Adjudication of Islamic banking and finance cases in the civil courts of Malaysia

The Litigation Process in Handling Murabahah Cases: A Comparative Study between Malaysia and Indonesia

“…Furthermore, both Malaysian and Indonesian judges applied a justice and equity approach in making court decisions. Judges have the power to set aside a contract which is grossly unfair to one of the contracting parties (Markom et al, 2013 Although it is the duty of the court to seek expert opinion on Shariah matters, the judge has the power to decide whether it is necessary to do so. In these three cases, the question before the court was the application of the terms of the contractual documents and not a question of Shariah law.…”

“…In these three cases, the question before the court was the application of the terms of the contractual documents and not a question of Shariah law. The issue of the validity of Islamic facilities was neither raised nor argued by the counsels acting for the parties (Markom et al, 2013 Another main difference between these two countries is the legal system; while the law of Malaysia is mainly based on the common law legal system, the law of Indonesia is based on a civil law system, intermixed with customary law and Roman Dutch law. In Malaysia, the judges are bound to follow the judgements of previous cases according to procedural law.…”

Kedudukan Janji Dalam Undang-Undang Islam Dan Akta Kontrak 1950

“…Berdasarkan kepada Perlembagaan Persekutuan dalam Jadual Sembilan senarai I Kerajaan Persekutuan memperuntukkan hanya Mahkamah sivil sahaja yang mempunyai bidang kuasa untuk memutuskan kes-kes mengenai kontrak dan perniagaan (Ahmad Ibrahim, 2000: 5). Manakala bidang kuasa Mahkamah Syariah terhad dan terpakai kepada orang Islam sahaja (Ruzian Markom et al, 2013: 3) sebagaimana yang disebut dalam Butiran II Senarai Negeri Perlembagaan Persekutuan (PP) iaitu meliputi perkara yang berkaitan dengan undang-undang diri orang Islam seperti perkahwinan, perceraian, penjagaan anak, nafkah, pengambilan anak angkat, taraf anak, undang-undang keluarga, pemberian atau pewarisan harta berwasiat dan tidak berwasiat (Perkara 4(e)(ii) Butiran I, Senarai Persekutuan Jadual Kesembilan, Perlembagaan Persekutuan). Dass, 2005: 31 ), cadangan boleh dibuat secara bersyarat dan tidak bersyarat (Eckhardt Marine GMBH v. Sheriff, High Court of Malaya, Seremban & Ors, [2001] 4 MLJ 54), dan cadangan tersebut perlu dikomunikasikan (Seksyen 4(1) AK 1950).…”

Customers' perceptions on the dispute resolution clauses in Islamic finance contracts in Malaysia

“…While the suggestions she proffered sound interesting from the global perspective of Islamic finance and the English courts, the Malaysian experience seems to be different. This is reflected in Markom et al (2013) where the dynamics and trends of adjudication of Islamic finance disputes in the civil courts of Malaysia are closely discussed. While utilizing the legal content analysis method of Islamic finance cases decided between 1986 and 2009, the study finds that the the existing legal framework for dispute resolution in the Islamic finance industry in Malaysia is inadequate.…”