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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles
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Chapter One - Make a cheque
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Subchapter III: Penal sanctions
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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles
Law Summary Record
Type:
Law
Number:
16
Date:
25/08/1971 Corresponding to 04/07/1391 Hijri
Number of Articles:
477
Status:
In force
Official Gazette :
Issue:
7
Offcial Journal Issue
Publication Date:
01/01/1971 Corresponding to 05/11/1390 Hijri
Page from:
3458
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Subchapter III: Penal sanctions
451 Article
Any body who draws with bad intention a check that has no existing “in return of fulfilment”, & un-withdraw able, or has in return of fulfilment less than the amount of the check or refunded in bad intention (after giving the check) the in return of fulfilment totally or partially making the remaining amount less than the amount of the check, or ordered, with bad intention, the drawee not to pay the amount of the check...shall be penalized as per penal law.
452 Article
In case of filing a case of penal action against the drawer as per provisions of the above article, check holder who claimed for the civil rights may ask the court to order to him an amount equal to the unpaid amount from the check in addition to the legal interests on said amount as of the day of submission of the check for repayment plus the complementary compensations if required.
Public prosecution shall publish names of persons, who shall be convicted as per above article, in the official daily newspaper showing their professions, citizenships and amount of penalty.
453 Article
Any drawee -who refuses to pay with bad intention a check drawn on his closet that has “in return of fulfilment” and was not objected - shall have to be penalized for an mount of not more than1000Riyals, without prejudice to the compensation entitled to the drawer against harm caused to him due to the non fulfilment, besides the harm caused to his credit.
454 Article
Any drawee who declares about availability of “in return of fulfilment” which is less than what he really have (with prior knowledge), shall be penalized for an amount not exceeding 500 Riyal.
455 Article
A penalty of not more than 500 Riyal shall be applied to whomever:-
Issue a check without date or with a wrong date,
b- Withdraw a check on a non-bank
repay a check having no date and whomever receives it for clearing
Withdraws a check which has no complete “in return of fulfilment” (for withdrawal) , provided to not breach provisions stated in articles
451
,
452
456 Article
Each and every bank- that has “in return of fulfilment” and has given his creditor a blank check book to pay him accordingly from his cabinets - should write on every check the name of the person who has received the check. Any violation to this article shall be fined an amount not exceeding the sum of 100 Riyals.
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