Kuwait Court of Cassation principle number 506

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, exclusively to the provisions of Decree-Law No. 72 of 1977 authorizing its incorporation and Law 32 of 1968 concerning Currency, the Central Bank of Kuwait and the Regulation of the Banking Profession, insofar as they do not conflict with the provisions of Islamic Sharia. Exclusion of the application of interest to all its transactions. Application of this prohibition to interest in all its forms, whether compensatory—as consideration for the debtor's use of a sum of money—or default interest arising from delay in payment thereof. Reason therefor: interest was expressed in general, unrestricted terms without limitation to a particular type. This is not altered by saying that the latter is compensation for the debtor's delay in payment. Reason therefor: damage in the case of interest is presumed by a presumption that admits no proof to the contrary. In the event of delay, this does not preclude the creditor's right to seek recourse against the debtor for damage that must be proved under the general rules. Contravention thereof. An error in the application of the law requiring cassation of the judgment. In lease matters: