Kuwait Court of Cassation principle number 3633

Determining the state of cessation of payments that justifies a declaration of bankruptcy. Within the authority of the trial court. Condition therefor. - Cessation of payments by a customer subject to the provisions of Law 41 of 1993. The Public Prosecution may request a declaration of his bankruptcy. Article 14 of the said Law. - The customer for purposes of applying the provisions of Law 41 of 1993. What is meant thereby. Article 1. The debtor's being subject to the provisions of the said Law and his cessation of payments by refraining from payment. Sufficient for a declaration of his bankruptcy. There is no basis for requiring that the debtor be a merchant and have ceased paying his debts pursuant to the bankruptcy declaration provisions contained in the Commercial Code. Rationale therefor. The special law restricts the general law. - The appellant's being subject to Law 41 of 1993 and his failure to fulfil his obligations pursuant to its provisions. Its effect. The debt becomes due and he is obliged to pay it, its accessories, and whatever may have been remitted thereof up to the date of payment. A judgment declaring his bankruptcy is permissible. This is not altered by his eagerness to settle his financial position with the State so long as he has not paid the remainder of the indebtedness purchased for its account and the state of his cessation of payments has ceased.