The Litigation Process in Handling Murabahah Cases: A Comparative Study between Malaysia and Indonesia
The Litigation Process in Handling Murabahah Cases: A Comparative Study between Malaysia and Indonesia
Author(s): Atharyanshah Puneri, Ilhamiddin Ikramovich Nazarov, Moustapha Chora Ahmat, Muhamad Ikhwan ArifSubject(s): Law, Constitution, Jurisprudence, Islam studies, Financial Markets
Published by: New Millennium Discoveries Ltd
Keywords: Murabahah; Civil Court; Religious Court; Malaysia; Indonesia; Legal System; Islamic Banking Dispute;
Summary/Abstract: In conventional banking, the validity of a contract is recognised through case law and the legal system of the country. Islamic banking contracts follow the same laws in addition to Shariah principles, which sometimes create legal uncertainty. Murabahah is an Islamic financial instrument which allows a buyer to purchase goods from a seller at a specified profit margin. In contemporary banking practice, Murabahah has been widely used by Islamic financial institutions as a financing contract. It is therefore important to scrutinise the legality and validity of Murabahah practised by Islamic financial institutions in contemporary settings because the existing substantive law on contracts and commerce may not fit well with the Shariah principles. This paper selected three Murabahah cases in Malaysia and Indonesia between 2013 and 2016 as points of comparison. Future research could compare and contrast legal cases over a wider time span
Journal: International Journal of Management and Applied Research
- Issue Year: 6/2019
- Issue No: 4
- Page Range: 308-317
- Page Count: 10
- Language: English