Article 24 of the Saudi Finance Lease Law

المادة 24 من نظام الإيجار التمويلي

The article makes the competent court the body that decides disputes under the Finance Lease Law and its Regulations, examines their violations and imposes the penalties provided.

Official text (Arabic)

This article has not been amended since the law was issued.

تتولى المحكمة المختصة الفصل في المنازعات الناشئة من تطبيق أحكام هذا النظام ولائحته، والنظر في مخالفات أحكامهما وإيقاع العقوبات المنصوص عليها في هذا النظام.

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 24 explained in plain English

This article sets which body to turn to in a finance lease dispute, which is the competent court, and it handles three tasks:

Deciding disputes arising from applying the provisions of the Law and its Regulations, such as a dispute over rent, maintenance, loss or delivery of the asset.
Examining violations of the provisions of the Law and its Regulations.
Imposing the penalties provided in the Law.

The article did not name a particular court, but used the phrase "the competent court", so it is determined by the rules of judicial jurisdiction in force. What matters is that this judicial body has jurisdiction over disputes, violations and penalties together.

This article is linked to Article 23, which gives the lessee, on the lessor's bankruptcy or liquidation, the option of continuing the contract or returning the asset with the consent of the bankruptcy trustee or liquidator. It is also linked to Article 25, which allows the lessor to submit an application to the competent court for a judgment to deliver the leased fixed assets, to be decided within a maximum of 30 days of its submission, and regulates recovery of movable assets.

Before filing any case, it is advisable to gather the contract, receipt records, proof of payment and correspondence. To find out which court has jurisdiction over your dispute and how to file a case, you can consult a lawyer specializing in banking, finance and finance lease cases.

Practical example

Reem leased equipment for a beauty salon in Riyadh under a finance lease, then disagreed with the lessor company over who bears the repair of a major fault. This is a dispute arising from applying the provisions of the Finance Lease Law, so the competent court decides it.

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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