Kuwait Court of Cassation principle number 1656

Kuwait Finance House is a Kuwaiti shareholding company. Its subjection, in respect of the banking services and operations it conducts, all aspects of its activities, and the rights resulting or obligations arising therefrom, to the provisions of Decree-Law - 325 - Obligation No. 72 of 1977 authorizing its incorporation and Law 32 of 1968 concerning Currency, the Central Bank of Kuwait and the Organization of the Banking Profession, insofar as they do not conflict with the provisions of Islamic Sharia, to the exclusion of others. Exclusion of the application of interest to all its transactions. This prohibition applies to interest in all its forms, whether compensatory—in consideration of the debtor's use of a sum of money—or default interest arising from delay in payment thereof. The reason for this: interest was expressed in general, unrestricted terms without specification of a particular type. This is not altered by saying that the latter is compensation for the debtor's delay in payment. The reason for this: damage in interest is presumed by an irrebuttable presumption. In the event of delay, this does not preclude the creditor's right of recourse against the debtor for damage requiring proof under the general rules. Contravention of this. An error in the application of the law requiring cassation of the judgment.