Ahmad Farid & Associates

On the court record

The firm's record illustrates the Shariah mechanics of ibra' in Islamic banking recovery and the reference jurisdiction of the Shariah Advisory Council under the Central Bank of Malaysia Act 2009, alongside the reserve-price and res judicata issues in a foreclosure order for sale.

Ahmad Farid & Associates appears in the corpus as counsel in Islamic banking and land-foreclosure litigation, argued in the High Court (Mahkamah Tinggi), with a recurring focus on the recovery of Islamic financing.

A notable matter concerns the mechanics of Islamic banking recovery. Acting for the defendant in litigation involving Bank Islam Malaysia Berhad, the firm appeared where a Tawarruq financing facility was enforced by a notice of demand, and the court examined an alleged defect in Form 16D under the National Land Code for failing to ascertain and crystallise the exact quantum of ibra' (rebate), whether ibra' can be calculated and locked in at the pleading or demand stage, and paragraph 7.4 of the Bank Negara Malaysia guidelines on ibra'. The matter also raised whether it is mandatory to refer every contractual dispute, or a bare denial disguised as a Shariah issue, to the Shariah Advisory Council under section 56 of the Central Bank of Malaysia Act 2009.

In related foreclosure work the firm again acted for the defendant in an application to fix the reserve price on an order for sale under section 257 of the National Land Code, where conflicting valuation reports, prepared for financing and for auction purposes, were in issue, together with the statutory reduction of the reserve price under section 259(2)(c) and whether a defendant who had failed to object to a previous reserve price was estopped or precluded by constructive res judicata from reopening the validity of Form 16D and the Shariah compliance of the debt at the execution stage.

The firm also appeared in civil-procedure work concerning an extension of time and the assessment of damages. The firm's record is a specialised Islamic-banking and foreclosure practice, engaging both the Shariah mechanics of ibra' and the land-law machinery of an order for sale. The recurrence of the same lender and borrower across the demand, order-for-sale and reserve-price stages illustrates how an Islamic-financing default is litigated through successive procedural gateways, at each of which the borrower seeks to reopen the validity of the debt and the bank invokes res judicata to hold the borrower to points that ought to have been raised earlier, a sequence that has become characteristic of contested Islamic-banking recovery.