BANK ISLAM MALAYSIA BERHAD

On the court record

Illustrates how the courts apply the foreclosure, summary-judgment, winding-up and bankruptcy regimes to the enforcement of tawarruq financing, and how ibra' and the order-for-sale machinery shape the recovery of a Shariah-compliant debt.

Bank Islam Malaysia Berhad appears in this corpus as a pioneering Islamic bank, in roles including plaintiff, applicant, petitioner, judgment creditor and defendant, with matters decided in the High Court. The decisions concentrate on the enforcement of Shariah-compliant financing and its security. A recurring subject is financing structured on tawarruq principles, where a notice of demand is issued on default and the application of ibra' (a rebate on early or full settlement) bears on the sum recoverable, and an alleged default is contested. Land-security enforcement features through foreclosure and an order for sale of charged land, including an application to fix the reserve price and an appeal against the senior assistant registrar's decision. The bank also pursues summary judgment against guarantors under the Rules of Court 2012 where a borrower has defaulted, and it invokes the insolvency regimes — a creditor's winding-up petition under section 465(1)(e) of the Companies Act 2016 and bankruptcy proceedings engaging automatic discharge under section 33C(4) of the Insolvency Act 1967. The corpus also includes committal proceedings under Order 52 of the Rules of Court 2012 connected with the lodgement of caveats. Because Bank Islam appears predominantly as the party enforcing its financing and security, the decisions reflect the successive stages by which an Islamic financier realises its security and pursues debtors and guarantors. The matters are decided in the High Court. Collectively the decisions in which Bank Islam is a party illustrate how the courts apply the foreclosure, summary-judgment, winding-up and bankruptcy regimes to the enforcement of tawarruq financing, and how ibra' and the order-for-sale machinery shape the recovery of a Shariah-compliant debt. Several of the reported matters also concern the requirements a valid notice of demand and a winding-up petition must satisfy and the conditions on which committal will be ordered for a breach of an undertaking or order connected with caveats. Across these decisions the bank appears in the several capacities an Islamic financier occupies as it realises its security and pursues debtors and guarantors through the successive stages the process requires.