Islamic Banking

4 cases · March 2025 to January 2026

Case Volume by Year

3
25
1
26
2025–2026

Key Issues & Sub-Topics

Qardhul Hasan — Benevolent loan — Enforcement after default — Interaction between Shariah-based facility and civil procedural requirements 1 Whether Al-Mudharabah Investment Certificates prima facie evidence of sums held by the bank — Burden of proof — Presumption of payment after considerable lapse of time — 22-year delay — Certificate possession not conclusive — Direct witness testimony — Banking records and system migration — Automatic renewal limited to 5 years — Unclaimed Monies Act 1965 — Bankruptcy proceedings non-declaration of investment/Certificates — High net-worth client privileges — Telephone withdrawals — Limitation Act 1950 Section 6(1)(a) — Doctrine of laches — Cause of action accrues on maturity — Credible direct evidence preferred 1 Bank & banking business — Summary judgment — Default in repayment of banking facility based on Bai’ Bithaman Ajil (BBA) concept — Whether plaintiff was entitled to terminate and recall facility — Joint and several guarantee — Whether the banking facility and guarantee bind the defendants — Whether the Plaintiff is entitled to initiate concurrent action — Certificate of Indebtedness — Conclusive Evidence Clause — Whether defendants have shown evidence of manifest error — Plaintiff failed to prove posting of letters of demand and termination — Whether the claim is premature — Whether defendants successfully raised triable issues — Doubt as to bona fides of defence — Conditional leave to defend — Whether defendant ought to be given conditional leave to defend — Whether the condition imposed is reasonable — Rules of Court 2012, Order 14 rr 1, 3, & 4 1 Bank & banking business — Summary judgment — Default in repayment of banking facility — Whether agreement complies with the Shariah concept of Al-Bai Bithaman Ajil, Al-Ijarah, and Commodity Murabahah — Whether the facilities agreement in breach of Shariah principles and Shariah Advisory Council’s rulings — Whether facilities agreement deemed void ab initio — Whether the banking facilities and guarantees bind the defendants — Whether the claim is premature — Certificate of Indebtedness — Conclusive Evidence Clause — Whether defendants have shown evidence of manifest error — Whether certificate of indebtedness tained by ta’addi (misconduct), taqsir (negligence) or mukhalafah as-shurul (breach of specified terms) — Whether defendants successfully raised triable issues — Joint and several guarantee — Rules of Court 2012, Order 14 rr 1, 3 — Islamic Financial Services Act 2013, s.28 & s.281 — Federal Constitution, Item 7(j) of the Federal List (List I of the 9th Schedule). 1

Qardhul Hasan — Benevolent loan — Enforcement after default — Interaction between Shariah-based facility and civil procedural requirements 1 case

Whether Al-Mudharabah Investment Certificates prima facie evidence of sums held by the bank — Burden of proof — Presumption of payment after considerable lapse of time — 22-year delay — Certificate possession not conclusive — Direct witness testimony — Banking records and system migration — Automatic renewal limited to 5 years — Unclaimed Monies Act 1965 — Bankruptcy proceedings non-declaration of investment/Certificates — High net-worth client privileges — Telephone withdrawals — Limitation Act 1950 Section 6(1)(a) — Doctrine of laches — Cause of action accrues on maturity — Credible direct evidence preferred 1 case

Bank & banking business — Summary judgment — Default in repayment of banking facility based on Bai’ Bithaman Ajil (BBA) concept — Whether plaintiff was entitled to terminate and recall facility — Joint and several guarantee — Whether the banking facility and guarantee bind the defendants — Whether the Plaintiff is entitled to initiate concurrent action — Certificate of Indebtedness — Conclusive Evidence Clause — Whether defendants have shown evidence of manifest error — Plaintiff failed to prove posting of letters of demand and termination — Whether the claim is premature — Whether defendants successfully raised triable issues — Doubt as to bona fides of defence — Conditional leave to defend — Whether defendant ought to be given conditional leave to defend — Whether the condition imposed is reasonable — Rules of Court 2012, Order 14 rr 1, 3, & 4 1 case

Bank & banking business — Summary judgment — Default in repayment of banking facility — Whether agreement complies with the Shariah concept of Al-Bai Bithaman Ajil, Al-Ijarah, and Commodity Murabahah — Whether the facilities agreement in breach of Shariah principles and Shariah Advisory Council’s rulings — Whether facilities agreement deemed void ab initio — Whether the banking facilities and guarantees bind the defendants — Whether the claim is premature — Certificate of Indebtedness — Conclusive Evidence Clause — Whether defendants have shown evidence of manifest error — Whether certificate of indebtedness tained by ta’addi (misconduct), taqsir (negligence) or mukhalafah as-shurul (breach of specified terms) — Whether defendants successfully raised triable issues — Joint and several guarantee — Rules of Court 2012, Order 14 rr 1, 3 — Islamic Financial Services Act 2013, s.28 & s.281 — Federal Constitution, Item 7(j) of the Federal List (List I of the 9th Schedule). 1 case

Court Distribution

Key People & Firms

Cases