Kuwait Court of Cassation principle number 1826

A judgment declaring a trader bankrupt. Its effect. The creation of a legal status whereby he is considered bankrupt and the resulting consequences, including the formation of the body of creditors from unsecured creditors and holders of general preferential rights whose rights arose before issuance of the judgment. They are prohibited from pursuing individual actions from the date of that judgment. Reversal of the judgment. Its implication. All consequences of bankruptcy cease and are deemed never to have existed from their inception. The litigants may invoke the effect of this reversal before the Court of Cassation, and the Court may raise it of its own motion. The reason therefor. Bankruptcy rules relate to public policy. Contravention thereof and the Civil Circuit of the Court of Appeal's refusal to admit the application for assessment of lawyers' fees. This vitiates the judgment and requires its cassation. 3- Action for a declaration of bankruptcy:-