Kuwait Court of Cassation principle number 3092

Giving effect to a void contract whose essential elements were not satisfied is contrary to public policy. - A judgment declaring a company void leaves behind a de facto company to be liquidated in accordance with the general rules governing a de facto company. It may not be invoked against third parties acting in good faith and shareholders. - The nullity action is time-barred upon the lapse of fifteen years from the date of the contract. Article 186/3 Civil. Its relation to bringing an action affords no basis for invoking it when nullity is raised by way of defence. Reliance on the bankruptcy judgment in that regard. Impermissible.