News and Articles
Monday, 21 October 2019 15:02
The High Court orders to declare the bankruptcy of a Kuwaiti Company for abstaining to pay due debts.
The High Court – Commercial department - ordered to declare the bankruptcy of a Kuwaiti company and to seal its funds, stores, and to publicize the rule in the real-estate register for abstaining from paying its debts, while the sentence includes the accelerated enforcement without bail. (Content highlighted in Red needs to be ascertained from the actual Arabic transcript).
The owner of an institution obtained a judgment obliging a Kuwaiti company to pay money for goods he had supplied to the said company, which the company refrained from paying. Based on the judgment the plaintiff initiated all the executive procedures against it, inspite of which the latter declined to pay the outstanding dues. In the meantime, the creditor company approached Lawyers Abdulaziz and Khalid Taher Alkhateeb of Taher Group Law Firm, where Lawyer Fawaz Khalid Alkhateeb attended the lawsuit in representation of the creditor company and requested the court to declare the company as bankrupt due to the actual financial situation of the company as it was not able to settle its debts, which was carefully considered by the court after examining the documents and issued a judgment accordingly. Lawyer Fawaz Alkhateeb reassured that the fact that most traders avoiding paying their debts despite of all the implementation procedures has become a common practice, however the law always determines the fate of the actual troubled companies and traders who fail to pay their debts when their current legal conditions are determined. Lawyer Fawaz went on to thank the court for its fair judgment which will preserve the rights of all the actual aggrieved as well as prevent other troubled companies who evade paying their debts.