A nine-member Federal Court bench convened to determine the constitutionality of a Shariah Advisory Council’s (SAC) ruling. The ruling purportedly binds the High Court in a commercial dispute, according to the New Strait Times.
The panel met yesterday with regard to the matter between Kuwait Finance House (KFH) and JRI Resources (JRI) with its three guarantors.
The proceedings involved the constitutionality of Section 56, 57, and 58 of the Central Bank of Malaysia Act 2009 which states that the ruling by SAC binds the Civil High Court in Sharia matters.
JRI counsel argued that sections 56 and 57 of the Central Bank of Malaysia Act 2009 usurp judicial function and power.
However, KFH’s counsel stated that the role of SAC was only to determine whether the business was Sharia compliant. KFH alleges that JRI failed to make payments to KFH under Islamic banking facilities.
The ruling will be announced at a later date.