A company made a request to the committee of judicial arbitration to order Kuwait City council to pay compensation of 2000000 Dinars. The company said that the council had granted it a land in order to build a hospital and that it conducted an engineering study in order to start the project. The company said that the council then cancelled the licence and caused damage to them.

The committee said that the consideration of the request did not fall under its jurisdiction.

The company appealed the ruling before the court of cassation. The company said in its grounds of appeal that the appealed ruling had erred in the application of law. The company said that the committee had established its ruling on the grounds that the contract the company signed was an administrative one and therefore it should be considered by the administrative court. The company said that Article 2 of Kuwait Law No. 11/1995 stipulated that the committee was responsible for considering the administrative disputes.