Background

A claimant filed a case against a company before the Commission of Commercial Papers requesting the company to pay the value of cheques issued by the manager of the company.

The commission decided not to consider the case and ruled that the company should pay a fine of 2000 Riyals for issuing cheques without fund.

The representative of the claimant made a plea against the ruling before the Legal Commission of Trade Ministry (SLCTM) and stated the person who drew the cheques was the company's manager and so the company should be responsible for his acts.

Decision

The SLCTM stated the case was filed against an irrelevant party because the case file revealed that the cheques had been endorsed in a way that transferred their ownership in line with Articles 17 and 117 of the Law of Commercial Papers and the endorser was the person who had the right to file the case.

The SLCTM dismissed the case because it was filed against an irrelevant party.