A promissory note is a document that is drawn up according to certain formal conditions, and stipulated in the commercial paper system, whereby the writer of the promissory note undertakes to pay him a certain amount of money on a specific date or will be determined by the beneficiary.
The promissory note includes a set of benefits, including it being one of the most widely used and widespread commercial documents, and it is easy-to-use document in addition to the ease of receiving and delivery, and if there is someone who does not have the ability to receive cheques, it is easy to obtain promissory notes.
For more information on this subject, follow us in this article, where we will talk about the procedures and conditions for the dispute of the execution of a promissory note.
What is the dispute for the execution of a promissory note?
The dispute over the execution of a promissory note is one of the forms of objection to the promissory note and an appeal against it, This appeal occurs if there is an objective defect in the validity of the promissory note, and its purpose is to prevent and stop the execution procedures.
The competent judge investigates the matter and issues a decision, after verifying the case, to suspend execution. The decision is issued only after the judge verifies this allegation.
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Formula and conditions for the validity of the promissory note
Writing the bond for an order must take into account some conditions, namely:
- The promissory note be written in the middle of the document.
- After that, the agreed amount is written, in addition to the specific place and time, and the date in the day and year.
- This sentence should be written: I undertake to pay the agreed amount under this bond, with the debtor’s nationality written.
- Write down all the data pertaining to the creditor “who pays the amount”, and the name must be written in the quadruple form in addition to the personal ID number, as well as the place of residence.
- The person who took the money must sign the document.
- It is worth noting that the penalty that will result when the debtor is late in paying or refuses to pay must be clarified if the execution ruling of the bond is between a person and another commercial transaction.
Reasons: When to resort to submitting a dispute request for the execution of a promissory note
Among the reasons that lead to a contestant requesting the denial of a promissory note, is that there is a defect or deficiency in one of the “substantive” formal or non-formal conditions, and we will list these reasons for you in detail:
Firstly: the Formal reasons:
- There is a difference in the formal data of the promissory note.
If the promissory note is different in its formal data as if there is a difference in the wording of the pledge, then the promissory note is incomplete in relation to the form, and at that time the judge returns to the judge to suspend or invalidate the promissory note.
- The signature is forged
In the event of forgery of the signature, the executor has the right to challenge the validity of the document, and the procedure takes place by referring the signature from the Department of Execution to the forensic evidence, and if the decision of forgery was already made, then the judge must rule to stop the execution of the document and nullify it, and in the event that the signature is not forged, then it remains The bond is valid.
- The bond must be invalid.
Sometimes it happens that the executor of the bond is claimed by another person other than the real owner of the bond, and this is considered a lack of capacity, so the executor disputes the lack of capacity, in order to prove that the one who intends to execute is another debtor and not him.
Second: Non-formal reasons “objective reasons”
- Exoneration: This means that the owner of the bond has cleared his debt by paying the specified amount, but after a period of time, he is required to pay again through the Execution Court.
- Postponing the payment of the amount, after issuing the executive document, through an agreement between the creditor and the debtor to postpone the payment, but the creditor demands payment before the specified time.
- Debt assignment after the issuance of the executive bond, i.e. it was agreed between the creditor and the debtor to demand payment from another person.
- Reconciliation occurs between the creditor and the debtor after the issuance of the executive document, and this situation often appears between relatives or those who are related to them.
- The amount withheld is greater than the amount of the debt, for example, if the debt is 300 thousand riyals, while the amount withheld is 500 thousand riyals.
- The occurrence of death after the issuance of the executive bond.
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Procedures for requesting the opening of a dispute for the execution of an order bond electronically
You can request to open a dispute for the execution of a promissory note electronically through:
- Log in to the Najiz portal website and log in through the national portal.
- You will see an implementation menu, you can choose to submit an application.
- Next, you choose the type of request, fill out the form, and read the pledge.
- Then you need to add the order details.
- Then you add a port against it.
- After that, you fill in the data for the port against it, press Add and then Save and Continue.
- You also have to fill in the data that appears in front of you of the executive document and upload the required attachments, then click on Save and Send.
- Then your order number will appear.
Types of dispute execution of a promissory note
Disputes for the execution of a promissory note are divided into two types:
First: Formal disputes, which are:
- The existence of a difference in the form of the bond and the imbalance of one of the formal conditions of the bond, or forgery and denial of the signature.
- lack of character
Second: Non-formal “substantive” disputes, which are:
- Exoneration occurs after the issuance of the executive bond.
- Postponement after issuance of the executive bond.
- The transfer after the issuance of the executive bond.
- Reconciliation or fulfillment is the issuance of the executive document.
- Settlement under the bond.
- Thunder disputes when an error occurs.
- Dispute in the event that the interdicted money is greater than the debt money.
The competent court to consider disputes regarding the execution of a promissory note
According to Article No. 3 of the Executive Regulations of the Execution Law, any dispute related to verifying the validity of the executive document and related to it is within the competence of the execution judge, for example: to invalidate a claim due to a defect in consent, or a lawsuit for forgery or denial of signing the document.
The difference between denying signing a promissory note and claiming forgery
Allegation of forgery is a type of fraud, which is falsification and alteration of the original facts contained in the bond, whether it is a forgery in the content of the bond in a year or in the signature.
And that this change that occurs due to lying and deception harms one of the parties or the interest in general, it is worth noting that whoever claims that forgery has occurred must clarify the matter in detail and accurately on this issue, and whether this forgery occurred in the signature or in the content of the bond.
In addition to the fact that the forgery occurred changes the incident and makes it incorrect, or a change occurred in the declarations of the parties, or the impersonation of others occurred.
Either denying the signature can be taken from the person by threat and beyond his will, or the signature has been forged, meaning that it does not belong to the debtor.
In this case, the court resorted to requesting an urgent stay of execution, and the court considered the claim and issued a judgment after verification.
Procedures followed after adjudication of a dispute for the execution of a promissory note
- The court starts by verifying the matter, and in the event that it is proven that the creditor has obtained all his rights from the debtor, then he is forced to hand over the bond document to the debtor.
- This procedure is done by means of a letter sent by the court, the content of which is to deliver the document quickly to the other party.
- In the event that he refuses to surrender, he will be punished according to the law of the Saudi regime.
- This step has a name in the law, and it is a “lawsuit to stop the claim,” which means that the creditor has taken his right in full and denies it. The debtor resorts to wisdom and files this lawsuit in order for the creditor to be punished.
The penalty for lying in denying signing a promissory note and the penalty for false claim of forging a promissory note
Saudi law sets a penalty that includes imprisonment and a fine in the event that the debtor lied and claimed that there was a defect in the documents, and the opposite was proven to you after verifying the evidence, and proving that this accusation of forgery is invalid.
The fine is determined according to the judge’s discretion, and takes into account the type of bail, in addition to resorting to the Saudi laws related to this case.
Punishment for forging a promissory note
The Kingdom has set mandatory laws and penalties for anyone who forges a promissory note, and according to Saudi regulations, the penalty imposed for the perpetrator of this crime is imprisonment for a period of up to 5 years, and a fine of no less than 400,000 Saudi riyals, until this crime is eliminated and the rights of Citizens.
The best lawyer in the Execution Court in Riyadh
If you have a dispute related to business and want to resort to litigation, do not hesitate to contact the commercial system experts at Al Othman Law Firm, because they have legal experts that extend their expertise For more than 15 years in commercial systems, and experience their staff of consultants exceeds more than 22 years in Saudi commercial systems, and Al Othman Company includes the best commercial lawyer in Saudi Arabia, Riyadh.
Al-Othman Lawyers and Consultants Office is pleased to serve you, so do not hesitate to contact and consult them.
Call the commercial Law experts at Al Othman office on +966-535-008-888
Frequently Asked Questions
What is the difference between an order bond and an executive bond?
- As for the promissory note, it is a commitment owed by its owner to pay an amount of money at a specific date to a person, and this bond includes the signature of both parties. in the competent court.
- The executive document is the document in which the complainant requests to stop the execution of the judgment permanently or requests to prevent the execution of the judgment.
What is the validity period of the bond for an order?
The law in the Kingdom of Saudi Arabia clarified the validity period of the bond for an order, which is three years from the date of maturity of the bond, and this is for the purpose of obtaining the financial dues that were agreed upon in the commercial papers, and if the debtor objects to the payment of the amount of money, then the creditor has the right to file a lawsuit in court.
Conclusion
Thus, we have come to the end of the article in which we talked about the procedures and conditions for the dispute over the execution of a promissory note, and it is worth noting that a lawyer who specializes in promissory notes and similar matters should be used, and the best lawyer in Jeddah and Riyadh that you can rely on and consult is the Al Othman Law Firm, as it includes a distinguished group who specialize in such issues, do not hesitate to contact them.
Call the commercial Law experts at Al Othman office on +966-535-008-888
