Judicial Interpretation of Saudi Bankruptcy Regulations

Ahmed Hussain Fagehy

Department of Law, College of Business Administration, Prince Sattam bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia

Abstract:

The laws and regulations issued by the legislative authorities are subjected to legislative as well as jurisprudential interpretation carried out by the jurists, commentators and explainers. In the context of Saudi Arabia, where there is a predominance of the Islamic Law and the guardianship of the King, a question arises whether any interpretation can be provided in the event of a conflict between the legislative and judicial agencies. Specifically, this study aimed at understanding the concept of judicial interpretation of statutory articles, and examining those interpretations in the light of the Saudi bankruptcy regulations. The research adopted the inductive approach to the bankruptcy provisions published in the scientific portal of the Ministry of Justice and analyzed the regulations to derive the judges' interpretation of the regulations with the help of examples. The findings revealed that judicial interpretation is not binding except for the parties in respect of the ruling issued once it becomes final. The executive authorities reformulate every new regulations and procedures in accordance with the judicial interpretation, and scholars and jurists also organize their explanations and their writings on the practical application of the regulation under study and research. The study recommends the judicial authorities to limit the articles of the bankruptcy law and choose a unified interpretation consistent with the objectives of the law. The legislative authorities should also periodically amend the bankruptcy laws and regulations to keep pace with practical realities.

Keyword:

bankruptcy, legislation and regulations, interpretation of regulations, authoritative interpretation, judicial authority.