case where the person liable for the maritime debt is not the ship's owner, the most obvious example being the charterer.
If the charterer of a ship manages its navigation and is solely liable for the maritime debt relating to it, the creditor may:
- attach that ship itself, or
- attach any other ship owned by the charterer.
But no other ship of the lessor-owner may be attached for this debt, because the owner is not the debtor.
The second paragraph extends this rule to all cases in which a person other than the owner is liable for a maritime debt. This differs from the general rule in Article 76, which permits attachment of any other ship "owned by the debtor"; here the debtor is the charterer, so it is the charterer's own ships that are targeted. Owners of chartered-out ships and creditors of charterers should consult a lawyer who specializes in maritime and commercial law.
Practical example
A company chartered a ship from its owner and took over its navigation, and then ran up a debt to a fuel supplier. The supplier may attach the chartered ship or another ship owned by the chartering company, but not another ship owned by the lessor.
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 77 of the Saudi Commercial Maritime Law
Can the owner's other ships be attached for the charterer's debt?
No. If the charterer manages the navigation and alone is liable for the debt, other ships of the lessor-owner may not be attached.
Which ships may be attached for the charterer's debt?
The chartered ship itself, or any other ship owned by the charterer.
More articles on Precautionary and Executory Attachment of Ships
- Article 44
The article provides that if shares representing more than half the ship are attached, the judicial sale covers the whole ship, though the court may limit it to the attached shares for serious reasons at the request of an owner whose shares were not attached.
إذا وقع الحجز على حصص تمثل أكثر من نصف السفينة شمل البيع القضائي السفينة بأكملها. ومع ذلك يجوز أن تأمر المحكمة -بناءً على طلب أحد المالكين الذين لم يحجز على حصص
- Article 67
Mortgagee creditors may pursue the mortgaged ship into any hands and apply for a precautionary attachment, and the ship may not be disposed of once the attachment report is registered in the ship register.
الدائنون المرتهنون لسفينة، أو لجزء منها، يتتبعونها في أي يد كانت، ولهم حق التقدم بطلب الحجز التحفظي عليها، ولا يجوز التصرف في السفينة المرهونة بعد قيد محضر حجزه
- Article 68
If half of the ship or less is mortgaged, the creditor may attach and sell only the mortgaged part; if more than half, the court may order the sale of the whole ship, and co-owners must be notified fifteen days before the sale.
1- إذا كان الرهن واقعاً على جزء لا يزيد على نصف السفينة فليس للدائن إلا حجز هذا الجزء وبيعه، وإذا كان الرهن واقعاً على أكثر من نصف السفينة جاز للمحكمة -بناء على
- Article 69
Carrying out a court order for the sale of the ship clears it of all mortgages, and the rights of mortgagee creditors shift from the ship to its price.
يترتب على تنفيذ الأمر القضائي بالبيع تطهير السفينة من جميع الرهون، وتنتقل حقوق الدائنين إلى الثمن.
- Article 70
If ownership of the mortgaged ship has passed before the attachment report is registered, the creditor notifies the possessor of the attachment and demands the price; the possessor may avoid attachment and sale by notifying the registered creditors within the period and stating his readiness to pay.
1- إذا انتقلت ملكية السفينة المرهونة، أو بعضها -قبل قيد محضر الحجز- فعلى الدائن المرتهن الذي اتخذ إجراءات التنفيذ على السفينة أن يبلغ الحائز للسفينة بمحضر الحجز
- Article 71
When ownership of a mortgaged ship has passed under Article 70, each creditor may request its sale by judgment of the competent court with a guarantee for the price and expenses, and the request is notified to the possessor within ten days.
1- يجوز لكل دائن في الحالة المبينة في المادة (السبعين) أن يطلب بيع السفينة أو جزء منها بحكمٍ من المحكمة المختصة، مع تقديم كفالة بالثمن والمصروفات، وتكليف الحائز
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.