|30 January, 2020

Saudi justice minister revokes rule to deny e-government services for insolvents

Under the new amended executive regulations of the Saudi Judicial Implementation Law, the convict shall be prevented from carrying out financial dealings only

Saudi men walk outside the General Court in Riyadh, July 24, 2018. Image used for illustrative purpose.

Saudi men walk outside the General Court in Riyadh, July 24, 2018. Image used for illustrative purpose.

REUTERS/Faisal Al Nasser

RIYADH — Minister of Justice and Chairman of the Supreme Judicial Council Sheikh Walid Al-Samaani has revoked the regulation to stop e-government services to those convicted of insolvency cases.

Under the new amended executive regulations of the Saudi Judicial Implementation Law, the convict shall be prevented from carrying out financial dealings only.

The minister also approved new regulations with regard to the period of detention in in the event of a plea from the plaintiff in this regard and giving concessions to the insolvents after taking into account their age and family situation.

The amendments included the abolition of article 46/5 of the executive regulations of the Implementation Law, which states, “it includes preventing government agencies from dealing with the debtor to stop its electronic government services.”

Al-Samaani also approved amending article 83/2 of the law to make the mandatory detention of the convict if the amount of debt involved is SR1 million or more and that was after a request from the plaintiff in case of his failure to clear the debts within period of three months or found that the convict has sufficient funds to settle the debt, provided that he has not filed for insolvency. In such situations, the convict may not be released except with the consent of the plaintiff or after an appeals court verdict.

The minister of justice approved the addition of a new article to the regulation No. 83/3, which stipulates that if the debtor, who has solvency, failed to settle the debts on the basis of the verdict of a judicial court within six months, he will be imprisoned upon the request of the plaintiff.

In such cases, the convict shall be interrogated within 15 days after the date of imprisonment and should release him if there is substantial evidence showing that he is serious about settling his financial liabilities.

The recent amendments also stipulated that the period of imprisonment shall not be more than three months, and the extension of sentence shall be made for a similar period after interrogating the debtor.

The minister also ordered to add article 83/4 to the law under which articles 83/2 and 83/3 shall not be applied to the debtor if his age exceeds 60 or he has minor children while his spouse is deceased or serving prison term.

 
 

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