A company submitted a request to the court to initiate liquidation proceedings against the defendant company.

The court ruled that a liquidator should be appointed. The court, however, noticed several observations regarding the liquidator's performance, including delays in the proceedings, failure to properly trace the debtor's assets, non-compliance with the court's instructions, and delays in the sale procedures.

The court stated that Article 54 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the court may remove the liquidator and appoint a new liquidator on its own or upon request if there was a valid reason for doing so.

The court said that the observations had an impact on the smooth progress of the proceedings in accordance with the law, leading to delays in accomplishing the main tasks of the liquidation process and prolonging the duration unreasonably for one year and five months.

The court ruled that the liquidator should be dismissed and that a new should be appointed to carry out the liquidation proceedings.