Kuwait Court of Cassation principle number 2810

Res judicata. Its criterion. What falls outside its scope: the settlement contract. The reason for this: it is no more than a purely non-contentious judicial act that does not determine an existing dispute between the parties and therefore does not have the authority of judgments. - A composition to avert bankruptcy is a contract of agreement between the debtor and creditors concluded in accordance with special procedures and conditions under the supervision of the court. Its approval by the court. Its effect. Application of the procedures and provisions prescribed in the Commercial Code concerning approval of the composition. - Bringing an original action for nullity or rescission of a composition contract to avert bankruptcy. Permissible where the conditions prescribed in Articles 785, 786 of the Commercial Code are met. It differs in this respect from judicial judgments, which may not be challenged by an original action for nullity. Its implication. The court's approval of this composition is no more than a purely non-contentious judicial act that does not acquire the authority of judicial judgments.