Kuwait Court of Cassation principle number 338

Endorsement of a bill of exchange or cheque. Its effect. - The rule that endorsement purges the negotiable-instrument obligation of grounds that may attach to it and lead to its rescission or invalidity - 406 - Civil and Commercial Procedure, as well as defences based on the debtor’s relationship with the first payee. Its condition: that the holder be in good faith. - Good faith is presumed. The burden of proving the holder’s bad faith rests on the debtor having an interest in invoking the defences. Bad faith in this context. Its nature: not merely the latter’s knowledge of the plea or grounds of defence at the time of endorsement, but the intention to harm the debtor when acquiring the bill of exchange or cheque.