Kuwait Court of Cassation principle number 1401

Issuance of a judgment declaring the debtor bankrupt. Its effect: ordinary creditors or holders of ordinary preferential rights may not claim their rights against the bankrupt or the bankruptcy estate through individual proceedings, or proceed with an action previously brought before issuance of the judgment. They must submit their claims to the bankruptcy administrator to conduct a fair collective settlement. Article 597 of the Commerce Law. - The competence of the Public Investment Authority, in its capacity as general administrator of the bankruptcy estate, to verify the debt, then refer the matter the bankruptcy court to adjudicate disputed debts. This court's subject-matter jurisdiction is a matter of public policy. - A worker's bringing an action claiming end-of-service gratuity after issuance of a judgment declaring the employer bankrupt - without submitting it to the bankruptcy commissioner - despite being an ordinary creditor. Its effect: the action must be declared inadmissible. Contravention thereof: a violation of the law requiring cassation of the judgment.