BANK ISLAM MALAYSIA BERHAD v QUANTUM MAJESTY SDN. BHD.

ka-24mfc-13-04-2022 High Court (Mahkamah Tinggi) 10 March 2026 • KA-24MFC-13-04/2022 • 32 min read
16 cases cited (0 SG, 16 foreign)

Catchwords

ISLAMIC BANKING: Financing facility — Tawarruq — Notice of demand — Ibra' (rebate) — Alleged defect in Form 16D for failing to ascertain and crystallise the exact quantum of ibra' — Whether ibra' can be calculated and locked in at the pleading or demand stage — Mechanics of Islamic banking recovery. Paragraph 7.4 of the Bank Negara Malaysia Guidelines on Ibra'. Reference to the Shariah Advisory Council (SAC) under section 56 of the Central Bank of Malaysia Act 2009. Whether it is mandatory to refer every contractual dispute or bare denial disguised as a Shariah issue to the SAC. LAND LAW: Charge — Order for Sale — Third-party chargor — Default by principal borrower — Statutory notice of demand under Form 16D of the National Land Code 1965. Successive applications to set aside Order for Sale — Foreclosure proceedings as actions in rem against the Charged Property — Distinction between in rem foreclosure proceedings and in personam civil recovery actions. Whether an ongoing civil review application by the principal borrower at the Federal Court constitutes "cause to the contrary" to defeat a chargee's statutory right to an Order for Sale. CIVIL PROCEDURE: Res judicata — Issue estoppel — Wider doctrine of res judicata — Abuse of process of the Court. Successive applications to set aside the same Order for Sale — Prohibition against litigating by instalments and revealing causes of action on a staggered basis. Public policy and finality in litigation — Interest rei publicae ut sit finis litium. Locus standi — Privity of contract — Whether a third-party chargor has the right to challenge a Rescheduling Agreement entered into exclusively between the financial institution and the principal borrower.

Practice Areas

Islamic Banking & Finance Land Law Civil Procedure

Judges (1)

John Lee Kien How @ Mohammad Johan Lee Delivered

Counsel (7)

Ahmad Farid & Associates Firm Sidek Teoh Wong & Dennis Firm Ahmad Farid Counsel Defendant Farah Sakinah Binti Paridul Adras Counsel Plaintiff Ghazali Chia Counsel Defendant Kamal Hisham Counsel Defendant Nur Aini Binti Yaakob Counsel Plaintiff

Parties (2)

BANK ISLAM MALAYSIA BERHAD Applicant QUANTUM MAJESTY Sdn Bhd Respondent

Statutes Cited

National Land Code (Cap 828)
Rules of Court 2012

Cases Cited (16)

MY (16)
[1994] 1 MLJ 119 [1995] 1 MLJ 281 [1995] 3 CLJ 783 [1997] 2 CLJ 36 [1999] 5 CLJ 529 [2001] 2 CLJ 321 [2011] 1 MLJ 478 [2014] 11 MLJ 793 [2015] 7 MLJ 134 [2019] 5 CLJ 569 [2020] MLJU 543 [2020] MLJU 961 [2021] 3 CLJ 34 [2023] 3 MLJ 393 [2023] 5 CLJ 20 [2023] 5 MLJ 106

Judgment

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Read on eJudgment

Source: eJudgment (ka-24mfc-13-04-2022)