Article 87 of the Saudi Commercial Maritime Law
المادة 87 من النظام البحري التجاري · الفصل الثاني: الحجز التنفيذي والبيع الجبري
If no bid is made on the day of the ship sale, the competent court fixes a new base price lower than the first and appoints a bidding day, following the announcement procedures set by the regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم يُقدم عطاء في اليوم المعين للبيع تحدد المحكمة المختصة ثمناً أساسيًّا جديداً أقل من الأول، ويعين اليوم الذي تحصل فيه المزايدة، وتتبع إجراءات الإعلان التي تحددها اللوائح.
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 87 explained in plain English
This article deals with the case where no bidder comes forward on the appointed day for the sale of the ship. In that case:
- The competent court fixes a new base price lower than the first.
- It appoints the day on which the new bidding takes place.
- The announcement procedures set by the regulations are followed.
The logic is that the absence of bids may mean the first base price was too high, so it is lowered to attract buyers so that the ship can be sold and the debts paid.
The article does not specify the percentage or amount of the reduction, so it is for the court to determine. It also refers the announcement procedures to the regulations without detailing them here.
This provision is linked to Article 86, which makes the sale take place in two sessions seven days apart, the highest bid in the first being accepted provisionally and the sale finally made in the second. Article 88 regulates the obligations of the person to whom the auction is awarded. To follow the auction procedures, consult a lawyer who specializes in enforcement and maritime law.
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 87 of the Saudi Commercial Maritime Law
What happens if nobody comes forward to buy the ship at the auction?
The competent court fixes a new base price lower than the first and appoints a bidding day.
How is the new auction announced?
The announcement procedures set by the regulations are followed.
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.