SCA 34197112/2013
Type
Case
Court
Saudi Arabian Court of Appeal
Jurisdiction
Saudi Arabia
Taxonomy
General Insolvency Law, Financial & Business Offences
Copyright
LexisNexis
Decision date
6 Jun 2013
Catchwords
Insolvency – Criminal activities – Debts – Abuse of trust – Embezzlement – Public interest
A debtor requested that the court declare him insolvent and extend the payment deadline. The creditor objected to this as the debtor had been charged with embezzlement and abuse of trust and as such should not be considered in state of insolvency.
Background
An indebted man claimed he owed a businessman 14,818,023.71 Riyals for the cost of goods but was unable to pay back the debt and was subsequently imprisoned. He filed a case (Case No. 7213 Folder No. 23240799 on 02/02/2013) with Dammam General Court requesting the court declare him as insolvent and extend the repayment deadline to until he was able to repay the debt.