Latest news with #CivilandCommercialProceduresLaw
Arab Times
12 hours ago
- Business
- Arab Times
New Decree Raises Kuwait District Court Limit to 2,000 Dinars
KUWAIT CITY, June 8: The government of Kuwait has issued Decree-Law No. 71 of 2025, introducing significant amendments to the Civil and Commercial Procedures Law, notably raising the jurisdictional threshold for district courts from KD 1,000 to KD 2,000. The reform aims to streamline judicial processes and ease the burden on the court system by allowing simpler cases to proceed more efficiently. According to the explanatory note accompanying the decree, lawsuits involving claims of KD 2,000 or less have constituted an average of 75 percent of total cases handled by district courts over the past five years. In response, the Ministry of Justice has opted to ease litigation procedures for smaller claims while ensuring that key legal safeguards remain intact. Key Provisions and Article Amendments The amendment affects Article 29 of the Civil and Commercial Procedures Law by replacing the term 'one thousand dinars' with 'two thousand dinars,' effectively redefining the final quorum for district court jurisdiction. Additionally, Articles 166, 167 (paragraphs one to three), 169, and 170 of the law have been comprehensively revised. Among the key changes: - Article 166 allows creditors to pursue monetary claims through simplified procedures—either in person or electronically—if the debt is confirmed in writing and due. The scope includes commercial paper-related debts but excludes non-cash claims and vague property claims to reduce procedural complexity. - Article 167 stipulates that creditors must issue a formal payment notice to debtors at least 10 days in advance. This notice may be delivered via registered mail or any secure electronic communication method approved by the Minister of Justice. The order for payment must follow strict documentation requirements and be issued within three days. - Article 169 modernizes notification procedures, enabling delivery of court orders and petitions through email or other retrievable digital means. It also mandates that failure to notify within six months nullifies the order. - Article 170 sets a 10-day appeal window for defendants after receiving a payment order. The appeal must be justified and filed before the appropriate court. Notably, while the performance order itself is not appealable, any judgment issued following a grievance is subject to appeal under the standard two-tier judicial review system. Technological and Procedural Updates The revised law reflects Kuwait's broader push to modernize its judiciary by embracing digital transformation. It explicitly allows for the use of electronic filing, notification, and documentation—provided they meet requirements for security, permanence, and retrievability as determined by the Ministry of Justice. The changes also clarify legal ambiguities, such as the treatment of bank claims upon account closure under Article 400 of the Commercial Code, and refine grievance procedures to strike a balance between procedural efficiency and the right to fair adjudication. Implementation and Enforcement Under Article 2 of the decree-law, the Prime Minister and all relevant ministers are tasked with executing the new legal provisions. The decree comes into force immediately upon its publication in the Official Gazette. This latest legal overhaul marks a crucial step in Kuwait's ongoing efforts to reform and modernize its civil litigation framework, ensuring quicker resolution of small-scale disputes while alleviating pressure on the judiciary.
Arab Times
12 hours ago
- Business
- Arab Times
Kuwait's New Law Sets Deadline, Penalties for Unpaid Service Fees
KUWAIT CITY, June 8: In a move aimed at tightening fiscal discipline and ensuring the effective recovery of dues, the Kuwaiti government has issued Decree-Law No. 75 of 2025 concerning the collection of fees and financial costs for the use of public facilities and services. The law introduces a framework to govern the financial relationship between ministries, public institutions, and beneficiaries of state-provided services, reinforcing the principle that public utilities—ranging from electricity and water to telecommunications and transport—are not free but must be paid for under regulatory and administrative mandates. Core Provisions and Mechanisms Automatic Service Suspension and Installment Flexibility Under Article 1, if a debtor (whether an individual or a private legal entity) fails to pay dues within 30 days of notification, the concerned ministry or public body may temporarily suspend services. This suspension is lifted automatically through the government's digital systems once the outstanding amounts are paid. The law allows for installment-based repayments for those financially unable to settle the dues in one go, pending approval from the creditor. However, failure to adhere to the installment plan leads to its cancellation and the immediate initiation of debt recovery procedures. Mandatory Grievance Process Before Legal Action To prevent unnecessary litigation, Article 2 mandates that any individual disputing the suspension of services or the calculation of dues must first file a written grievance with the concerned authority. A response must be issued within 30 days. If no response is given, it is considered a rejection. Only after this process can a lawsuit be filed—within 30 days of either the rejection notice or the lapse of the response period, whichever comes first. Priority Lien on Debtor's Assets In a bold move to secure state revenues, Article 3 grants government creditors a statutory lien over all assets—movable and immovable—owned by the debtor. This gives the state legal priority in recovering its dues ahead of other creditors. Immediate Enforcement of Debt Recovery Article 4 elevates any official debt document or collection decision issued by a government entity to the status of an 'executive instrument.' This means the state can enforce collection directly without the need to go through lengthy court proceedings, following the procedures of Kuwait's Civil and Commercial Procedures Law. Ten-Year Statute of Limitations with Interruptions Article 5 introduces a 10-year statute of limitations for fee collection, starting from the due date or the end of the relevant fiscal year for annual fees. Crucially, this limitation can be interrupted by any official notice from the creditor that includes the outstanding amount and a request for payment, effectively restarting the clock on the limitation period. Judicial Fees Exempted Article 6 clearly states that the new law does not apply to judicial fees, which remain governed by Kuwait's Judicial Fees Law No. 17 of 1973. Rationale Behind the Legislation The explanatory note accompanying the law clarifies that the government's decision stems from widespread abuse of the existing system. Many beneficiaries of public services—including water, electricity, communications, and municipal services—have delayed or avoided payments, thereby burdening the state financially. This law is not meant to serve merely as a budgetary resource measure, but as a strategic tool for ensuring the efficient management of public utilities and discouraging negligence by debtors. It aims to restore the financial discipline required for a sustainable public service framework. Moreover, the government recognizes that some debts have accumulated to levels beyond immediate payment. By permitting structured payment plans, the law seeks to offer a balanced approach—enforcing payment obligations while recognizing genuine financial hardship. Implementation Timeline Article 7 mandates that ministers shall enforce the law within their jurisdictions, and it will come into effect three months from the date of its publication in the Official Gazette. Decree-Law No. 75 of 2025 marks a pivotal shift in Kuwait's approach to public service fee collection. By combining legal enforcement with digital automation, flexible repayment options, and judicial safeguards, the law positions the state to better protect public funds while promoting accountability among service users. It's a clear message that the era of unchecked fee evasion is coming to an end.
Arab Times
08-05-2025
- Business
- Arab Times
Kuwait moves to fast-track minor lawsuits
KUWAIT CITY, May 8: In a move aimed at modernizing long-standing legal procedures and dealing with the growing number of minor civil claims, the Council of Ministers recently approved a draft decree-law for amending certain provisions of Decree-Law No. 46/1989 concerning low-value lawsuits. The explanatory memorandum for the draft decree-law confirmed that 35 years have passed since the law's initial implementation. At the time, the law included sufficient rules and provisions aimed at simplifying litigation procedures. According to judicial statistics, lawsuits valued at less than KD 2,000 accounted for 75 percent of all cases heard by the courts over the past five years. In light of this, and considering that some provisions of Decree-Law No. 46/1989, specifically Articles 1, 2, and 9, have already been amended, this new draft decree-law was prepared. Article 1 of the draft decree proposes expanding the scope of application of the original law by replacing the phrase 'KD 2,000' with 'KD 1,000' in Article 1 of Decree-Law No. 46/1989. Article 1 of the draft decree stipulated the replacement of Article 2, requiring the court clerk to notify the defendant of the date of the first hearing. This notification may be delivered in person, via email, or through any modern electronic means of communication that allows for storage and retrieval, as determined by a decision of the Minister of Justice. The same article also replaces the text of Article 9. The revised first paragraph now stipulates that low-value lawsuits shall be resolved through a summary judicial ruling. This ruling must include a summary of the case proceedings, the claims made, and the sequence of hearings, while also clearly stating the legal and factual grounds for the ruling. The paragraph concludes by affirming the application of general legal principles, under which judgments in low-value lawsuits are deemed enforceable by nature, as they are final and not subject to appeal, in accordance with Article 192 of the Civil and Commercial Procedures Law. The second paragraph of the amended article introduces a new provision that simplifies the conditions specified in the Civil and Commercial Procedures Law, specifically Article 115. Under that article, a court judgment is not required to include reasoning if three conditions are met: the ruling is issued by the Court of First instance, it grants all of the plaintiff's claims, and the defendant, though properly notified, neither appears nor submits a defense memorandum. Given that these conditions may also apply to low-value lawsuits, and to prevent any potential legal ambiguity, the same principle was incorporated into the second paragraph of Article 9. However, the conditions were eased to reflect the nature of such cases. The paragraph clarifies that providing reasons for the ruling is unnecessary when the case involves no dispute between the parties and it is evident that the plaintiff is entitled to all requested relief.
Zawya
24-04-2025
- Business
- Zawya
Kuwait: Banks cannot deduct full salaries of debtors
KUWAIT CITY - The Head of the General Administration of Execution, Counselor Abdullah Al-Othman, has affirmed that banks are not permitted to recover debts from the debtor's entire salary. In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department. Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.' He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
Arab Times
23-04-2025
- Business
- Arab Times
Banks cannot Deduct Full Salaries of Debtors
KUWAIT CITY, April 23: The Head of the General Administration of Execution, Counselor Abdullah Al-Othman, has affirmed that banks are not permitted to recover debts from the debtor's entire salary. In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department. Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.' He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
