Kuwait Court of Cassation principle number 3790

Composition to avert the bankruptcy of clients whose indebtedness was purchased under Law 41 of 1993. Its condition. The client, whether debtor or guarantor, or the Public Investment Authority must submit an application therefor to the competent division of the Court of First Instance, which may rule either to continue examining the application for a declaration of bankruptcy or to approve the composition where its conditions are met and ratify it. Effect thereof. The effects of this judgment extend to the debtors or guarantors who were parties to the composition, but not to others who were not parties thereto, and the rule prohibiting an appeal against a judgment ratifying the composition applies. Article 870 of the Commercial Code. The court exceeding the scope of this composition and extending its effects to persons who were not parties thereto. Meaning thereof. The matters in which it exceeded that scope fall outside the application of the preceding rule, and its judgment may be challenged by the methods of appeal prescribed by law. Financial patrimony