Kuwait Court of Cassation principle number 180

Summary: - An action for the ineffectiveness of a disposition made by a bankrupt debtor. In terms of its purpose, it is a means whereby the creditor can keep the property disposed of in the ownership of his debtor so that he can recover his debt from its price as against the transferee. - Dispositions by clients subject to Law 41 of 1993 after 2/8/1990 are ineffective as against the State whenever made to a relative up to the second degree. Article 12 of the aforementioned Law. Establishment that the 2 dispositions were made by the bankrupt after that date to his brother. Its effect: their ineffectiveness as against the Kuwait Investment Authority in its capacity as administrator of the bankruptcy estate. Rule: Whereas it is apparent from the papers that the appellant, in its capacity as administrator of the bankruptcy estate of /............, brought the present action seeking the ineffectiveness of the latter's disposition under the 2 dispositions set out in the statement of claim to his brother, the third respondent, in violation of Article 12 of the Indebtedness Law 41 of 1993—previously mentioned—which prejudices the debt of the former and permits it to seek the ineffectiveness of these 2 dispositions against it as representing the body of creditors; and whereas this action, being an action for the ineffectiveness of a disposition made by a bankrupt debtor, is, in terms of its purpose, a means whereby the creditor can keep the property disposed of in the ownership of his debtor so that he can recover his debt from its price as against the transferee; and whereas Article 12 of the Law—previously mentioned—provides that dispositions by clients subject to it after 2/8/1990 are ineffective as against the State whenever made to a relative up to the second degree; and whereas the 2 dispositions were made by the bankrupt after that date to his brother—of the second degree—as aforesaid, they must be ineffective as against the appellant, and the appeal is founded on a correct application of the law.