Kuwait Court of Cassation principle number 1659

Ordinary creditors and creditors holding general preferential rights. They may not take individual proceedings against the debtor. They must submit an application to the bankruptcy administrator, who has exclusive competence to conduct a collective settlement of the debtor’s assets. Reason therefor. Article 597/1 of the Commercial Code. - 290 - Commercial - Bringing actions against the bankrupt or the bankruptcy estate to claim a right, or proceeding with an action previously brought against the bankrupt. Impermissible. The creditor must submit his debt in the bankruptcy proceedings so that the Public Investment Authority may verify it in its capacity as general administrator of the bankruptcy estate and submit it to the bankruptcy court. The court alone has jurisdiction to decide disputed debts. - The Public Investment Authority in its capacity as bankruptcy administrator. Is not a universal or particular successor to the bankrupt. - A judgment declaring the company bankrupt. Its employee bringing an action, after issuance of the bankruptcy declaration judgment, seeking to oblige the Public Investment Authority to pay his end-of-service gratuity. His failure to follow the procedure prescribed by law by applying to join the body of creditors that comes into existence immediately upon issuance of the aforementioned judgment. Its effect. Inadmissibility of the action. - Nullity of the company contract:-