Kuwait Court of Cassation principle number 661

Issuance of a judgment declaring bankruptcy. Its effect. Divesting the bankrupt, from its date, of the power to administer all his property, whether related to his trade or not. The reason: all his property secures payment of his debts, and his patrimony is indivisible. This extends to property devolving upon him while he is bankrupt, and he may not conduct proceedings relating thereto except those confined to conservatory measures that benefit his creditors and do not harm them. Example. An appeal against the first-instance judgment by the respondent company, which had been declared bankrupt, rather than by the bankruptcy trustee. Invalid. This is not altered by a subsequent ruling setting aside the bankruptcy judgment. The reason: admissibility of an appeal depends on the appellant having capacity at the time the appeal is lodged. The judgment’s disregard of the plea that this appeal was invalid. An error in the application of the law requiring its cassation.