SCA 1298/2019
This case involved a request to suspend creditors' claims in a bankruptcy as a proposal to reschedule the debt had been put forward.
Background
The debtor requested the court to suspend the claims of the creditor according to Article 17 of Saudi Arabia Cabinet Decision No. 264/1439 . He said that he had offered the creditor a proposal to reschedule the debt.
Decision
The court said that Article 17 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the debtor had the right to request the court to suspend the claims of the creditor if he provided a report carried out by the bankruptcy trustee. The court said that the report provided by the debtor complied with the rules stipulated in the article.
The court ruled that the claims of the claimant against the debtor should be suspended for 90 days.
The Court of Appeal – Jeddah upheld the ruling based on same grounds.