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Performance Orders and Enforcement Court: The Fastest Route to Recovering the Value of Commercial Papers (Cheques and Promissory Notes)

Introduction: When Financial Dues Become Enforceable Rights

Commercial papers are among the most important instruments for securing financial and commercial transactions between individuals and companies. They are not merely documents evidencing indebtedness; they also play a central role in organizing financial obligations, strengthening trust between parties, and providing legal instruments that enable creditors to claim their rights when payment becomes due.

With the expansion of commercial transactions and the growing reliance on deferred payments and credit facilities, cheques and promissory notes have become common instruments for securing the fulfilment of financial obligations. However, problems arise when the payment due date passes without the debtor making payment, when a cheque cannot be cashed, or when the debtor delays payment of a promissory note despite the debt being established.

This is where the importance of performance orders and the Enforcement Court in the Kingdom of Saudi Arabia becomes clear. They represent legal channels through which creditors can claim their rights and recover outstanding dues in accordance with specific rules and procedures. The appropriate route depends on the nature of the document, whether it meets the legal requirements, and whether it qualifies as an enforceable instrument that allows the creditor to apply directly to the Enforcement Court or requires a prior judicial order.

The Saudi enforcement system has undergone a significant development with the entry into force of the new Enforcement Law on 29 October 2026. This includes the regulation of enforceable instruments and requirements concerning the registration of bills of exchange and promissory notes on national electronic platforms. Understanding these legal updates has therefore become essential for every company, investor, or business owner seeking to protect their financial rights.

In this guide, we explore the concept of commercial papers, the difference between a performance order and an enforcement application, the requirements for using each procedure, the legal steps for recovering the value of cheques and promissory notes, and the most common mistakes that may delay debt collection.

First: What Are Commercial Papers and Why Are They Important in Financial Transactions?

Commercial papers are written instruments containing financial obligations in accordance with the information and conditions prescribed by law. They are used in commercial transactions to facilitate debt settlement, regulate the transfer of financial rights, and establish obligations.

Their importance lies in the fact that they bring greater structure and clarity to commercial dealings. They help parties identify the amount of an obligation, its due date, and the beneficiary. Certain commercial papers also have enforceable status, allowing creditors to take legal action to recover their rights without first initiating lengthy proceedings on the merits, provided the required conditions are met.

The most common commercial papers used in the Kingdom include:

1. Cheque

A cheque is a commercial instrument containing an order issued by the drawer to the drawee bank to pay a specified sum of money to the payee or to their order, in accordance with the information and provisions of the Commercial Papers Law.

Cheques are used to settle financial obligations in both commercial and other transactions. They may serve as a means of payment for goods, services, or obligations arising from contracts.

When a cheque cannot be cashed due to insufficient funds or another reason resulting in non-payment, the beneficiary may be entitled to claim its value through the applicable legal procedures, provided the necessary requirements are satisfied.

2. Promissory Note

A promissory note is a written instrument containing an unconditional undertaking by its maker to pay a specified sum of money to a named person or to their order, on a particular date or according to the payment terms stated in the instrument.

Promissory notes are commonly used in commercial and financing transactions. Examples include:

Evidencing an obligation to pay for goods purchased on deferred payment terms.
Securing payment of outstanding instalments.
Documenting indebtedness between companies.
Securing financial obligations arising from certain commercial agreements.
Organizing payments in transactions between suppliers and customers.

It is important to note that a promissory note does not acquire enforceable status merely because it is a document bearing that name. It must satisfy the legal requirements, including the necessary information for its validity and the electronic registration requirements introduced under the new Enforcement Law, in order to qualify for direct enforcement.

3. Bill of Exchange

A bill of exchange is a written instrument containing an order from one person, known as the drawer, to another person, known as the drawee, to pay a specified sum of money to a third person, known as the payee, or to their order, in accordance with the provisions of the Commercial Papers Law.

A bill of exchange differs from a promissory note in the nature of the obligation. A bill of exchange contains an order to pay addressed to the drawee, whereas a promissory note contains a direct undertaking by its maker to pay.

Bills of exchange are also subject to the requirements concerning registration on national electronic platforms in order to qualify for direct enforceability under the new Enforcement Law.

Second: What Is a Performance Order and How Does It Help Creditors Recover Their Rights?

A performance order is an exceptional judicial procedure that allows a creditor to request a court order requiring a debtor to pay a due debt without following the ordinary procedure for filing a lawsuit from the outset, provided the conditions established under the Commercial Courts Law are met.

This procedure is particularly important when the debt is evidenced in writing, is due for payment, and has a specified amount, meaning that there is no need for complex proceedings to establish the existence or value of the underlying right.

Instead of filing an ordinary commercial lawsuit in every case, a creditor may submit an application for a performance order in accordance with the applicable legal procedures. This can help accelerate the resolution of the claim when all supporting documents and requirements are complete.

What Are the Legal Requirements for Applying for a Performance Order?

Article 67 of the Commercial Courts Law sets out the main conditions that must be met for an application for a performance order to be accepted:

1. The right must be evidenced in writing

The creditor must rely on a written document establishing the existence of the debt, such as a contract, agreement, financial document, or written instrument containing an acknowledgement of the obligation.

The purpose of this requirement is to ensure that the claim is based on clear written evidence rather than a verbal allegation that may be difficult to verify.

2. The debt must be due for payment

The mere existence of a financial obligation owed by the debtor is not sufficient. The payment due date must have arrived.

For example, if a contract provides that payment is due after six months and that period has not yet expired, the creditor cannot generally demand payment before the due date unless a legal ground exists that makes the debt immediately payable.

3. The amount of the debt must be specified

Where the claim concerns a monetary amount, its value must be specified or determinable based on established criteria that do not leave the court with discretionary authority to calculate it.

For example, if a contract establishes a debt of SAR 200,000 and the payment due date has passed, the amount of the debt is generally considered specified.

However, if the claim requires complex calculations, an assessment of damages, or the resolution of disputes concerning the value of completed work, a performance order may not be the appropriate procedure.

Must the Debtor Be Notified Before Applying for a Performance Order?

Yes. Article 68 of the Commercial Courts Law requires the creditor to notify the debtor in writing of the payment demand at least five days before submitting the application for a performance order to the court.

The notice must include the intended date on which the creditor plans to submit the application to the court.

This requirement gives the debtor an opportunity to settle the debt before judicial proceedings are initiated. It also provides evidence that the creditor has fulfilled the legal notification requirement before filing the application.

What Documents Are Required for a Performance Order Application?

Under Article 69 of the Commercial Courts Law, the application must be submitted to the court with the following documents and information:

The facts and legal grounds of the application.
The debtor’s full name and address.
Evidence that the debtor was notified of the payment demand.
Any additional information and documents required by the Implementing Regulations.

Preparing these documents properly enables the court to verify the existence of the debt, confirm that it is due, and establish its amount without missing essential information.

Third: What Is the Enforcement Judiciary and When Should a Creditor Apply to It?

The Enforcement Judiciary is the judicial authority responsible for supervising the enforcement of enforceable instruments and taking the legal measures necessary to compel debtors to fulfil the rights established in those instruments.

The role of the Enforcement Court differs from that of a court hearing the merits of a dispute. A court hearing the merits examines the underlying dispute and the rights and obligations in question, whereas the Enforcement Court implements rights established in an enforceable instrument that satisfies the legal requirements.

Accordingly, a creditor holding a cheque that meets the legal requirements or a promissory note registered in accordance with the applicable requirements may be able to submit an enforcement application directly without first obtaining a judgment establishing the underlying debt.

What Are the Basic Requirements for Compulsory Enforcement?

The new Enforcement Law provides that compulsory enforcement may only take place on the basis of an enforceable instrument establishing a specific right that is due for payment.

This requires several essential elements, including:

The existence of an enforceable instrument recognized by law.
Clear evidence of the right established in the instrument.
The right being specified or determinable in accordance with the legal requirements.
The obligation being due for payment.
Compliance with the legal procedures and requirements for submitting the enforcement application.

If any essential requirement is missing, the direct enforcement application may not be accepted. The creditor may need to complete the documents or follow the appropriate judicial procedure, depending on the circumstances.

What Are the Main Enforceable Instruments Under the New Law?

Article 7 of the new Enforcement Law identifies several enforceable instruments, including:

Final judgments, orders, and decisions, as well as judgments subject to expedited enforcement, issued by courts in the Kingdom.
Arbitral awards in accordance with the relevant legal provisions.
Settlement agreements and settlement documents authenticated or issued by legally authorized entities.
Bills of exchange and promissory notes, provided they are registered on national electronic platforms.
Cheques.
Contracts and authenticated acknowledgements in accordance with the Notarization Law.
Foreign judgments, orders, and documents, subject to the applicable legal requirements.
Contracts and documents granted enforceable status by law or by a decision of the Council of Ministers.

This framework demonstrates that the law distinguishes between different types of documents. Electronic registration is not required for all commercial papers in the same way. The law expressly requires the registration of bills of exchange and promissory notes on national electronic platforms, while cheques are separately included among enforceable instruments.

View the New Enforcement Law – Bureau of Experts at the Council of Ministers

Fourth: The Difference Between a Performance Order and a Direct Enforcement Application

One common mistake is confusing a performance order with an enforcement application, despite the fact that each has a different legal nature. Choosing the correct procedure can save time and effort and help avoid unnecessary steps.

Performance Order

A performance order is a judicial application submitted to the competent court requesting an order requiring the debtor to pay a debt that is evidenced in writing, due for payment, and specified in amount.

It is appropriate when the creditor has a document proving the debt but needs a judicial order compelling the debtor to pay, and does not possess an enforceable instrument that can be enforced directly.

Direct Enforcement Application

A direct enforcement application is submitted to the Enforcement Court on the basis of an enforceable instrument recognized by law, with the aim of compelling the debtor to fulfil the right established in that instrument.

It is appropriate when the creditor holds an enforceable instrument that satisfies the legal requirements, such as a qualifying cheque or a promissory note registered in accordance with the new law.

Comparison Between the Two Procedures

Comparison	Performance Order	Direct Enforcement
Competent authority	Competent court under the Commercial Courts Law	Enforcement Court
Basis of the claim	A written, due debt with a specified amount	An enforceable instrument meeting the legal requirements
Purpose	To obtain a judicial order requiring payment	To enforce the right established in the instrument
Prior notification	Written notice at least five days in advance	Subject to enforcement requirements and procedures
Outcome	A judicial order subject to expedited enforcement	Enforcement measures in accordance with the law

Neither procedure is suitable for every situation. The main criteria are the nature of the document, its enforceable status, and whether it satisfies the applicable legal requirements.

Fifth: Enforcing Cheques in Saudi Arabia – How Can the Beneficiary Recover the Cheque Amount?

A cheque is one of the most prominent payment instruments in commercial transactions, and the law grants it special protection because of its nature as an instrument of payment.

When the beneficiary presents a cheque to the bank for payment and the bank is unable to honour it, the beneficiary may be entitled to take legal action to claim the amount, depending on the reason for non-payment and the information recorded on the cheque.

When Can a Cheque Be Submitted to the Enforcement Court?

The new Enforcement Law includes cheques among enforceable instruments. Accordingly, in principle, an enforcement application may be submitted on the basis of a cheque when it satisfies the legal requirements and establishes a right that is due for payment.

It is important to distinguish between a cheque and a promissory note. Cheques are not included in the category of instruments for which the law requires registration on national electronic platforms to qualify as enforceable instruments. By contrast, this registration requirement is expressly imposed on bills of exchange and promissory notes.

What Are the Practical Steps for Claiming the Value of a Cheque?

The main steps can be summarized as follows:

Step One: Review the Cheque Details

The beneficiary should verify the accuracy of the cheque details, including the amount, issue date, beneficiary’s name, drawer’s signature, and other information required under the Commercial Papers Law.

Step Two: Present the Cheque to the Bank

The beneficiary presents the cheque to the drawee bank for payment. If payment is refused, the beneficiary should retain the bank documents proving the non-payment and its reason, as applicable.

Step Three: Prepare the Claim Documents

The beneficiary should prepare the cheque, its related information and supporting documents, and any evidence of the failure to cash it where required. The debtor’s identity and the information necessary for submitting the enforcement application should also be verified.

Step Four: Submit the Enforcement Application

If the cheque satisfies the legal requirements, the beneficiary may submit an enforcement application through the approved channels. The application will then be reviewed and processed in accordance with the Enforcement Law and its Implementing Regulations.

Step Five: Follow Up on Enforcement Proceedings

After the application is accepted and the appropriate measures are taken, the beneficiary should follow up on the decisions and procedures issued by the Enforcement Court until payment is made or the enforcement proceedings conclude in accordance with the circumstances.

Is Having a Returned Cheque Enough to Guarantee Recovery of the Amount?

No. It is important to distinguish between possessing an enforceable instrument and actually recovering the money. An enforceable instrument allows the creditor to seek enforcement in accordance with the law, but it does not necessarily mean that the debtor’s funds are immediately available or that recovery will take place within a specific period.

The recovery process may be affected by the availability of assets subject to enforcement, disputes relating to the instrument, or other legal procedures that may influence the enforcement process.

Therefore, a cheque should be treated as an important legal instrument, while ensuring that it is properly reviewed and that the claim file is accurately prepared.

Sixth: Enforcing Promissory Notes Under the New Enforcement Law – What Has Changed?

A promissory note is an important instrument for securing commercial debts. However, dealing with it after the new Enforcement Law comes into force requires attention to an essential requirement concerning electronic registration.

Article 7 of the new Enforcement Law provides that bills of exchange and promissory notes qualify as enforceable instruments when registered on national electronic platforms.

This means that simply preparing a paper promissory note is not sufficient, after the law takes effect, to rely on it for direct enforcement unless it meets the applicable registration requirement.

Why Is Electronic Registration of a Promissory Note Important?

Electronic registration aims to enhance the reliability of financial documents, verify their information, and reduce the possibility of manipulation or disputes concerning the authenticity and contents of the instrument.

It also helps organize the handling of enforceable instruments and facilitates their submission and review through approved platforms.

What Information Must a Promissory Note Contain?

Article 87 of the Saudi Commercial Papers Law sets out the required information for a promissory note. The main requirements include:

The phrase “to order” or the words “promissory note” written in the body of the instrument and in the language in which it is written.
An unconditional undertaking to pay a specified sum of money.
The due date.
The place of payment.
The name of the person to whom or to whose order payment must be made.
The date and place of issue.
The signature of the person creating the promissory note.

Article 88 addresses certain cases in which missing information may be dealt with in accordance with the provisions specified by law. Therefore, it is not correct to assume that every promissory note with missing information is automatically invalid without reviewing the relevant legal provisions and circumstances.

What Happens If a Promissory Note Is Not Registered?

If a promissory note does not meet the electronic registration requirement necessary to acquire the status of a directly enforceable instrument, it may not be possible to rely on it for direct enforcement in that capacity.

However, this does not necessarily mean that the underlying financial right is lost. The creditor may still be able to claim the debt through legal proceedings or another applicable legal route, depending on the nature of the relationship, the available documents, and the relevant laws.

This highlights the importance of obtaining legal advice before submitting an application to determine whether the promissory note qualifies for direct enforcement or whether additional requirements must be fulfilled or the right must first be established before the competent court.

Is Electronic Registration Alone Sufficient?

No. Registration does not eliminate the need to satisfy the other legal requirements, including the accuracy of the information, proof of the obligation, the arrival of the payment due date, specification of the amount, and the absence of any legal ground preventing enforcement.

For this reason, the instrument should be reviewed from both a substantive and formal perspective rather than relying solely on its presence on an electronic platform.

Seventh: How Does the Court Issue a Performance Order and What Are the Legal Time Limits?

The Commercial Courts Law establishes special procedures for applications for performance orders, with the aim of providing a more streamlined judicial process for claims that meet the legal requirements.

The process begins with written notification to the debtor demanding payment at least five days before submitting the application to the court. The creditor then submits the application along with the facts and grounds of the claim, the required information, and proof of notification.

The Time Limit for Deciding on the Application

Article 70 of the Commercial Courts Law provides that the judicial circuit must decide on an application for a performance order by issuing an order within ten days from the date the application is registered.

The order must specify the right to be performed, whether it concerns money or movable property.

If the application is rejected, the rejection decision is considered final, without prejudice to the creditor’s right to file a lawsuit in accordance with the applicable rules.

It is important to understand that the statutory period for deciding on the application does not necessarily mean that the entire recovery process will be completed within ten days. Issuing the order is a separate stage from actual enforcement, and subsequent procedures may take longer depending on the circumstances of each case.

Can the Debtor Challenge a Performance Order?

Yes. Article 71 of the Commercial Courts Law allows the debtor to challenge a performance order before the competent court within fifteen days from the date of notification.

The challenge is submitted according to the ordinary procedures for filing a lawsuit and must state the grounds on which the debtor relies.

The article also allows the court, through a reasoned decision, to suspend the expedited enforcement of the performance order if the debtor requests it and there is a risk that enforcement may cause serious harm.

This framework balances the creditor’s need to obtain their rights promptly with the debtor’s right to challenge the order in accordance with the applicable legal requirements.

Eighth: What Measures Does the Enforcement Court Take to Recover the Right?

After an enforcement application is submitted and accepted in accordance with the legal requirements, the procedures begin with the aim of enabling the creditor to recover the right from the debtor.

The role of the Enforcement Court is not limited to registering the application. It also extends to supervising enforcement proceedings and taking the measures permitted by law, depending on the nature of the instrument and the circumstances relating to the debtor.

The main aspects of enforcement proceedings include:

1. Verifying the Enforceable Instrument

The competent authority reviews the submitted instrument to verify its enforceable status, the accuracy of its information, the identification of the right being claimed, and whether payment is due.

2. Notifying the Debtor

The debtor is notified in accordance with the approved rules and methods, allowing them to become aware of the enforcement application and the resulting obligations and procedures.

3. Enabling the Creditor to Recover the Right

The Enforcement Court takes the legally prescribed measures to secure payment, depending on the debtor’s available assets and the nature of the obligation.

4. Dealing with the Debtor’s Assets in Accordance with the Law

Enforcement measures may extend to assets that are legally subject to enforcement, in accordance with the applicable rules and restrictions, while respecting the rights of the parties and assets exempt from enforcement.

5. Addressing Disputes Related to Enforcement

If a dispute arises concerning enforcement procedures, the instrument, or the entitlement to the claimed right, it is addressed in accordance with the procedures established under the Enforcement Law, taking into account the jurisdiction of the Enforcement Court or the court hearing the merits, depending on the nature of the dispute.

It is important to emphasize that enforcement proceedings are not intended to reopen the underlying commercial dispute in every case. Rather, they are based on the existence of an enforceable instrument, while disputes that may be considered under the law remain subject to the competent authority.

Ninth: Common Mistakes That Delay the Recovery of Cheque and Promissory Note Values

A creditor may possess a document proving their right and still experience delays in recovering outstanding amounts due to mistakes in preparing, retaining, or submitting the commercial paper, or in choosing the appropriate legal procedure.

The most common mistakes include:

1. Preparing a Promissory Note Without Meeting the Legal Requirements

Omitting essential information may raise questions about the validity of the instrument or whether it qualifies as a commercial paper that satisfies the legal requirements.

Therefore, all details should be reviewed before the promissory note is approved and used in transactions.

2. Neglecting the Electronic Registration of Promissory Notes and Bills of Exchange

After the new Enforcement Law takes effect, registration on national electronic platforms becomes a requirement for bills of exchange and promissory notes to acquire enforceable status under Article 7.

Failure to complete this procedure may prevent the creditor from relying on the instrument for direct enforcement in that capacity.

3. Failing to Clearly Specify the Due Date

Clearly specifying the due date helps establish that the debt has become payable and reduces disputes concerning when payment must be made.

The wording of the obligation must comply with the legal provisions governing each type of commercial paper.

4. Failing to Retain Documents Related to the Cheque

The creditor may need to submit documents proving non-payment or the inability to cash the cheque. Therefore, retaining bank documents and relevant information is important to support the claim.

5. Choosing an Inappropriate Judicial Procedure

One mistake that may prolong proceedings is applying for a performance order when a valid enforceable instrument already allows direct enforcement, or submitting a direct enforcement application based on a document that does not qualify as an enforceable instrument.

Choosing the correct procedure requires reviewing the document and identifying the appropriate legal route before taking action.

6. Delaying Legal Action

Delays in pursuing a claim may create issues relating to statutory deadlines, limitation periods, or difficulties in proving certain facts.

The new Enforcement Law contains provisions concerning time limits related to enforceable instruments. Commercial papers are also subject to specific time limits under the Commercial Papers Law. Therefore, it should not be assumed that all instruments are subject to the same limitation period.

7. Failing to Document the Commercial Relationship from the Beginning

Disputes may arise when there is no clear contract specifying transaction values, payment dates, and the obligations of each party.

For this reason, a cheque or promissory note should not be relied upon in isolation from the underlying commercial relationship. It is advisable to retain the contract, invoices, delivery records, and relevant correspondence.

Tenth: How Can Companies Protect Their Financial Rights Before Enforcement Becomes Necessary?

Debt recovery does not begin only when a debtor refuses to pay. It begins when the commercial relationship is established and the financial obligations are documented.

Companies that adopt clear preventive procedures reduce the likelihood of disputes and strengthen their position when claiming outstanding dues.

1. Prepare Clear Commercial Contracts

Contracts should specify the value of the obligation, payment method, due dates, penalties or legal consequences of non-compliance, and the mechanism for resolving disputes.

The details and legal capacity of the parties and their authorized representatives should also be clearly identified.

2. Use Commercial Papers Correctly

The appropriate commercial paper should be selected according to the nature of the transaction. Its information must be complete, and bills of exchange and promissory notes must be registered on national electronic platforms in accordance with the new law.

3. Monitor Payment Due Dates

Maintaining an internal record of outstanding receivables and payment dates helps identify delays at an early stage and enables the company to contact the debtor before the situation worsens.

4. Document Delivery and Receipt Transactions

Companies should retain invoices, delivery records, correspondence, and evidence of performance, as these documents may be important in establishing the underlying debt or responding to disputes.

5. Establish a Clear Credit and Collection Policy

Companies should determine credit limits for customers, assess the risks of deferred-payment transactions, and establish internal procedures for payment reminders and escalation in the event of delays.

6. Have Documents Legally Reviewed Before Use

Legal review helps identify errors in drafting contracts, preparing commercial papers, or completing registration requirements before they become obstacles to recovering outstanding amounts.

Eleventh: The Role of a Lawyer in Performance Order and Enforcement Proceedings

Financial claims require careful examination of the documents, facts, and relevant legal provisions. Choosing the wrong procedure may result in an application being rejected, delays in recovering the right, or disputes that could otherwise have been avoided.

This is where a lawyer plays an important role in managing a financial claim, from reviewing the documents to following up on enforcement proceedings.

The main services a lawyer may provide include:

Reviewing Commercial Papers: Examining cheques, promissory notes, and bills of exchange to ensure that they meet the legal requirements.
Identifying the Appropriate Legal Procedure: Determining whether the document allows direct enforcement or whether the claim requires a performance order or court proceedings.
Preparing Performance Order Applications: Drafting the application, setting out the facts and legal grounds, preparing supporting documents, and providing evidence of prior notification to the debtor.
Submitting Enforcement Applications: Preparing the enforcement application in accordance with the required information and documents and following up on proceedings before the Enforcement Court.
Handling Objections and Disputes: Reviewing challenges and disputes related to performance orders or enforcement proceedings and taking the appropriate legal measures.
Providing Preventive Legal Advice to Companies: Reviewing contract templates, commercial papers, and internal credit and collection policies to reduce the risk of future payment defaults.

A lawyer’s role is not limited to following up on existing judicial proceedings. It also extends to establishing a legal framework that helps businesses protect their rights and reduce risks associated with financial transactions.

Twelfth: Frequently Asked Questions About Performance Orders and the Enforcement of Cheques and Promissory Notes

Can a Cheque Be Enforced Directly Without Filing a Lawsuit?

Yes, in principle. A cheque is considered an enforceable instrument under Article 7 of the new Enforcement Law, provided it meets the necessary legal requirements. An enforcement application may therefore be submitted without first filing a substantive lawsuit merely to establish the right evidenced by the cheque.

Can a Paper Promissory Note Be Enforced Directly?

The new Enforcement Law requires a promissory note to be registered on national electronic platforms to qualify as an enforceable instrument under Article 7. Therefore, the registration requirement and all other legal conditions must be verified.

What Is the Difference Between a Performance Order and a Judgment in a Commercial Lawsuit?

A performance order is a special procedure that allows a creditor to request an order requiring payment of a debt that is evidenced in writing, due for payment, and specified in amount, subject to the legal requirements.

An ordinary commercial lawsuit may involve a broader examination of the merits, such as disputes concerning contract performance, the value of outstanding amounts, or liability for breach of contract.

Is the Debtor Required to Be Notified Before Applying for a Performance Order?

Yes. The debtor must be notified in writing of the payment demand at least five days before the performance order application is submitted. The notice must include the intended date of submission.

How Long Does the Court Take to Issue a Performance Order?

The Commercial Courts Law provides that the court must decide on a performance order application within ten days from the date it is registered. This period relates to deciding on the application and does not necessarily mean that the recovery process will be completed within the same period.

Can the Debtor Challenge a Performance Order?

Yes. Under Article 71 of the Commercial Courts Law, the debtor may challenge the order before the competent court within fifteen days from the date of notification.

Does Acceptance of an Enforcement Application Mean That the Money Will Be Recovered Immediately?

Not necessarily. Acceptance of the enforcement application allows the legal enforcement procedures to begin, but actual recovery depends on the circumstances, the assets available, and any disputes or legal obstacles that may arise.

Can a Debt Be Claimed If the Promissory Note Is Not Registered?

The underlying financial right may still be claimed through a lawsuit or another applicable legal procedure, depending on the documents, the contractual relationship, and the relevant legal provisions. However, failure to register the promissory note may prevent the creditor from relying on it as a directly enforceable instrument under the new law.

Does the New Enforcement Law Apply to All Commercial Papers in the Same Way?

No. The law includes cheques among enforceable instruments, while requiring bills of exchange and promissory notes to be registered on national electronic platforms. Each type of commercial paper must therefore be assessed separately when determining the appropriate legal procedure.

Conclusion: Protecting Outstanding Dues Begins with a Valid Document and the Right Legal Procedure

Recovering the value of cheques and promissory notes does not depend solely on the existence of a debt owed by the debtor. It also depends on the validity of the documents, compliance with legal requirements, the arrival of the payment due date, and the selection of the appropriate legal procedure for claiming the right.

The new Enforcement Law has reinforced the importance of verifying the enforceable status of commercial papers, particularly following the introduction of electronic registration requirements for bills of exchange and promissory notes, while cheques remain included among enforceable instruments subject to the applicable legal requirements.

The Commercial Courts Law also provides a performance order procedure for claims that meet the requirements of written evidence, a due payment date, and a specified amount. This can help accelerate the resolution of such claims without initially resorting to ordinary lawsuit procedures.

Accordingly, protecting the financial rights of companies and investors begins with properly documenting transactions, reviewing commercial papers before using them, monitoring payment due dates, and seeking legal advice when necessary to determine the most appropriate procedure for each case.

Suleiman Al-Omari Law Office – Lawyers and Legal and Sharia Consultants

Suleiman Al-Omari Law Office provides specialized legal services in commercial claims, the review of commercial papers, performance order proceedings, enforcement applications, and the recovery of outstanding financial dues. The office also provides legal advisory services to companies and individuals, with the aim of protecting rights and strengthening legal positions in accordance with the laws and regulations applicable in the Kingdom of Saudi Arabia.

📞 Contact: +966537778130

This article is for informational purposes only and does not constitute a substitute for specialized legal advice.

Official References and Legislation

New Enforcement Law – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/67dd54bc-c33a-48c8-8356-b44700a9ab55/1
Commercial Courts Law – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/38334008-3b70-4c6c-b3af-aba3016a8061/1
Commercial Papers Law – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/4763eb94-047b-46f1-9697-a9a700f1b7ed/1
Implementing Regulations of the Enforcement Law – Ministry of Justice:
https://www.moj.gov.sa/ar/MediaCenter/News/Pages/NewsDetails.aspx?itemId=1786
Official Gazette – New Enforcement Law:
https://www.uqn.gov.sa/decisions-and-regulations/rules-and-regulations/4000869