Article 38 of the Saudi Law of Sharia Procedure
المادة 38 من نظام المرافعات الشرعية · الباب الثاني: الاختصاص
Claims concerning companies, associations and private institutions are filed in the court of their administrative center, and may be filed with the branch's court on matters relating to that branch.
Official text (Arabic)
This article has not been amended since the law was issued.
تقام الدعوى المتعلقة بالشركات أو الجمعيات القائمة أو التي في دور التصفية أو المؤسسات الخاصة في المحكمة التي يقع في نطاق اختصاصها مركز إدارتها، سواء كانت الدعوى على الشركة أو الجمعية أو المؤسسة، أو من الشركة أو الجمعية أو المؤسسة على أحد الشركاء أو الأعضاء، أو من شريك أو عضو على آخر، ويجوز رفع الدعوى إلى المحكمة التي يقع في نطاق اختصاصها فرع الشركة أو الجمعية أو المؤسسة، وذلك في المسائل المتعلقة بهذا الفرع.
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 38 explained in plain English
This article sets the court with territorial jurisdiction in claims concerning companies, associations and private institutions, whether existing or in liquidation. The test here is their administrative center, not the place of residence of the persons.
The rule covers different types of claims:
- A claim filed against the company, association or institution.
- A claim filed by the company, association or institution against one of the partners or members.
- A claim filed by a partner or member against another partner or member.
In all these cases the claim is filed in the court within whose jurisdiction the administrative center falls. In addition, the claim may be filed with the court within whose jurisdiction a branch of the company, association or institution falls, but only on matters relating to that branch.
This rule is similar to what Article 37 provides for government bodies, tying jurisdiction to the head office while allowing filing with the branch's court. Article 39 sets out exceptions to the general rule in Article 36 for maintenance claims, marital matters and traffic accidents.
The article sets only the competent place. Anyone with a dispute with a company or between partners would do well to consult a lawyer specializing in commercial and company matters before filing his claim.
Practical example
Two partners in a company whose administrative center is in Riyadh have a disagreement over their rights in the company, though one of them lives in Taif. Under this article the claim between them is filed in the court within whose jurisdiction the company's administrative center in Riyadh falls, not in the city where either of them lives.
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 38 of the Saudi Law of Sharia Procedure
Where do I file a claim against a company?
In the court within whose jurisdiction the company's administrative center falls; it may be filed with the court of the company's branch if the claim concerns matters relating to that branch.
Does the rule apply to a company in liquidation?
Yes. The article provides that it covers existing companies and associations or those in liquidation.
Where is a claim between two partners filed?
In the court within whose jurisdiction the company's administrative center falls, because the article covers a claim by one partner against another.
More articles on Judicial Jurisdiction
- Article 10
The article bars transferring a case properly filed before a competent court to another court or body, or withdrawing it before judgment, and treats the case as filed from the date of its registration.
لا يجوز نقل أي قضية رفعت بطريقة صحيحة لمحكمة مختصة إلى محكمة أو جهة أخرى، ولا يحق لأحد سحبها منها قبل الحكم فيها، وتعد القضية مرفوعة من تاريخ قيدها في المحكمة.
- Article 19
The article provides that a person residing outside the Kingdom is served by sending the copy to the Ministry of Foreign Affairs for diplomatic delivery, and a reply confirming it reached him is sufficient.
إذا كان مكان إقامة الموجه إليه التبليغ خارج المملكة فترسل صورة التبليغ إلى وزارة الخارجية لتوصيلها بالطرق الدبلوماسية، ويكتفى بالرد الذي يفيد وصول الصورة إلى ال
- Article 24
Article 24 gives the courts of the Kingdom jurisdiction over cases brought against a Saudi even if he has no general or chosen residence in the Kingdom, except real actions concerning real estate outside the Kingdom.
تختص محـاكم المملكة بنظـرالدعـاوى التـي ترفع على السعودي ولو لم يكن له محل إقامة عام ومختار في المملكة فيما عدا الدعاوى العينية المتعلقة بعقار خارج المملكة.
- Article 25
The article makes the Kingdom's courts competent over claims against a non-Saudi who has a general or chosen place of residence in the Kingdom, except real actions concerning real estate outside it.
تختص محاكم المملكة بنظر الدعاوى التي ترفع على غير السعودي الذي له محل إقامة عام أو مختار في المملكة فيما عدا الدعاوى العينية المتعلقة بعقار خارج المملكة.
- Article 26
The article sets three cases in which the Kingdom's courts are competent over a claim against a non-Saudi with no general or chosen place of residence in it: property or obligation, bankruptcy, and multiple defendants.
تختص محاكم المملكة بنظر الدعاوى التي ترفع على غير السعودي الذي ليس له مكان إقامة عام أو مختار في المملكة في الأحوال الآتية: أ - إذا كانت الدعوى متعلقة بمال موجو
- Article 27
The article sets cases in which the Kingdom's courts are competent over a claim against a non-Saudi Muslim with no place of residence in it, relating to marriage, divorce, maintenance, lineage, guardianship and other personal status matters.
تختص محاكم المملكة بنظر الدعوى المقامة على المسلم غير السعودي الذي ليس له مكان إقامة عام أو مختار في المملكة، وذلك في الأحوال الآتية: أ - إذا كانت الدعوى معارضة
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.