Bounced Cheques and Promissory Notes in Saudi Arabia: How to Recover the Money

Cheques: an executive instrument

Under the Enforcement Law, a cheque is an executive instrument. If it bounces, the holder can file an enforcement request with the enforcement court, without first suing for a judgment.

The debtor is notified and given a short period to pay. If the debtor does not pay, compulsory measures follow, starting with disclosure and attachment of assets. See Enforcing a Judgment in Saudi Arabia.

Cheques: possible criminal liability

Issuing a cheque without sufficient funds can also be a criminal offense under the Negotiable Instruments Law. The enforcement route and the criminal route are separate. Pursuing one does not cancel the other.

Promissory notes and bills of exchange: registration now matters

The current Enforcement Law changed the position for promissory notes (sanad lamr) and bills of exchange:

• They count as executive instruments only if they are registered on the national electronic platforms.
• Older paper instruments may be subject to transitional requirements. Check the instrument's issue date and current eligibility before seeking enforcement.

If you hold a paper promissory note, review its issue date, form and registration status promptly. Check whether direct enforcement remains available or whether a separate claim is needed.

Example: A Jubail equipment rental company holds an older paper promissory note as security for hire charges. Before filing, it checks whether the note meets current enforcement and transitional requirements, or whether it needs to pursue the underlying debt by another route.

Enforcement time limits

Enforcement requests are subject to time limits and any applicable special rules. Check the due date and the current requirements promptly.

What to keep

• the original cheque or note, and copies of both sides;
• the bank's return or objection record showing why the cheque was not paid;
• the underlying contract, invoices or loan record;
• any messages in which the issuer acknowledges the debt or promises payment.

Steps to take

1. Present the cheque to the bank and keep the return or objection record.
2. Send a written demand to the issuer. This often produces payment.
3. File an enforcement request with the cheque or registered note.
4. Consider the criminal route for a bounced cheque, depending on the facts.
5. Review older paper instruments promptly against the current transitional and registration requirements.

For issuers

Do not treat a cheque as a simple "guarantee". If it is presented and bounces, it can be enforced directly and can expose the issuer to criminal liability under the Negotiable Instruments Law.

If there is a genuine dispute about the underlying debt, raise it in writing and get advice quickly. Objections do not stop enforcement unless the court orders a stay.