Kuwait Court of Cassation principle number 976

Issuance of a judgment declaring the debtor bankrupt. Its effect: ordinary creditors or holders of ordinary preferential rights may not pursue their rights against the bankrupt or the bankruptcy estate through individual proceedings or continue an action brought before issuance of the judgment. They must submit their claims to the bankruptcy administrator to carry out a fair collective settlement. Article 597 of the Commercial Code. - The competence of the Public Investment Authority, in its capacity as general administrator of the bankruptcy estate, to verify the debt and then refer the matter to the bankruptcy court to determine disputed debts. This court’s jurisdiction is subject-matter jurisdiction and a matter of public policy. - A worker bringing an action claiming his end-of-service gratuity after issuance of a judgment declaring the employer bankrupt—without submitting it to the bankruptcy commissioner—although he is an ordinary creditor. Its effect: the action must be ruled inadmissible. A departure therefrom: a violation of the law requiring cassation of the judgment.