According to Article No. (23) of the draft law, it stipulates that the court may, at the request of the claimant of the enforcement, order the applicant of the execution of a judgment to be enabled to review the funds of the Judgement debtor (defendant), which is given within the limit of the enforcement instrument, as per what is prescribed in the implementing regulations.

If evidences appeared, which show that the defendant did conceal his funds, the court may question not only him, but also his/her relatives or anyone whose has been suspected to be involved with the defendant to conceal the funds.

The court, in case the defendant had disposed any of the funds contained in the enforcement order once he/she is served with such order, may revoke any disposal of such funds at the request of the applicant of the enforcement, whether this disposal is in form of a gift, donation, or repayment of a debt before it becomes due.

The implementing regulations of the law shall specify all such procedures.

Seizing funds contained in the execution order:

The firmest principle in this draft law as well as in the prevailing enforcement law is that all the funds belonging to the debtor do guarantee the rights of the creditors, so the draft law has permitted the attachment of the funds given in the enforcement order, yet it should be within the limit of the debt.

If the funds seized be more than the amount of the debt, the defendant may propose to the Judge that he/she would pay the debt amount from a specific source to cover the actual debt if the seized fund(s) is more than the debt amount.

If any charges imposed due to the executory seizure of defendant’s funds, the defendant then would bear such charges, unless somebody else had caused it, and in such case such person shall pay these charges.

In case the parties to the execution of court order agreed to end the enforcement application by settlement, then such settlement agreement should specify who shall bear and pay the enforcement charges, if any.

Sale of the attached assets:

The objective of the enforcement draft law seeks as regards the confiscation of the defendant’s funds or assets is always to compel the defendant (the party against whom an execution order is brought) not to obstruct the execution of court order, and to enforce him/her to settle the amount contained in the execution order.

In case of non- payment, selling the seized assets shall be the only option to fulfil the rights of creditors.

Once the seized assets are sold, the money generated therefrom shall be deposited in the bank accounts designated by the court. These accounts are opened in accordance with the rules and regulations to be prescribed by the implementing regulations.

Direct Execution and Personal Status:

In this part, the draft law has granted seven (7) days during which the defendant should comply with the execution order. If the defendant failed to observe the execution demands related to the direct execution such as properties and movable assets, the enforcement court may recourse to the forced execution, through the police force in order to execute the court order.

The court may also levy penalties on the defendant for each day if the defendant intentionally delays and obstructs the execution of the court judgement. This penalty can reach up to SAR 10,000.

As for execution judgements in personal status, the provisions of the direct execution shall be applied thereto, and shall be construed by the implementing regulations of the law.

Execution of court judgment upon the legal entity:

Regarding execution of court judgements upon legal entities where no specific text contained therein, the provisions set forth in the law shall apply.

Further, provisions of the direct execution of judgements shall apply to the legal representative of the legal entity and to the one, affiliated to the legal entity, who caused the obstruction of the execution of the court order. The implementing regulations shall prescribe the necessary provisions to execute so.

The new draft law and its implementing regulations is expected bring ideal recovery procedures ensuring the rights of the claimants will be secured.

The above article is mere explanation of the draft law and it is not a legal opinion.