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Al Madani & Co. Law Firm & Legal Consultants

Article 70 of the Enforcement Law: The Right to Imprison the Debtor in Light of Recent Amendments to the Law and its Executive Regulations

The decision of Article 70 of the Enforcement Law is one of the intricate legal issues that concern many legal practitioners and parties against whom judicial rulings have been issued and not complied with. It is well-known that the Enforcement Law governs the procedures for executing judicial rulings and official documents in the Kingdom of Saudi Arabia, aiming to ensure the swift and accurate execution of judgments while respecting the rights of all parties involved in the enforcement process.
In this context, Article 70 from Chapter Four of the Law — specifically in the section concerning direct enforcement — grants the enforcement division the authority to take action if the competent authorities are unable to complete the enforcement process, or if a financial fine has been imposed on the debtor and they fail to comply within the period specified by the enforcement judge. In such cases, the judge is permitted to issue an order to imprison the debtor to compel them to execute the decision. Additionally, other measures provided in the Law and its Executive Regulations may also be applied.
This article aims to analyze the legal dimensions of Article 70 of the Saudi Enforcement Law (1444), highlighting its impact on judicial proceedings and the rights of affected parties within the Kingdom of Saudi Arabia by examining the legal framework for the imprisonment of debtors who refuse to comply with enforcement orders.

The Legal Context for Imprisoning a Debtor Who Refuses to Comply with Enforcement Orders

Article 70 of the Enforcement Law states: “If the competent authorities are unable to use force for the purpose of enforcement, or if a financial fine is imposed on the debtor and they fail to comply within the period specified by the enforcement judge, the judge may issue an order to imprison the debtor to compel them to comply.”
The article operates in harmony with other provisions of the Law, such as Article 69, Article 46, and Article 83, which collectively aim to provide the necessary procedures to ensure the execution of judicial rulings.

1. Financial Penalties and Their Enforcement Mechanisms under Articles 70 and 69 of the Enforcement Law

The financial fine mentioned in Article 70 refers to a penalty imposed by the enforcement judge when the authorities are unable to enforce the judgment, or when the debtor refuses to comply. According to Article 69, the judge may impose a daily fine not exceeding 10,000 Saudi riyals for each day of delay. If the debtor does not pay the fine within the specified time, the law permits the judge to issue an order to imprison the debtor to compel enforcement.

2. Judicial Enforcement Measures and the Judge's Powers under Article 46 of the Enforcement Law

Article 46 outlines a series of legal measures to be taken against a debtor who has not complied with judicial rulings, aiming to ensure effective execution and secure the necessary assets. The law grants the judge the authority to take various measures, including imprisonment, in accordance with the Law and its Executive Regulations.

• Travel Ban: This measure ensures that the debtor remains in the country to fulfill their obligations and does not flee to avoid enforcement.
• Suspension of Power of Attorney Issuances: This prevents the debtor from transferring or disposing of assets, ensuring that funds remain available for the judgment’s execution.
• Disclosure of the Debtor’s Assets: The debtor is required to disclose their current assets and any future assets, which are then seized to enforce the judgment.
• Disclosure of the Debtor’s Commercial and Professional Licenses: This increases transparency and ensures the availability of necessary information for enforcement.
• Prohibition on Government and Financial Entities from Dealing with the Debtor: Government and financial institutions are barred from engaging with the debtor until the judgment is enforced, enhancing enforcement efficiency.
• Disclosure of the Debtor’s Spouse’s and Children’s Assets: This ensures transparency regarding any attempts to hide or transfer assets, and any suspicious activity is referred to the judge for further investigation.
• Imprisonment of the Debtor: If the debtor fails to comply with judicial orders, imprisonment may be used as per the Law.

It is important to note that a decision issued by the Ministry of Justice in January 2020 eliminated paragraph 5 of Article 46 of the Executive Regulations, which previously suspended the debtor’s government e-services. Therefore, suspension of government services is no longer considered a valid enforcement measure.

3. Legal Regulations Governing Debtor Imprisonment under Article 83 of the Executive Regulations

While Articles 46 and 70 allow the imprisonment of the debtor as a coercive measure to compel enforcement, Article 83 of the Executive Regulations outlines the specific legal conditions for imprisonment (executive imprisonment), as follows:

• Article 83/2: Recent amendments to the Executive Regulations introduced this article, adding legal conditions for executive imprisonment. The court must first consider insolvency claims, as stipulated in the Law, and three months must pass without the debtor fulfilling their obligations or the discovery of assets sufficient to satisfy the debt. The imprisonment can be ordered if the debt amounts to one million Saudi riyals or more, and the debtor may only be released with the creditor’s consent or by an appealable judicial order.
• Article 83/3: Under this article, the debtor must be interrogated within 15 days of their imprisonment if the imprisonment order is based on a judicial decision under Article 46 of the Law. The debtor may be released if evidence shows their seriousness in settling their financial situation.
• Article 83/4: This article limits the duration of executive imprisonment to three months. If this period elapses, the court may extend it for additional periods, none of which may exceed three months.

In conclusion, Article 70 of the Saudi Enforcement Law forms an essential part of the legal framework aimed at ensuring the swift and accurate execution of judicial rulings while respecting the rights of all involved parties. When considered alongside other provisions of the Law, it becomes clear that a comprehensive understanding of its legal dimensions is crucial for assessing its impact on judicial processes and the rights of affected parties.