Kuwait Court of Cassation principle number 3441

Judgments issued by the Court of Appeal concerning disputes relating to the leasing of real estate and compensation arising therefrom, over which the Rentals Circuit of the Court of First Instance has jurisdiction, may not be challenged by cassation. The criterion for determining whether or not a judgment has been issued in a rental dispute is whether or not the dispute falls within the scope of application of Decree-Law No. 35 of 1978. - The State's approval of the allottee's assignment of the industrial plot to another. Its effect: the creation of a direct relationship between the State and the new beneficiary, without the assignor acting as intermediary. Its implication: the termination of the first operator's contract and, implicitly, the sublease issued by him, such that the new licensee is not a successor to the former licensee. The effect thereof: the aforementioned lease contract falls outside the category of rental disputes over which the Rentals Circuit of the Court of First Instance has jurisdiction, and the prohibition contained in Article 26 of the aforementioned Law does not apply. It may be challenged by cassation. The challenged judgment's departure from this view and its dismissal of the plea that that Circuit lacks jurisdiction. This vitiates it and requires its cassation. - 678 - Lease