Article 84 of the Saudi Commercial Papers Law
المادة 84 من نظام الأوراق التجارية · الفصل العاشر: عدم سماع الدعوى
The Article sets the periods after which bill claims are not heard: three years against the acceptor, one year for the holder's claims against the drawer and endorsers, and six months for endorsers' claims.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بحقوق الحامل المستمدة من علاقته الأصلية بمن تلقى عنه الكمبيالة، لا تسمع الدعوى الناشئة عن الكمبيالة تجاه قابلها بعد مضي ثلاث سنوات من تاريخ الاستحقاق ولا تسمع دعاوى الحامل تجاه الساحب أو المظهرين بعد مضي سنة من تاريخ الاحتجاج المحرر في الميعاد النظامي أو من تاريخ الاستحقاق إن اشتملت على شرط الرجوع بلا مصروفات أو بدون احتجاج، ولا تسمع دعاوى المظهرين بعضهم تجاه بعض أو تجاه الساحب بعد مضي ستة شهور من اليوم الذي وفى فيه المظهر الكمبيالة أو من يوم إقامة الدعوى عليه.
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 84 explained in plain English
This Article sets the periods after which a claim arising from a bill of exchange is no longer heard. The period differs according to the party against whom the claim is brought:
- Claim against the acceptor: not heard after three years from the due date.
- Holder's claims against the drawer or endorsers: not heard after one year from the date of the protest made within the legal period, or from the due date if the bill contains a clause of recourse without expenses or without protest.
- Claims of endorsers against one another or against the drawer: not heard after six months from the day on which the endorser paid the bill, or from the day the claim was brought against that endorser.
Important reservation: the Article begins with the words "without prejudice to the holder's rights derived from the holder's original relationship with the person from whom the holder received the bill." In other words, these periods relate to the claim arising from the bill itself and do not prejudice any rights the holder may have derived from the holder's original relationship with the person from whom the bill was received. The conditions and periods of those rights are not addressed by this Article.
Article 85 explains when these periods do not run: where a claim is brought, they run only from the day of the last procedural step in it, and they do not run if a judgment was issued for the debt or the debtor acknowledged it in a separate document in a way that results in renewal of the debt. This differs from the forfeiture established by Article 83 for the holder's negligence in presenting the bill or making a protest within the prescribed periods.
Because the calculation of these periods directly affects whether a claim is heard, it is advisable to consult a lawyer who specializes in commercial matters and commercial papers early.
Practical example
A business in Riyadh accepted a bill of exchange, and more than three years passed from its due date without the holder bringing a claim, and without any judgment for the debt or any acknowledgment renewing it. Under this Article, the holder's claim arising from the bill against the business is not heard, without prejudice to the holder's rights derived from the holder's original relationship with the person from whom the bill was received.
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 84 of the Saudi Commercial Papers Law
What is the limitation period for a bill of exchange in Saudi Arabia?
A claim against the acceptor is not heard after 3 years from the due date, the holder's claims against the drawer or endorsers after 1 year, and endorsers' claims against one another or against the drawer after 6 months, each counted from the starting points set by the Article.
From when is the one-year period for the holder's claim against endorsers counted?
From the date of the protest made within the legal period, or from the due date if the bill contains a clause of recourse without expenses or without protest.
Is my right lost entirely once the period for bringing a bill claim has passed?
The Article states that it does not prejudice the holder's rights derived from the holder's original relationship with the person from whom the bill was received. To assess these rights in your case, it is advisable to consult a specialized lawyer.
More articles on Loss of Holder's Rights and Limitation of Claims
- Article 64
Article 64 extends the time limits for presenting a bill and making a protest in case of force majeure, obliges the holder to give notice, and allows recourse without presentment or protest if the event lasts more than 30 days.
إذا حال حادث قهري لا يمكن التغلب عليه دون تقديم الكمبيالة أو عمل الاحتجاج في المواعيد المقررة لذلك امتدت هذه المواعيد. وعلى حامل الكمبيالة أن ينبه دون إبطاء من
- Article 83
The Article makes a negligent holder lose rights against the drawer, endorsers and others except the acceptor once presentment or protest periods lapse, and limits the drawer's benefit to proof that cover was provided.
يفقد الحامل حقوقه الناشئة عن الكمبيالة قبل ساحبها ومظهريها وغيرهم من الملتزمين عدا قابلها بمضي المواعيد المقررة لإجراء ما يأتي: أ - تقديم الكمبيالة المستحقة الو
- Article 85
The Article provides that the bar periods for bill claims run from the last procedural step once a claim is brought, and do not run if a judgment is issued for the debt or the debtor acknowledges it in a way that renews it.
لا تسري المواعيد المذكورة في المادة السابقة في حالة إقامة الدعوى إلا من يوم آخر إجراء فيها ولا تسري هذه المواعيد إذا صدر حكم بالدين أو أقر به المدين في ورقة مست
- Article 86
The Article, as published, provides that interruption of the periods has no effect except as regards the person against whom the step interrupting them was taken.
لا يكون لانقطاع المواعيد أثر بالنسبة لمن اتخذ قبله الإجراء القاطع لهذه المواعيد.
- Article 115
The Article makes a check holder lose rights against the drawer, endorsers and others except the drawee if the presentment or protest periods lapse, with the drawer benefiting only on stated conditions.
يفقد حامل الشيك ما له من حقوق قبل الساحب والمظهرين وغيرهم من الملتزمين -عدا المسحوب عليه- بمضي المواعيد المحددة لتقديم الشيك إلى المسحوب عليه أو لعمل الاحتجاج أ
- Article 116
The Article bars recourse claims by the check holder against those liable six months after the presentment period ends, and claims among those liable six months after payment or the start of the claim.
لا تسمع دعاوى رجوع الحامل على المسحوب عليه والساحب والمظهر وغيرهم من الملتزمين بعد مضي ستة شهور من تاريخ انقضاء ميعاد تقديم الشيك، ولا تسمع دعاوى رجوع الملتزمين
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.