SCA 1910/2019
This case involved cheques which had been issued to a defendant but they had breached their obligations. These cheques had not been issued in exchange for anything and so were not related to commercial activity. As a result the court lacked jurisdiction.
Background
A claimant filed a case against a defendant before the court. He requested the court to order the defendant to pay 1550000 Riyals. He said that he had issued cheques to the defendant but the latter had failed to commit to his obligations.
The court said that the case documents revealed that the claimant had issued the mentioned cheques to the defendant in exchange for nothing. The court said that the two parties were not merchants and that the dispute between them was not related to a commercial activity
Decision
The court ruled that the consideration of the case did not fall under their jurisdiction.
The Court of Appeal – Jeddah upheld the ruling based on same grounds.