Kuwait Court of Cassation principle number 513

Kuwait Finance House is a Kuwaiti shareholding company. Its subjection, in respect of the banking services and transactions it performs, all aspects of its activity, and the rights resulting or obligations arising therefrom, exclusively to the provisions of Decree-Law No. 72 of 1977 authorizing its establishment 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. This prohibition applies to interest in all its forms, whether compensatory—in return for the debtor's use of a sum of money—or default interest resulting from delay in payment thereof. The reason: interest was expressed in general, unrestricted terms without specification of a particular type. This is not altered by saying that the latter constitutes compensation for the debtor's delay in payment. The reason: harm in the case of interest is presumed by an irrebuttable presumption. In the event of delay, this does not preclude the creditor's right to proceed against the debtor for harm that must be proved in accordance with the general rules. Contravention thereof. An error in the application of the law requiring cassation of the judgment. 6- In matters of industrial plots:-