Kuwait Court of Cassation principle number 3380

Interest collected by a creditor on his debt. Interest may not be collected on accrued interest, nor may the total interest exceed the principal. Exception. Cases in which the Commercial Code permits the collection of compound interest, such as interest on current accounts with banks, where interest on interest may be calculated while the account remains open. This prohibition concerns public policy. Consequence thereof. Whoever paid such interest has the right to recover the amount exceeding the statutory limit pursuant to Article 264 of the Civil Code. - An action to recover sums paid in excess. Its subject matter differs from that of the action in which judgment was rendered for the principal debt and its interest. Consequence thereof. The latter judgment has no res judicata effect in the recovery action because the subject matter of each differs.