Litigation as dispute resolution mechanism in Islamic finance: Malaysian experience
Litigation as the popular mode of dispute resolution in Islamic finance has proven inadequate in its application and interpretation of Shariah. Trails of Islamic finance cases have shown that civil court judges have no problems deciding on the civil law issues pertaining to Islamic finance, however, they are unsuited for adjudicating the Shariah issues. Section 55–58 of the Central Bank Act 2009 accords formal recognition to the Shariah Advisory Council (SAC) as their rulings is binding to the Islamic financial institutions and the courts. Post 2009 have seen that cases of law challenged the said sections as unconstitutional. The objective of this paper is to analyse the role of SAC either as expert ascertain or expert determination of the rulings on Islamic finance. In the course of discussion, s. 55–58 of Central Bank of Malaysia Act 2009 and Article 121(1) of the Constitution are analysed. Findings of the study showed that the role of SAC is merely expert ascertain of the rulings since they have no judicial power. Islamic financial law is divine in nature and different from the man made laws.
COMPARISON OF MALAYSIA-DUBAI APPROACH FOR THE ISLAMIC DISPUTE RESOLUTION SYSTEM IN ISLAMIC FINANCE (Perbandinagan Pendekatan Malaysia-Dubai dalam Sistem Penyelesaian Semula Pertikaian bagi Kewangan Islam)
ABSTRACT This paper aims to discuss the development of the dispute resolution system for Islamic finance by a cross-national perspective in the Islamic world. The mainstays of the Islamic financial market, nowadays, are the Gulf countries and Southeast Asia. In particular, the United Arab Emirates (UAE) and Malaysia are countries that have developed the industry since its inception. Therefore, this paper will focus on these two countries as case studies. As the market grew, disputes in the Islamic finance industry also increased and raised the question of how the jurisdiction for this new industry could be separated from that of conventional finance. There are discussions on how Islamic finance dispute cases should be dealt with. Malaysia has been working on these issues by focusing on Alternative Dispute Resolution (ADR) as the potential solution. On the other hand the UAE has established an epoch-making system, the “Dubai Approach”. This system has been used to settle not only disputes that were related to the financial crisis that occurred in Dubai in 2009, but also those related to Islamic finance transactions. Although the dispute resolution system for Islamic finance is in the developing stage, these two countries’ systems have unique features. Therefore, this paper will indicate the developing process for the dispute resolution system for Islamic finance. ABSTRAK Artikel ini membincangkan pembangunan sistem penyelesaian semula pertikaian untuk kewangan Islam merentas negara. Negara teluk dan asia Tenggara merupakan tulang belakang kepada pasaran kewangan Islam hari ini. Khususnya, United arab Emirates (UAE) dan Malaysia adalah dua negara yang telah membangunakn industry kewangan Islam. Maka artikel ini akan memfokuskan kedua-dua negara ini sebagai subjekkajian. Apabila pasaran kewangan islam berkembang, pertikaian dalam industri turut meningkat dan persoalan bidang kuasa bagi industri ini perlu diasingkan dari sistem kewangan konvensional. Perbincangan bagaimana menaggani kes-kes pertikaian dalam kewangan islam telah wujud. Di Malaysia, alternatif penyelesaian semula pertikaian (APP) adalah kaedah yang digunakan bagi menanggani kes pertikaian. Sebaliknya UAE menggunakan (sistem mengikut zaman) yang dinamakan ‘Pedekatan Dubai’. Sistem ini digunakan bukan hanya untuk menyelesaikan pertikaian yang berlaku semasa krisis kewangan 2009, tetapi ia juga melibatkan transaksi dalam kewangan Islam. Walaupun sistem penyelesaian semula pertikaianmasih dalam peringkat pembangunan, sistem yang digunakan oleh kedua-dua negara mempunyai ciri yang unik. Maka artikel akan menjelaskan menjelaskan bagaimana proses membangunkan sistem penyelesaian semula pertikaian bagi kewangan Islam.
La inseguridad jurídica en normas de contratación estatal
It is established by different studies that the issue of government procurement has been marred by several factors, the test objective to publicize these factors, we take as starting point the constant conflict between the branches of government to try and organize this subject; will collect and analyze diverse regulatory and case material in order to achieve evidence and demonstrate the different concepts of constant change that produces excessive regulation of the subject procurement and is in turn causing rapid changes that result in legal uncertainty for our law on the Contract Status.