SCA 4530240907/2024

This case involved whether a trustee in bankruptcy could file for debts of an insolvent company in their personal capacity when the company still existed.

Background

This case involved a financial claim raised by the appointed bankruptcy trustee of a commercial entity. The trustee sought an order requiring a contracting establishment to pay 1,064,500 Saudi riyals, representing the outstanding balance for contracting work relating to the supply and installation of signboards under a municipal improvement project.

The central issue in the case was not the existence of the underlying debt but rather the legal capacity in which the trustee had filed the claim. The original contract giving rise to the debt had been concluded between the defendant contracting establishment and the Establishment. The trustee, however, filed the action in his personal name rather than in the name of the company under bankruptcy procedures. This raised the question of whether he had the correct legal standing to pursue the claim in court.