Article 86 of the Saudi Commercial Maritime Law
المادة 86 من النظام البحري التجاري · الفصل الثاني: الحجز التنفيذي والبيع الجبري
The compulsory sale of a ship takes place in two sessions seven days apart; the highest bid in the first is accepted provisionally and becomes the base price for the second, and the sale is finally awarded to the highest bidder.
Official text (Arabic)
This article has not been amended since the law was issued.
يحصل البيع بعد جلستين تفصل بينهما سبعة أيام، ويُقبل أكبر عطاء في الجلسة (الأولى) بصفة مؤقتة، ويتخذ ثمناً أساسيًّا للمزايدة في الجلسة (الثانية) التي يقع البيع الجبري فيها نهائيًّا للمزايد الذي قدم عطاءً أعلى في الجلستين.
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 86 explained in plain English
This article regulates how the auction for the compulsory sale of a ship is conducted, in two stages:
- The first session: the highest bid is accepted provisionally, so the sale is not yet complete.
- A period of seven days separates the two sessions.
- The second session: the highest bid in the first session is taken as the base price for the bidding, and the sale is made finally to the bidder who offered the highest bid across the two sessions.
The aim of the two sessions is to give other bidders a chance to come in and raise the price, achieving the best possible price in the interest of the debtor and the creditors.
This is preceded by Article 85, which requires the judge to fix the base price, the conditions of sale and the auction days. Article 87 deals with the case where no bid is made on the appointed day, in which the court fixes a new, lower base price. Anyone wishing to take part in a ship auction should consult a lawyer who specializes in enforcement and maritime law.
Practical example
At an auction of a fishing vessel in Jazan, Ahmed made the highest bid in the first session and it was accepted provisionally. Seven days later the second session began from his bid, and another bidder offered a higher bid, so the sale was finally awarded to him.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 86 of the Saudi Commercial Maritime Law
How many sessions does a ship auction have?
Two sessions, separated by seven days.
Is the sale awarded to the highest bidder in the first session?
His bid is accepted only provisionally, and the sale is finally made in the second session to the bidder who offered the highest bid across the two sessions.
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.