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

Ruzian Markom (), Sharina Pitchay (), Zinatul Zainol (), Anita Rahim () and Rooshida Merican ()

European Journal of Law and Economics, 2013, vol. 36, issue 1, 34 pages

Abstract: The adjudication of Islamic banking and finance (IBF) laws in Malaysia is unique given the Malaysian parallel legal systems. Although IBF is a branch of Islamic law, the civil court has the appropriate jurisdiction to decide the cases. This is due to the fact that banking falls under the items 7 and 8 of the Federal List of the Federal Constitution. The trails of decided cases showed that there are problems in resolving IBF cases in the civil courts. This paper aims to discuss the adjudication of Islamic Banking in the civil courts. The authors employed the method of legal documents analysis in analyzing the IBF cases. The analysis highlighted four obstacles in adjudicating IBF in civil courts, namely; inadequacy of existing legal framework, complications of legal documentation, competency of civil court judges and expert evidence. It also analysed the four approaches adopted by the civil courts in deciding IBF cases; the ‘parties to be bound by their agreement’, the ‘strict adherence to civil law’, the ‘justice and equitable’ and the ‘looking into the substance’. Copyright Springer Science+Business Media, LLC 2013

Keywords: Adjudication; Islamic banking and finance; Civil courts; Cases; Legal obstacles; Courts approaches; G21; G28; K12; K42 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10657-011-9249-4

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