Kuwait Court of Cassation principle number 276

Summary: - An action for the non-enforceability of a disposition made by a bankrupt debtor. In terms of its purpose, it is a means enabling the creditor to keep the property disposed of in his debtor’s ownership so that he can recover his debt from its price as against the transferee. - Non-enforceability against the State of dispositions by customers subject to Law 41 of 1993 after 2/8/1990 where made to relatives up to the second degree. Article 12 of the said Law. Establishment that the two dispositions were made by the bankrupt after that date to his brother. Its effect. Their non-enforceability against the Kuwait Investment Authority in its capacity as administrator of the bankruptcy estate. Rule: Since 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 non-enforceability of the latter’s disposition through the two dispositions set out in the statement of claim to his brother, the third respondent, in contravention of Article 12 of the Debts Law No. 41 of 1993—previously explained—which prejudices the debt of the former and permits it to seek the non-enforceability of these two dispositions against it as the representative of the body of creditors; and since this action, being an action for the non-enforceability of a disposition made by the bankrupt debtor, is, in terms of its purpose, a means enabling the creditor to keep the property disposed of in his debtor’s ownership so that he can recover his debt from its price as against the transferee; and since Article 12 of the Law—previously explained—provides for the non-enforceability against the State of dispositions by customers subject to it after 2/8/1990 where made to relatives up to the second degree; and since the two dispositions were made by the bankrupt after that date and to his brother—of the second degree—as aforesaid, they must be held unenforceable against the appellant, and the appeal is founded on a correct application of the law.