SAUDI ARABIA Law and Practice Contributed by: Saud AlRomi, Mostafa Ihab and Saleh Elbadry, Mohammed AlDhabaan & Partners Eversheds Sutherland
2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets
court to request its inspection and establishment by way of a summary case. Where the dispute falls within the jurisdiction of the commercial courts, the equivalent procedure is available under Article 36 (1) of the Law of Commercial Courts, which expressly includes inspection to verify an existing state among the summary petitions that may be filed. In all cases, Saudi courts have established that such applications must satisfy two requirements: seriousness (meaning the claim appears valid on the face of the papers) and urgency (meaning there is an imminent harm that cannot be remedied or that is feared to occur imminently). This procedure may be invoked before substantive proceedings are commenced. Where the court grants the application, it is the court itself – or an expert appointed by it – that conducts the inspec - tion, including at the defendant’s residence or place of business. Whether the claimant may attend is sub - ject to the court’s discretion. No cross-undertaking in damages is explicitly required. Criminal Proceedings On the criminal side, filing a fraud complaint with the public prosecution or the police triggers investiga - tive powers – including search warrants, seizure of documents and interception of communications under Articles 79, 80 and 57 of the Criminal Procedure Law – that are far broader than what is available in civil proceedings. 2.3 Obtaining Disclosure of Documents and Evidence From Third Parties During Proceedings The primary mechanism for obtaining documents from third parties is Article 37 of the Evidence Law, under which the court may, on its own motion or at a party’s request and at any stage of the case, order the joinder of a third party to produce a document in their posses - sion. The court may also request from a public entity a certified copy of any document the litigant is unable to produce, and may request the public entity to provide information relevant to the case, verbally or in writing. Under Article 45 of the Procedural Manuals for the Law of Evidence, third-party joinder for document pro - duction follows the general joinder procedures under the relevant laws.
Asset disclosure in Saudi Arabia operates differently depending on whether a claimant holds an enforce - able instrument. Under Article 9 of the Enforcement Law, compulsory enforcement may only be carried out pursuant to an enforceable instrument for a due and specified right – which includes court judgments, arbi - tral awards and documents the defendant acknowl - edges as containing a due right. Once such an instrument exists, the enforcement judge may order the debtor to disclose assets suf - ficient to satisfy the debt under Article 16 of the Enforcement Law. Under Article 17 of the Enforce - ment Law, all competent authorities, asset registration bodies and the debtor’s own debtors, accountants and employees must comply within ten days. The judge may extend this to any person believed to have knowledge of the debtor’s assets under Article 17.1 of the Enforcement Law Regulations. Under Article 47 of the Enforcement Law, the enforcement judge may also personally question the debtor, their account - ants, employees and persons suspected of being favoured by the debtor, and may appoint an expert to trace assets. The regime is not limited to assets in the defendant’s own name – under Article 46 of the Enforcement Law, it extends to the debtor’s spouse, children and any person to whom circumstantial evi - dence suggests assets may have been transferred. Before judgment, the disclosure mechanisms avail - able are more limited. For the tools available at that stage – including provisional attachment, garnishment of third parties and the consequences of non-compli - ance – 1.7 Prevention of Defendants Dissipating or Secreting Assets . 2.2 Preserving Evidence Civil Proceedings On the civil side, a party who fears that evidence may be lost or destroyed may file an urgent inspection case under Article 206 of the Civil Procedure Law, read together with Articles 108 and 109 of the Evi - dence Law. Article 109 of the Evidence Law specifi - cally allows a party who fears the loss of evidence relating to a fact that may be disputed before the
291 CHAMBERS.COM
Powered by FlippingBook