KD 2m debt acknowledgements declared null and void

Kuwait's Court of Appeals has affirmed a lower court's decision to declare two debt acknowledgments, valued at a combined KD2 million, as null and void. The core of the ruling rests on a significant lack of evidence to substantiate the alleged debts.

The case was brought forth by attorney Ismail Dashti on behalf of his client. Dashti filed a lawsuit requesting a stay of execution for one of the debt acknowledgments held by the Judgments Enforcement Department. He argued that his client should be absolved of the KD2 million debt because the acknowledgments were issued without any corresponding financial transaction having taken place.

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The acknowledgments were issued without an actual financial transaction.

Dashti emphasized that his client never received the amounts specified in the debt acknowledgments. Furthermore, he pointed out the absence of any proof demonstrating the transfer of funds to his client's account. The attorney also highlighted the lack of evidence regarding the plaintiff's financial capacity to provide such sums or the origin of those funds.

The lower court had previously ruled the two notarized debt acknowledgments invalid. This decision was based on the absence of debt evidence and the illogical nature of the proposed payment method, factors that ultimately led to the appellate court's upholding of the ruling.

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There is no evidence proving the transfer of the money to the account of the latter.