General Court and Commercial Court in Financial Claims
Disclaimer: This is a legal article that provides information that does not replace consulting a competent lawyer to help you and for more accurate information.
A financial claim does not become a business simply because it is a claim for an amount. The separator is: What is the reason for religion? Who are its parties? Did it arise from work or a commercial contract?
The Commercial Court has jurisdiction over financial claims if they fall within its statutory jurisdiction, the most important of which are:
- A dispute between two merchants arising because of their original or subsidiary business.
- A claim against a merchant arising from a commercial contract if the value of the original claim exceeds 100,000 riyals.
- A dispute arising from a participation contract.
- Claims related to corporations, bankruptcy, intellectual property, or any other business system.
Article Sixteen of the Commercial Courts System states: “The court has jurisdiction to consider the following: 1. Disputes that arise between merchants due to their original or subsidiary business. 2. Claims filed against the merchant in commercial contract disputes, when the value of the original claim in the lawsuit exceeds one hundred thousand riyals.
The General Court considers a financial claim if it is civil and not within the jurisdiction of a court or other entity, such as a personal debt, a loan between individuals, civil compensation, or obligations arising from non-commercial relationships. Article Thirty-One of the Sharia Procedures System states that general courts have jurisdiction over all lawsuits outside the jurisdiction of other courts and the Board of Grievances.
Practical examples:
- A person lent someone an amount but did not get it back: General Court.
- An establishment sells goods to another establishment, but the latter has not paid their value: Commercial court if the dispute arises from the commercial activity of both parties.
- An individual who purchased a car or item for personal use and demanded a refund or compensation from the seller: It is not a commercial dispute simply because the seller is a company; the competent court determines the nature of the contract and the system governing the relationship.
- A partner claims from a company a financial right arising from the company or from a partnership contract: the commercial court.
- A contractor’s claim for his dues arising from a contracting contract: It is not decided by describing it as financial; It looks at the status of the parties, the nature of the contract, and whether the activity is commercial in the specific case of a system.
In terms of place, in a commercial lawsuit, the original filing is with the court within which the defendant’s place of residence is located, and it may also be filed within the scope of the place where the contract was concluded, implemented, or was enforceable, in accordance with Article Seventeen of the Commercial Courts Law.
Conclusion:
If the debt arises from a trade, commercial contract, company or bankruptcy, the Commercial Court shall have jurisdiction in accordance with the stipulated cases. If it is a debt or a personal civil obligation that does not fall within the jurisdiction of a specialized court, the competent court is the general court.
For law and legal consultations..Contact the office of lawyer Abdul Majeed Al Rashid.
References
- Article Sixteen of the Commercial Courts Law
- Article Seventeen of the Commercial Courts Law
- Article Thirty-One of the Sharia Procedures Law
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