Kuwait Court of Cassation principle number 1878

Issuance of a judgment declaring bankruptcy. Its effect. Article 597 of the Commercial Code. - Secured creditors and holders of special preferential rights may bring or continue actions against the bankruptcy administrator, and may commence or continue execution against the assets securing their rights. A government entity owed amounts due to the Public Treasury has the same right to bring actions for them and continue them against the bankruptcy administrator. The reason therefor. Its priority in rank over holders of special preferential rights and secured creditors. Articles 1063, 1072, Civil Code. The challenged judgment's departure from this view and its affirmation of the first-instance judgment staying the ancillary action brought by the creditor government entity claiming its dues despite the joinder of the bankruptcy administrator. This vitiates it and requires its cassation in respect of the ancillary action.