Kuwait Court of Cassation principle number 2450

Issuance of a judgment declaring the debtor bankrupt. Its effect: ordinary creditors or holders of ordinary preferential rights may not assert their rights against the bankrupt or the bankruptcy estate through individual proceedings or proceed with an action brought before issuance of the judgment. They must submit their claims to the bankruptcy trustee to conduct 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 adjudicate disputed debts. This court's subject-matter jurisdiction pertains to 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—despite being an ordinary creditor. Its effect: the action must be ruled inadmissible. Contravention thereof: a violation of the law requiring cassation of the judgment.