Latest news with #CivilandCommercialProceduresLaw
Arab Times
a day ago
- 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
3 days ago
- 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.
Arab Times
08-06-2025
- 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.
