Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 2767

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

English translation of the principle

The disputed debt arising from an interest-free loan upon which the contracting parties' common intention converged and which was not intended for a commercial purpose. Its effect. It is subject to the provisions of the Civil Code prohibiting agreement on interest in return for the use of a sum of money or for delay in performing the obligation. Any such agreement is absolutely void as a matter of public policy. The judgment's contravention of this. It renders it defective for violating the law and erring in its application and requires its cassation.
Arabic original
نشأة الدين محل النزاع عن قرض حسن انعقدت عليه الإرادة المشتركة للمتعاقدين ولم يكن القصد منه تجارياً. أثره. خضوعه لأحكام القانون المدني التي تحظر الإتفاق على فوائد مقابل الانتفاع بمبلغ من النقود ولا مقابل التأخير في الوفاء بالالتزام. وبطلان كل اتفاق على ذلك بطلانا مًطلقاً متعلقاً بالنظام العام. مخالفة الحكم ذلك. يعيبه بمخالفة القانون والخطأ في تطبيقه ويُوجب تمييزه.
Original Arabic judgment citations

(الطعن ٨٥٦/٢٠٠٢ تجاري جلسة ١٢/١١/٢٠٠٣ مج القسم الخامس - المجلد الثالث ص ٥٢٦)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 474. PDF pages: 474.

Ask the assistant about this principle

Guidance based on the principle and its source details, separate from the original collection text.

Related principles

Continue your case in the legal workspace

Open legal workspace