SCA 1824/2019

This case involved a bounced cheque used to finance the purchase of goods. This was not considered a commercial activity so the court lacked jurisdiction.

Background

A claimant filed a case against a company before the court. He said that he had agreed to finance the company’s purchase of iron for 850000 Riyals. He said that the company had issued a cheque to him but it had bounced.

Decision

The court said that the case documents revealed that the dispute between the two parties was related to financing goods. The court said that the dispute was therefore not related to a commercial activity. The court said that the court did not have the jurisdiction to consider the case according to Article 35 of Saudi Arabia Cabinet Decision No. 11/1435 .

The court ruled that the consideration of the case did not fall under its jurisdiction.

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