New Decree Raises Kuwait District Court Limit to 2,000 Dinars

08/06/2025

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.