SBG 4046/2015
This case involved an agreement between two parties to set up a company. The second defendant was the guarantor of the first. As the case involved a guarantee contract it was not a commercial dispute and did not fall within the court's jurisdiction.
Background
A claimant filed a case against two defendants before the court. He said that he had agreed to establish a company with the second defendant but the latter left Saudi Arabia after he had received the money. He said that the first defendant was the sponsor of the second defendant and he had refused to pay the mentioned amount.
Decision
The court considered the documents of the case. The court said that Article 443 of Saudi Arabia Royal Decree No. M32/1350 stipulated that the commercial court in the Board of Grievances considered the disputes which resulted from commercial transactions. The court said that the contract signed between the claimant and the first one was a guarantee contract that did not fall under scope of commercial law.
The court said that the consideration of the case did not fall under its jurisdiction.
The court of appeal upheld the ruling.