Kuwait Court of Cassation principle number 3063

Nullity means nonexistence. - Giving effect to a void contract lacking its constituent elements is contrary to public policy. - 568 - Obligation - A judgment declaring a company void leaves behind a de facto company to be liquidated under the general rules governing de facto companies. It may not be invoked against third parties acting in good faith and shareholders. - An action for nullity is time-barred upon the lapse of 15 years from the date of the contract. Article 186/3 of the Civil Code. It concerns the institution of an action; there is no basis for invoking it when nullity is raised by way of defence. Reliance on the bankruptcy judgment in this regard. Impermissible.