Article 89 of the Saudi Commercial Maritime Law
المادة 89 من النظام البحري التجاري · الفصل الثاني: الحجز التنفيذي والبيع الجبري
A judgment awarding a ship auction may be challenged only for a defect in the bidding procedures or in the form of the judgment, within fifteen days of its issuance.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز الطعن في حكم ترسية المزاد إلا لعيب في إجراءات المزايدة أو في شكل الحكم، ويكون الطعن خلال خمسة عشر يوماً من تاريخ صدور الحكم.
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 89 explained in plain English
This article narrows the grounds for challenging the judgment awarding the auction of a ship, in order to preserve the stability of the compulsory sale and reassure buyers. A challenge is allowed only on one of two grounds:
- a defect in the bidding procedures, or
- a defect in the form of the judgment.
An objection to the substance of the debt or to the amount of the price at which the auction was awarded is not among the grounds for challenge that the article mentions.
The period: the challenge must be made within fifteen days of the date the judgment was issued. Note that the period here runs from the date of issuance of the judgment, not from the date of notification of it.
This is linked to Article 88, which requires the person to whom the auction is awarded to pay 20% at once and the balance within seven days, and to Article 90, which regulates claims of entitlement and nullity of the attachment. Because the grounds for challenge are limited and the period is short, anyone who sees a defect in the bidding should consult a lawyer who specializes in enforcement and maritime law quickly.
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 89 of the Saudi Commercial Maritime Law
When may the award of a ship auction be challenged?
Only for a defect in the bidding procedures or in the form of the judgment.
What is the time limit for challenging the judgment awarding the auction?
Fifteen days from the date the judgment was issued.
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.