Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 1800

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

The provisions of Law No. 32 of 1969 concerning the Regulation of Commercial Premises Licences. The prohibition on issuing a licence to a non-Kuwaiti and the requirement that he be the owner of the establishment's capital or of a share of no less than 51% thereof and that he be responsible for management. Its purpose. Its provisions concern public policy. Their application with immediate effect from their entry into force to the effects produced by contracts predating them. The judgment's ruling that the contract is void because the non-Kuwaiti owned the establishment with all its contents, including the capital, throughout the duration of the contract extending beyond the entry into force of the aforementioned law. It does not vitiate it. The distinction between exploitation of the licence and exploitation of the premises. There is no scope for it. The reason therefor. - 313 - Commercial
Arabic original
أحكام القانون رقم ٣٢ لسنة ١٩٦٩ بشأن تنظيم تراخيص المحلات التجارية. حظر صدور الترخيص لغير الكويتي ووجوب أن يكون هو المالك لرأسمال المنشأة أو لحصة لا تقل عن ٥١ ٪ منه وأن يكن المسئول عن الإدارة. الغاية منه. تعلق أحكامه بالنظام العام. سريانها بأثر مباشر من وقت العمل بها على الآثار التي ترتبها العقود السابقة عليها. قضاء الحكم ببطلان العقد لملكية غير الكويتي للمنشأة بسائر محتوياتها بما فيها رأس المال طول مدة سريان العقد الممتدة إلى ما بعد العمل بالقانون المذكور. لا يعيبه. التفرقة بين استغلال الترخيص واستغلال العين. لا محل لها. علة ذلك. - ٣١٣ - تجاري
Original Arabic judgment citations

(الطعن ٥٣/١٩٧٤ تجاري جلسة ٧/٢/١٩٧٨ - مج ٧ س ص ١٨٠)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 313. PDF pages: 313.

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