Kuwait Court of Cassation principle number 4180

A judgment declaring a trader bankrupt. Its effect. Creation of a legal status whereby he is considered bankrupt and the effects consequent upon it, including formation of the body of creditors from ordinary creditors and holders of general preferential rights whose rights arose before issuance of the judgment. They are prohibited from pursuing individual actions from the date of that judgment. Setting aside the judgment. Its import. All effects of bankruptcy cease and are deemed never to have existed from their inception. The parties may invoke the effect of this setting aside before the Court of Cassation, and the court may raise it of its own motion. The reason for this. Bankruptcy rules concern public policy. Departure from this and the Civil Circuit of the Court of Appeal's refusal to admit the application for assessment of lawyers' fees. Renders the judgment defective and requires its cassation. - 733 - Procedure