A claimant filed a case against a company before the court. He requested the court to liquidate the company. He said that the company was not making profits and that there was a dispute between the partners.

One of the partners in the company claimed that the company was still working and making profits.

The court said that the case document revealed that the company's debts exceeded its capital and therefore the company could not be liquidated. The court said that the relevant laws stipulated that the company could be liquidated if the capital was sufficient to cover the debts. The court said that the court should have announced bankrupt according to Article No. 7 of Saudi Arabia Cabinet Decision No. 264/1439.

The court dismissed the case.

The Court of Appeal – Riyadh upheld the ruling based on the same grounds.