SACC 1879/1443
This case involved a request of a creditor for liquidation proceedings to be commenced with a debtor who had failed to pay them despite various executive decisions requiring payment. A key point was the debtor did not have a license to engage in commercial activity or a facility where they conducted business so the bankruptcy law did not apply.
Background
A creditor filed a request to the court to initiate liquidation proceedings against the debtor. He said that the debtor had failed to repay the debt he owed him despite several executive decisions requiring payment. He also said that the debtor who had failed to pay the debt had many assets.
The court said that Article 4 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the provisions of the law applied to any natural person who engaged in activities and operated actively. The court said according to the article the commercial activity required a license permitting the person to engage in that activity and the presence of a facility where the person conducted their business.