Latest news with #CivilandCommercialProceduresLaw
Arab Times
6 days ago
- Business
- Arab Times
Kuwait moves to standardize salary deductions by court orders
KUWAIT CITY, Aug 7: In a recent brainstorming session aimed at resolving procedural challenges, the Enforcement Department at the Ministry of Justice met with banking officials to discuss the difficulties banks face in implementing judicial orders related to the garnishment of employee salaries and wages. Sources familiar with the matter said that representatives from various banks presented the specific issues they encounter when executing salary withholdings ordered by the courts. The meeting sought to gather feedback from financial institutions in order to develop a unified banking mechanism that would standardize salary garnishment procedures across all banks in Kuwait. Although garnishment orders issued by the Enforcement Department typically state the required percentage to be deducted — within the legally permissible range — sources noted that procedural complications still arise. These inconsistencies often prevent banks from handling similar cases in the same manner, creating operational challenges. One of the key issues discussed was whether the garnishment should occur before or after the deduction of existing bank loan installments. Questions were also raised about how to treat additional salary components such as labor support, rent allowances, social assistance, and Kuwait Credit Bank loan repayments. In some cases, banks have withheld the entire salary amount to comply with the garnishment, only to later release exempted portions after the customer intervenes. The discussions underscored the importance of adhering to Article 216 of the Civil and Commercial Procedures Law, which states that garnishments must fall within the legal limits—between 25% and 50% of the employee's permanent salary, depending on the nature of the debt and the debtor's employment status. This is to ensure that the employee retains a portion of their income and to prevent over-withholding. It was also emphasized that court-ordered alimony takes precedence over all other forms of debt, including government-related obligations. In the event of a conflict between alimony and government debt, alimony is to be prioritized. Only after satisfying both obligations, and if a remaining margin exists, may further deductions be made up to the legal ceiling of 50%. Sources added that during the session, bank representatives also highlighted several technical challenges and called for clearer guidelines and improved coordination. Work is ongoing to address these concerns and remove ambiguity, with the goal of creating a streamlined, consistent process for handling court-mandated wage garnishments across all financial institutions. Another proposal raised during the meeting involves shifting the garnishment responsibility from banks to the employer, the salary source. Under this system, court orders would be sent directly to the employer, who would withhold the required percentage before transferring the remaining salary to the employee's bank account. However, sources confirmed that no final decision has been reached on this proposal. Salary garnishments, enforced via court order, are intended to protect creditor rights and ensure the repayment of outstanding debts. As such, participants in the session agreed on the necessity of uniform implementation without delays or procedural discrepancies.
Arab Times
01-07-2025
- Politics
- Arab Times
Refusing To Implement Court Rulings in Kuwait? Now Penalties Increased
KUWAIT CITY, July 1: The Council of Ministers has approved a draft decree-law amending Article 58 bis of Law No. 31 of 1970, which governs penalties for public employees who deliberately refuse to implement enforceable judicial rulings. The proposed amendment aims to enhance the legal framework by increasing penalties and extending the timeframe for compliance, thereby reinforcing respect for the judiciary and safeguarding the rule of law. Under the new provisions, any competent public employee who intentionally fails to implement a judicial ruling within 90 days of official notification—via regular means or modern electronic communication—will face imprisonment for up to two years and a fine ranging from KD 3,000 to KD 20,000, or one of these penalties. This represents a significant increase from previous fines, which were deemed insufficient to deter violations. If the employee abuses their official authority to obstruct execution of the ruling, the penalty increases to imprisonment for up to one year and a fine between KD 2,000 and KD 10,000, or one of these penalties. Courts are also granted discretionary power to order the dismissal of employees convicted under these provisions, allowing judges to tailor punishments to individual circumstances. The draft clarifies that the Public Prosecution will have exclusive jurisdiction to investigate and prosecute such offenses, with criminal proceedings ending if the employee complies with the ruling at any stage. This measure is intended to encourage timely enforcement and uphold judicial finality. The amendment follows observations that the prior 30-day compliance window was often insufficient for administrative procedures, prompting the extension to 90 days to provide a more realistic timeframe. Notifications may be delivered through traditional or electronic means consistent with the Civil and Commercial Procedures Law. The explanatory memorandum underscores the importance of enforcing judicial rulings as fundamental to justice and the constitutional principle of separation of powers, as outlined in Article 50 of Kuwait's Constitution. It further notes that the amendment aligns with Amiri Order No. 4 of 2024, which mandates laws be enacted through decree-laws. Article 2 of the draft stipulates that the Prime Minister and relevant ministers are responsible for implementing and publishing the decree in the Official Gazette, making it effective immediately upon publication.
Arab Times
29-06-2025
- Business
- Arab Times
Debtor accounts to be frozen on court order
KUWAIT CITY, June 29: Kuwait Banking Association (KBA) has stated that, in compliance with Law No. 59/2025 for amending certain provisions of the Civil and Commercial Procedures Law, all Kuwaiti banks are committed to strictly abiding by the law's provisions, particularly regarding the seizure of debtors' balances, to ensure full compliance, and to protect the rights of all parties involved. In a press release, KBA explained that banks receive executive seizure reports on debtors' funds electronically from the Judicial Execution Directorate via its official email. Upon receiving a seizure report, banks freeze the relevant accounts until they receive a lifting report from the Judicial Execution Directorate, based on the specified percentages and instructions. Kuwaiti banks are taking all necessary measures to ensure the proper implementation of the law. Furthermore, KBA affirmed that member banks are fully prepared to receive complaints and suggestions through their official channels and to address them diligently.
Arab Times
10-06-2025
- Business
- Arab Times
Fee defaulters in Kuwait face automatic service suspension
KUWAIT CITY, June 10: The official gazette Kuwait Al-Youm, in its latest issue, published Decree-Law No. 75/2025 concerning the collection of fees for the use of public utilities and services, reports Al-Seyassah daily. Article 1 stipulates that government agencies acting as creditors must temporarily suspend services to debtors who fail to pay within thirty days of receiving a notification. The suspension will be automatically lifted in the agency's automated system once the debtor settles the full outstanding amount. The final paragraph of Article 1 allows the creditor, upon the request of the debtor or their legal representative, to approve installment payments for those unable to pay the full amount at once. This is subject to terms and conditions determined by a decision issued by the representative of the creditor agency. The suspension of services shall be lifted by a decision of the creditor committee if it approves the debtor's request to pay in installments. However, if the debtor fails to pay any installment on its due date, the creditor shall issue a decision to revoke the installment decision and initiate enforcement proceedings to collect the debt or any remaining balance. Article 2 of the decree stipulates that a lawsuit filed by the debtor concerning the temporary suspension of public services, or any dispute regarding the debt amount, shall not be accepted unless the debtor first files a formal complaint with the relevant ministry. The relevant ministry or committee must issue a decision on the complaint within thirty days of its submission. If this period expires without a decision, the complaint is considered rejected. The debtor may then file a lawsuit within thirty days, either from the date they are notified of the complaint rejection through modern electronic means or from the expiry of the decision period, whichever comes first. Article 3 of the draft law stipulates that any amounts owed to state ministries or institutions under the provisions of this law shall take precedence over all of the debtor's assets, whether movable or immovable. Article 4 states that any document indicating the debt owed by the debtor, or any decision to collect or settle the debt issued by the competent authority or ministry, shall be deemed an 'executive instrument' enforceable by law. Its execution shall be carried out under the rules and provisions stipulated in the Civil and Commercial Procedures Law, issued by Decree-Law No. 38/1980.
Arab Times
08-06-2025
- 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.
