Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 409

State of Kuwait · Pleadings — Part Two · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

Issuance of a judgment declaring bankruptcy. Its consequence is that, from its date, the bankrupt is divested of the administration of all his assets, whether related to his business or not. The reason therefor. All his assets secure payment of his debts and his patrimony is indivisible. This extends to assets devolving upon him while he is bankrupt, and he may not conduct actions relating thereto except those confined to conservatory procedures in which taking the initiative benefits his creditors and does not harm them.
Arabic original
صدور حكم شهر الإفلاس. أثره غل يد المفلس من تاريخه عن إدارة جميع أمواله سواء كانت متعلقة بتجارته أم لا. عله ذلك. أن أمواله كلها ضامنة للوفاء بما عليه من ديون وذمته المالية لا تتجزأ. شمول ذلك للأموال التي تؤول إليه وهو في حالة الإفلاس ولا يجوز له مباشرة الدعاوى المتعلقة بها إلا ما يكون قاصراً على نطاق الإجراءات التحفظية التي تفيد المبادرة فيها دائنيه ولا تضرهم.
Original Arabic judgment citations

(الطعن ٣٧٨/٢٠٠٠ تجاري جلسة ٢/٦/٢٠٠١ مج القسم الرابع المجلد الأول ص٥٢١)

Source: Court of Cassation legal principles collection — Pleadings — Part Two — Ministry of Justice — Court of Cassation — Technical Office. Printed page 82. PDF pages: 79.

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