Dispute Resolution in the Islamic Finance Industry in Malaysia: Some Legal Conundrums.
Loading...
Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The main purpose of this paper is to explore the state of dispute
resolution in the Islamic finance industry in Malaysia as well as expose
the legal issues surrounding the effective resolution of Islamic finance
disputes in Malaysia. The exploratory study involved several case
analyses and judicial pronouncement of some landmark cases during the
four decades that Islamic finance has been operating in Malaysia. A
content legal analysis of the two most important primary sources-case
law and legislation- were used to examine the current state of dispute
resolution in the Islamic finance industry in Malaysia. The main findings
of the study indicated that the Islamic finance industry which is
renowned for its product quality is now also known for the many
confrontations, claims, disputes and litigations that permeate the industry.
The study also revealed that despite the trends showing changes in the
dispute resolution sector of the Islamic finance industry in terms of legal
framework reforms, the current jurisdiction over Islamic finance matters
that rest with the civil courts and its consequential issues have not helped
the industry, the challenge of adequate access to justice still lingers on.
Implications of, and limitations to the study are also discussed.