Kuwait Court of Cassation principle number 928

Using compensation due to a debtor subject to the Indebtedness Law, immediately upon its receipt, for immediate cash repayment of his indebtedness. An exception to the provisions on set-off in the Civil Code. Its implication. Set-off between the debt owed to the State and the compensation amount takes place as soon as the conditions for set-off are met, without the need for a judicial judgment - 179 - Obligation ordering it. Its effect. The amount of compensation due to the debtor for damage caused by the Iraqi invasion. It is regarded, from its receipt by the General Administration for Compensation, as property owned by the State. Article 7 of Law 41 of 1993. - Disbursement of compensation for damage caused by the Iraqi invasion. Its condition. Submission of a certificate from the Central Bank stating that the beneficiary is not indebted, directly or indirectly, under any of the purchased debts. This relates to public policy. Article 43 of the Indebtedness Law. The extent of the State’s liability for compensation for judicial acts: