SACC 2340/1443
This case involved a request for liquidation where a payment order had been defaulted on. A key point was that there needed to be proof that the debtor had been asked to pay and given the required time to do so.
Background
A claimant company filed a claim with the court requesting the liquidation of the defendant company because a final ruling had been issued against them requesting the repayment of the debt but they were insolvent and unable to pay.
Decision
The Court said that Article 93 of Saudi Arabia Cabinet Decision No. 264/1439 stipulates that the creditor must prove that a request was made to the debtor to pay the debts 28 days before the date of filing a claim with the court and that the debtor had not paid or was disputing the debt. Article 48 of Saudi Arabia Cabinet Decision No. 622/1439 stated that request to pay the debt must include the debt’s date, amount, and reason.
The documents of the case showed that the claimant’s company had not requested the defendant company to pay according to the provisions provided by law.
Therefore the court dismissed the case.