Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 546

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

English translation of the principle

Commercial companies—except a silent partnership—have juridical personality from their formation and are independent of the persons of their partners. - A partner's signing a loan agreement with the bank in his personal capacity, failure to pay the amounts under that agreement when due, and the bank's suing him in his personal capacity in an action in which judgments were issued at first instance and on appeal ordering him to pay the amount, followed by his signing a debt settlement agreement with the creditor bank in his personal capacity, with the agreement containing no mention of his capacity as a partner in the company or that the company is a party to it. Its implication. The effect of the agreement extends to its two parties in their personal capacities. The judgment's contravention of this. It vitiates it and requires its cassation.
Arabic original
الشركات التجارية - عدا شركة المحاصة - ثبوت الشخصية المعنوية لها منذ تكوينها واستقلالها عن أشخاص الشركاء فيها. - توقيع الشريك بصفته الشخصية مع البنك على عقد قرض وعدم أداء المبالغ محل هذا العقد في ميعاد استحقاقه واختصام البنك له بصفته الشخصية في دعوى صدر فيها الحكم ابتدائياً واستثنافياً بالزامه بأداء المبلغ ثم توقيعه اتفاقية تسوية مديونية مع البنك الدائن بعد ذلك بصفته الشخصية وخلو الاتفاقية من صفته كشريك في الشركة وأن الشركة طرفاً فيها. مؤداه. انصراف أثر الاتفاقية إلى طرفيها بصفتهما الشخصية. مخالفة الحكم بذلك. بعيبه ويُوجب تمييزه.
Original Arabic judgment citations

(الطعن ٦٧٩/٢٠٠٢ تجاري جلسة ١٧/١٢/٢٠٠٣ مج القسم الخامس - المجلد الثالث ص ٦٢٩)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 104. PDF pages: 104.

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