Kuwait Court of Cassation principle number 1399

Composition to avert the bankruptcy of customers whose debts were purchased under Law 41 of 1993. (*) Its condition. Submission by the customer, whether debtor or guarantor, or by the Public Investment Authority, of an application therefor to the competent division of the Court of First Instance. It may rule either to continue examining the application for a declaration of bankruptcy or to approve the composition where its conditions are satisfied and ratify it. Effect thereof. The effect of this judgment extends to the debtors or guarantors who were parties to the composition, but not to others who were not parties thereto, and the rule prohibiting challenges to the judgment ratifying the composition applies. 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 which exceeded its scope falls outside the application of the preceding rule, and its judgment may be challenged by the methods of challenge prescribed by law.