Kuwait Court of Cassation principle number 546

Composition to prevent the bankruptcy of customers whose debts were purchased pursuant to Law 41 of 1993. Its condition. Submission of an application therefor by the customer, as debtor or guarantor, or by the Public Investment Authority to the competent circuit of the Court of First Instance, which may rule either to continue examining the application for a declaration of bankruptcy or to approve the composition where its conditions are met and ratify it. The effect thereof. The effect of this judgment extends to those debtors or guarantors who were parties to the composition, and not to others who were not parties thereto. Applicability of the rule that a judgment ratifying the composition may not be appealed. Article 870 of the Commercial Code. The court's exceeding the scope of this composition and extending its effects to persons who were not parties thereto. Its implication. That the extent to which it exceeded that scope falls outside the application of the preceding rule, and its judgment may be challenged through the methods of appeal prescribed by law.