Kuwait Court of Cassation principle number 2858

Issuance of a judgment declaring bankruptcy. Its effect. From its date, the bankrupt is divested of the administration of all his assets, whether related to his business or not. The reason: all his assets secure payment of his debts, and his patrimony is indivisible. This includes assets devolving upon him while he is bankrupt, and he may not conduct actions relating to them except those confined to conservatory measures that benefit his creditors and do not prejudice them. Example. An appeal against the first-instance judgment by the respondent company, which had been adjudged bankrupt, rather than by the bankruptcy administrator. Void. This is not altered by the subsequent judgment setting aside the bankruptcy judgment. The reason: admissibility of a challenge depends on the challenger having capacity at the time of filing - 484 - Procedure the challenge. The judgment’s disregard of the plea that this appeal was void. An error in the application of the law requiring its cassation.