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CLJ Logo CLJ Bulletin, Issue 2013, Vol 22
31 May 2013

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Introduction:

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New This Week

1. Cases Of The Week

a) LEE LAI CHING v. LIM HOOI TEIK

b) ABDUL RAZAK DATUK ABU SAMAH v. RAJA BADRUL HISHAM RAJA ZEZEMAN SHAH & ORS

c) ROZITA ISMAIL lwn. PENGARAH JABATAN KERJA RAYA NEGERI KEDAH & SATU LAGI [2012] 2 SMC 322

d) JUDICIAL QUOTES

2. Latest Cases

a) Legal Network Series

b) CLJ 2013 Volume 3 (Part 7)

3. Articles

a) Legal Network Series Article

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASES OF THE WEEK

LEE LAI CHING v. LIM HOOI TEIK
HIGH COURT MALAYA, PULAU PINANG
ZAMANI A RAHIM J
[CIVIL SUIT NO: 22-587-2004]
8 FEBRUARY 2013

FAMILY LAW: Children - Paternity - Whether DNA test should be ordered - Whether a person could be compelled to undergo DNA test against his will - Whether it would constitute hurt - Whether there was no specific provision of statute to order DNA testing - Best interest of child - United Nations Convention on the Rights of the Child, arts. 3 & 7 - Federal Constitution, art. 8

ABDUL RAZAK DATUK ABU SAMAH v. RAJA BADRUL HISHAM RAJA ZEZEMAN SHAH & ORS
HIGH COURT MALAYA, KUALA LUMPUR
VAZEER ALAM MYDIN MEERA JC
[CIVIL SUIT: 21NCVC-96-2011]
11 APRIL 2013

TORT: Negligence - Professional negligence - Whether surgeon and anaesthetists negligent in management and treatment of patient - Whether inherent and material risks of surgery and anaesthesia explained to patient - Whether patient's consent to surgery obtained without her appreciation of risks involved - Whether patient's primary care doctor owed duty to explain nature and risks of surgery to patient's next of kin who was decision-maker

TORT: Negligence - Duty of care - Duty to inform risks involved in management and treatment of patient - Whether duty of care to explain nature and risks of surgery extended to next of kin - Whether patient relied on next of kin to make decision

ROZITA ISMAIL lwn. PENGARAH JABATAN KERJA RAYA NEGERI KEDAH & SATU LAGI [2012] 2 SMC 322
MAHKAMAH MAJISTRET, ALOR SETAR
MOHD AZHAR HAMZAH MJ
[KES SIVIL NO: 73-190-2011]
5 JULAI 2012

TORT: Kemalangan jalan raya - Tuntutan - Lubang di tengah jalan raya - Liabiliti kerajaan - Sama ada terhad kepada jalan yang sedang diselenggara - Sama ada kerja-kerja penyelenggaraan berjalan di tempat terbabit - Sama ada beban atas pihak defendan untuk membuktikan kerja penyelenggaraan dijalankan di tempat terbabit - Sama ada prinsip "nonfeasance" terpakai - Akta Prosiding Kerajaan 1956, s. 7

JUDICIAL QUOTES

PP v. AYAR & ORS [2010] 9 CLJ 1006

[2] Issues: (i) Whether a Magistrate, in rejecting an application for a remand order, should desirably state his reasons for the rejection; and (ii) Whether it is proper for him, in so rejecting the application, to employ the phrase "acquitted and discharged":

"Although s. 117 Criminal Procedure Code does not stipulate that a Magistrate must give reasons when rejecting an application for a remand order, it is desirable that a Magistrate give reasons for rejecting an application for a remand order. This is to enable the High Court to determine whether the order rejecting the application was correct in law, when an application to revise the order of the Magistrate is made in the High Court."

"It is wrong in law to use the phrase "acquitted and discharged" in an application for a remand order. In rejecting an application, a Magistrate should order the respondents to be released instead of to be "acquitted and discharged" - per Teo Say Eng JC in PP v. Ayar & Ors [2010] 9 CLJ 1006.

For more Judicial Quotes, please login and view under "References" or subscribe to CLJLaw.

LATEST CASES

Legal Network Series

[2010] 1 LNS 860

ACE INA INTERNATIONAL HOLDINGS LTD v. ADVANCE SYNERGY CAPITAL BERHAD
(NO 2)

CONTRACT: Illegality - Agreement - Contravention of law - Inclusion of option clause in agreement between the parties - Whether should have been preceded by a letter from BNM permitting inclusion of the same - Whether option clause was illegal for being against public policy - Whether BNM's letter of 28 August 2001 amounted to an in principle approval for inclusion of the option clause - Insurance Act 1996, s. 67(1)

[2010] 1 LNS 971

MALAYAN BANKING BERHAD v. GREEN EAST ENTERPRISE SDN BHD & ORS

CONTRACT: Breach - Agreement - Terms and conditions of the Overdraft and Overdraft/Progress Claim facilities - Whether plaintiff proved breach of the facilities by 1st defendant

CONTRACT: Guarantee - Liability of guarantor - Whether letters of demand served on 3rd defendant - Whether any other guarantee signed by either the 2nd defendant or the new replacement director or both of them to replace the guarantee earlier executed by 2nd and 3rd defendants - Whether earlier Letter of Guarantee signed by the 2nd and 3rd defendant still in existence and valid - Resignation of 3rd defendant as a director on 28 December 1998 - Whether 3rd defendant discharged as guarantor - Whether 3rd defendant's liability under the Letter of Guarantee dated 12 January 1996 was a limited one

EVIDENCE: Documentary evidence - Computer printout - Certificate - Whether statements of accounts admissible without production of a certificate under s. 90A(2) of the Evidence Act 1950 - Testimony by officer that statement of accounts were computer printouts - Whether requirement in s. 90A(1) satisfied - Whether a certificate under s. 90A(2) necessary - Whether the statements of accounts properly produced

[2010] 1 LNS 973

MAYBAN FINANCE BHD v. CHANG MUN ENTERPRISE SDN BHD & ORS

CONTRACT: Sale and purchase of land - Agreement - Breach - Plaintiff disbursed payments to the developer for stages 5 and 6 - Whether plaintiff committed a breach of the loan agreement and sale and purchase agreement in doing so - Whether plaintiff entitled to release loan for stages 5 and 6 pursuant to the loan agreement and sale and purchase agreement

TORT: Negligence - Banker and customer - Duty of care - Whether plaintiff failed to take reasonable care and skill as a banker - Whether plaintiff under a duty of care to verify authenticity of the engineer's certificate before releasing the loan for stages 5 and 6

[2010] 1 LNS 1128

HALEYWOOD INDUSTRIES SDN BHD v. LEMBAGA KUMPULAN WANG SIMPANAN PEKERJA

COMPANY LAW: Liquidation - Plaintiff company represented it had sanction of the Official Receiver to commence action - Authorization of Official Receiver to sanction - Whether Official Receiver had authority to sanction an ex-director of plaintiff company to institute this suit

[2011] 1 LNS 620

USAPE NELSON WIRELESS SDN BHD v. MACRO KIOSK BERHAD

CONTRACT: Breach - Partnership agreement - Refusal to transfer short code connected to mobile operators to plaintiff - Whether there was a valid request made by plaintiff pursuant to clause 2(iii) of the partnership agreement - Whether defendant obliged to accede to request - Whether defendant breached the partnership agreement

TRUSTS AND TRUSTEES: Constructive trust - Whether a trust had been created on the short code - Whether relationship between parties created by contract or equity

CLJ 2013 Volume 3 (Part 7)

COURT

FEDERAL COURT

Wong Wee Kheong & Anor v. Daya Bersama Sdn Bhd & Other Appeals
Zulkefli Makinudin CJ (Malaya), Abdull Hamid Embong, Suriyadi Halim Omar, Ahmad Maarop, Zaleha Zahari FCJJ
(Company Law - Winding up - Disposition of property - Failure to obtain consent of liquidator or order of court - Whether transaction valid) [2013] 3 CLJ 969 [FC]

COURT OF APPEAL

Dato Bandar Kuala Lumpur v. Ahmad Jaafar Abdul Latiff
Hishamudin Mohd Yunus, Anantham Kasinather, Lim Yee Lan JJCA
(Local Government - Maintenance and repair - Negligence - Breach - Statutory duty of mayor under s. 101 Local Government Act 1976) [2013] 3 CLJ 987 [CA]

Ismail Abd Hamid v. Ketua Polis Daerah Timur Laut Pulau Pinang & Ors
Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA
(Administrative Law - Judicial review - Dismissal of police officer ) [2013] 3 CLJ 997 [CA]

Langkawi R & D Academy Sdn Bhd v. Ketua Setiausaha, Kementerian Pertahanan Malaysia & Ors
Abdul Malik Ishak, Ramly Ali, Mohamed Apandi Ali JJCA
(Civil Procedure; Contract - Trial - Mode of trial) [2013] 3 CLJ 1006 [CA]

Sulaiman Hamat v. PP
KN Segara, Abdul Wahab Patail, Azahar Mohamed JJCA
(Criminal Law; Evidence - Penal Code - Section 302 - Murder - Admissibility of evidence - Information leading to fact discovered) [2013] 3 CLJ 1027 [CA]

HIGH COURT

Dato' Seri Anwar Ibrahim v. PP
Kamardin Hashim J
(Constitutional Law - Fundamental liberties - Freedom of assembly) [2013] 3 CLJ 1043 [HC]

Kevin Goldman v. Geraldine Audrey Herrera
Noraini Abdul Rahman J
(Family Law; Civil Procedure - Children - Custody - Application to vary decree nisi and agreement) [2013] 3 CLJ 1049 [HC]

PP v. Tan Choon Ein
Zamani A Rahim J
(Criminal Procedure - Bail - Conditions for bail) [2013] 3 CLJ 1068 [HC]

Zuraimi Bachok lwn. PP
Abdul Karim Abdul Jalil PK
(Keterangan; Prosedur Jenayah; Undang-undang Jenayah - Sama ada keterangan saksi kanak-kanak boleh diterima) [2013] 3 CLJ 1077 [HC]

SUBJECT INDEX

ADMINISTRATIVE LAW

Judicial review - Application for - Dismissal of police officer - Disciplinary proceedings - Whether Public Officers (Conduct and Discipline) Regulations 1993 applicable to junior police officers - Whether junior police officers must be charged in accordance with offence prescribed in Police (Conduct and Discipline) (Junior Police Officers and Constables) Regulations 1970 - Whether charge illegal and unlawful - Whether there were sufficient grounds to allow judicial review - Whether High Court erred in dismissing application
Ismail Abd Hamid v. Ketua Polis Daerah Timur Laut Pulau Pinang & Ors
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2013] 3 CLJ 997 [CA]

Public servants - Dismissal of junior police officer - Disciplinary proceedings - Whether Public Officers (Conduct and Discipline) Regulations 1993 applicable to junior police officers - Whether junior police officers must be charged in accordance with offence prescribed in Police (Conduct and Discipline) (Junior Police Officers and Constables) Regulations 1970 - Whether charge framed illegal and unlawful - Whether appellant's dismissal void and of no effect
Ismail Abd Hamid v. Ketua Polis Daerah Timur Laut Pulau Pinang & Ors
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2013] 3 CLJ 997 [CA]

CIVIL PROCEDURE

Contempt of court - Committal proceedings - Breach of terms of decree nisi and agreement - Proper procedure for filing committal proceedings - Whether under O. 52 of the Rules of the High Court 1980 and notice of ancillary relief under Divorce and Matrimonial Proceedings Rules 1980
Kevin Goldman v. Geraldine Audrey Herrera
(Noraini Abdul Rahman J) [2013] 3 CLJ 1049 [HC]

Trial - Mode of trial - Case resolved by way of written submissions - Whether parties concurred with mode adopted by judge - Whether an exercise of unfettered discretion by High Court Judge - Rules of the High Court 1980, O. 33 r. 2
Langkawi R & D Academy Sdn Bhd v. Ketua Setiausaha, Kementerian Pertahanan Malaysia & Ors
(Abdul Malik Ishak, Ramly Ali, Mohamed Apandi Ali JJCA) [2013] 3 CLJ 1006 [CA]

COMPANY LAW

Winding up - Disposition of property - Sale and purchase agreement - Failure to obtain consent of liquidator or order of court - Whether transaction valid - Purchasers acquired property in good faith for value without notice - Proof of - Allegation of fraud - Whether actual fraud proven - Whether records showed company wound up at time transaction took place - Whether purchasers' title indefeasible - Whether company relinquished its registered interest when sale of property concluded - Whether court has discretion to validate transfer - Companies Act 1965,
s. 233 - National Land Code, s. 340(1)
Wong Wee Kheong & Anor v. Daya Bersama Sdn Bhd & Other Appeals
(Zulkefli Makinudin CJ (Malaya), Abdull Hamid Embong, Suriyadi Halim Omar, Ahmad Maarop, Zaleha Zahari FCJJ) [2013] 3 CLJ 969 [FC]

CONTRACT

Breach - Repudiatory breach - Failure to comply with terms of contract - Whether fundamental term of contract - Whether innocent party entitled to repudiate contract - Whether discharged from contract - Whether entitled to damages
Langkawi R & D Academy Sdn Bhd v. Ketua Setiausaha, Kementerian Pertahanan Malaysia & Ors
(Abdul Malik Ishak, Ramly Ali, Mohamed Apandi Ali JJCA) [2013] 3 CLJ 1006 [CA]

CONSTITUTIONAL LAW

Fundamental liberties - Freedom of assembly - Applicant charged under Peaceful Assembly Act 2012 - Charges related to street protest - Article 10(1)(b) Federal Constitution guaranteed freedom of assembly peaceably without arms - Whether provisions under s. 4(1)(c) and s. 4(2)(c) Peaceful Assembly Act 2012 contravenes art. 10(1)(b) Federal Constitution - Whether freedom of assembly an absolute right
Dato' Seri Anwar Ibrahim v. PP
(Kamardin Hashim J) [2013] 3 CLJ 1043 [HC]

CRIMINAL LAW

Penal Code - Section 302 - Murder - Conviction and sentence - Appeal against - Admissibility of evidence - Information leading to fact discovered - Information given by accused while in police custody - Evidence Act 1950, s. 27 - Application of - Whether exhibits disputed was related to discovery of facts contained in information - Various deficiencies in evidence - Whether there was evidence rendering conviction unsafe
Sulaiman Hamat v. PP
(KN Segara, Abdul Wahab Patail, Azahar Mohamed JJCA) [2013] 3 CLJ 1027 [CA]

CRIMINAL PROCEDURE

Bail - Granting of - Conditions for bail - Theft - Penal Code, s. 457 - Accused sentenced to four years imprisonment and one stroke whipping - Absence of instructions to appeal by accused or family - Stay pending appeal allowed on bail - Whether bail justified
PP v. Tan Choon Ein
(Zamani A Rahim J) [2013] 3 CLJ 1068 [HC]

Stay of execution pending appeal - Application for - Absence of instructions to appeal by accused or family - Application for stay allowed on enhanced bail - Whether grounds of application constituted special circumstances to justify stay
PP v. Tan Choon Ein
(Zamani A Rahim J) [2013] 3 CLJ 1068 [HC]

EVIDENCE

Admissibility - Information leading to fact discovered - Information given by accused while in police custody - Evidence Act 1950, s. 27 - Application of - Whether exhibits disputed related to discovery of facts contained in information - Various deficiencies in evidence - Whether there was evidence rendering conviction unsafe
Sulaiman Hamat v. PP
(KN Segara, Abdul Wahab Patail, Azahar Mohamed JJCA) [2013] 3 CLJ 1027 [CA]

FAMILY LAW

Children - Custody - Application to vary decree nisi and agreement - Child of marriage sexually abused by grandfather - Whether child needed protection against grandfather - Whether court under additional duty to protect child - Whether "extended family" under s. 17 Child Act 2001 included grandfather - Whether there was risk that child would be subject to physical, emotional and sexual harm if decree nisi not varied
Kevin Goldman v. Geraldine Audrey Herrera
(Noraini Abdul Rahman J) [2013] 3 CLJ 1049 [HC]

Divorce - Decree nisi - Application to vary decree nisi and agreement - Child of marriage sexually abused by grandfather - Whether child needed protection against grandfather - Whether court under additional duty to protect child - Whether "extended family" under s. 17 Child Act 2001 included grandfather - Whether there was risk that child would be subject to physical, emotional and sexual harm if decree nisi not varied
Kevin Goldman v. Geraldine Audrey Herrera
(Noraini Abdul Rahman J) [2013] 3 CLJ 1049 [HC]

LOCAL GOVERNMENT

Maintenance and repair - Negligence - Breach - Allegation of - Tree fell on car causing severe injuries to driver and damages to car - Statutory duty of mayor under s. 101 Local Government Act 1976 - Whether extended to all trees in city - Whether tree posed danger to public - Absence of expert evidence - Whether respondent entitled to rely on doctrine of res ipsa loquitur - Whether respondent failed to discharge burden of proving appellant in breach of its duty of care
Dato Bandar Kuala Lumpur v. Ahmad Jaafar Abdul Latiff
(Hishamudin Mohd Yunus, Anantham Kasinather, Lim Yee Lan JJCA) [2013] 3 CLJ 987 [CA]

INDEKS PERKARA

KETERANGAN

Saksi - Percanggahan - Keterangan saksi pendakwaan berbeza daripada laporan polis - Sama ada laporan polis keterangan substantif - Sama ada menjejaskan kes pendakwaan
Zuraimi Bachok lwn. PP
(Abdul Karim Abdul Jalil PK) [2013] 3 CLJ 1077 [HC]

Saksi - Saksi kanak-kanak - Sama ada keterangan saksi kanak-kanak boleh diterima - Sama ada s. 133A Akta Keterangan 1950 terpakai kepada semua kanak-kanak - Takrifan makna usia muda - Sama ada saksi berumur 16 tahun seorang yang masih muda atau belum matang - Sama ada saksi diajar atau diasuh - Sama ada saksi dapat membezakan antara hakikat dan imaginasi
Zuraimi Bachok lwn. PP
(Abdul Karim Abdul Jalil PK) [2013] 3 CLJ 1077 [HC]

PROSEDUR JENAYAH

Laporan atau sijil - Laporan analisa DNA - Laporan ahli kimia - Permohonan - Kegagalan pendakwaan memanggil ahli kimia yang menyediakan laporan analisa DNA walaupun notis di bawah s. 399 Kanun Tatacara Jenayah diberikan - Sama ada menjejaskan kes pendakwaan
Zuraimi Bachok lwn. PP
(Abdul Karim Abdul Jalil PK) [2013] 3 CLJ 1077 [HC]

UNDANG-UNDANG JENAYAH

Kanun Keseksaan - Seksyen 376 - Rogol - Mangsa bawah umur - Rayuan terhadap sabitan dan hukuman - Sama ada percanggahan dalam keterangan mangsa menjejaskan kebolehpercayaan mangsa - Keterangan berbeza daripada laporan polis - Sama ada kegagalan pendakwaan memanggil ahli kimia menjejaskan kes pendakwaan - Sama ada kes prima facie terbukti - Sama ada kes pendakwaan dibuktikan tanpa keraguan yang munasabah - Sama ada sabitan selamat
Zuraimi Bachok lwn. PP
(Abdul Karim Abdul Jalil PK) [2013] 3 CLJ 1077 [HC]

ARTICLE
LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
ACT 755 Finance Act 2013 11 January 2013 -Nil-
ACT 756 Traditional And Complementary Medicine Act 2013 Not Yet In Force -Nil-
ACT 757 Strata Management Act 2013 Not Yet In Force -Nil-
ACT 758 Financial Services Act 2013 Not Yet In Force -Nil-
ACT 759 Islamic Financial Services Act 2013 Not Yet In Force -Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
ACT A1448 Central Bank Of Malaysia (Amendment) Act 2013 8 February 2013 [PU(B) 44/2013] ACT 701
ACT A1449 Industrial Designs (Amendment) Act 2013 1 July 2013 [PU(B) 86/2013] ACT 552
ACT A1450 Strata Titles (Amendment) Act 2013 Not Yet In Force ACT 318
ACT A1451 Perbadanan Kemajuan Filem Nasional Malaysia (Amendment) Act 2013 1 April 2013 [PU(B) 89/2013] ACT 244
ACT A1452 Animals (Amendment) Act 2013 Not Yet In Force ACT 647

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 161/2013 Price Control And Anti-Profiteering (Determination Of Maximum Price) (No. 3) Order 2013 23 May 2013 26 May 2013 to 31 May 2013 ACT 723
PU(A) 162/2013 Price Control And Anti-Profiteering (Price Marking Of Price-Controlled Goods) (No. 2) Order 2013 23 May 2013 25 May 2013 to 31 May 2013 ACT 723
PU(A) 164/2013 Price Control And Anti-Profiteering (Price Marking Of Price-Controlled Goods) (No. 3) Order 2013 23 May 2013 27 May 2013 to 2 June 2013 ACT 723
PU(A) 165/2013 Minimum Wages (Amendment) Order 2013 28 May 2013 29 May 2013 ACT 732
PU(A) 166/2013 Proclamation 28 May 2013 29 May 2013 ACT 000

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 213/2013 Results Of Contested Election And Statements Of The Poll After The Official Addition Of Votes Parliamentary Constituencies For The State Of Terengganu 22 May 2013 23 May 2013 ACT 19
PU(B) 214/2013 Results Of Contested Election And Statements Of The Poll After The Official Addition Of Votes Parliamentary Constituencies For The State Of Penang 22 May 2013 23 May 2013 ACT 19
PU(B) 215/2013 Results Of Contested Election And Statements Of The Poll After The Official Addition Of Votes Parliamentary Constituencies For The State Of Perak 22 May 2013 23 May 2013 ACT 19
PU(B) 216/2013 Results Of Contested Election And Statements Of The Poll After The Official Addition Of Votes Parliamentary Constituencies For The State Of Pahang 22 May 2013 23 May 2013 ACT 19
PU(B) 217/2013 Results Of Contested Election And Statements Of The Poll After The Official Addition Of Votes Parliamentary Constituencies For The State Of Selangor 22 May 2013 23 May 2013 ACT 19
[2013] 1 LNS(A) xxxiii MALAYSIA

INSURED RISK, EXCLUDED RISK, THE INSURED, AND THE INSURER - A LOVE RECTANGLE IN THE INSURANCE UNIVERSE

by

AHMAD AIZEK BUSU ABDUL AZIZ*


IN THIS ARTICLE, AHMAD AIZEK BUSU ABDUL AZIZ ANALYSES THE DECISION IN MALAYSIAN MOTOR INSURANCE POOL (FORMERLY KNOWN AS HRMIP) V. NAZA MOTOR TRADING SDN BHD[1] IN RELATION TO THE INSURED RISK OF THEFT AND EXCLUDED RISK OF CHEATING IN A MOTOR TRADE INSURANCE POLICY.

Introduction

According to the statistics[2] by Persatuan Insurans Am Malaysia (PIAM) on stolen vehicles, a total of 41,920 vehicles were stolen in the year 2009, followed by a slight decrease to a total of 37,564 vehicles in 2010. Comprehensive motor vehicle insurance policies regulated by tariff wording offer coverage for losses due to, among others, the peril of theft but exclude coverage for the loss of motor vehicle due to cheating.


. . .

* Published with kind permission of M/s Shearn Delamore & Co.


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[2013] 1 LNS(A) xxxiv MALAYSIA

ISLAMIC FINANCIAL LEASE:
ISSUES AND CHALLENGES IN THE LIGHT OF THE MALAYSIAN LEGAL AND REGULATORY FRAMEWORK WITH SPECIAL REFERENCE TO HIRE PURCHASE ACT

by

ALEN CELEBIC*


1. Introduction:

The Islamic Banking Act (IBA)[1] and enabling provisions found in the Banking and Financial Institutions Act (BAFIA)[2] established legal foundations for the development of Islamic Finance in Malaysia. Today, thirty years after the first steps have been taken, many issues are still to be settled and numerous questions are to be answered.

While on the one hand conventional banking serves as an example of contemporary intermediary business for the development of Islamic finance, on the other, it represents a competition which ignites Islamic banks to put extra effort and creativity when providing the customers with outstanding, competitive and halal[3] products. The need to sustain and develop Islamic financial businesses while dealing with delicate issues of customer satisfaction, avoidance of riba and portfolio management forced Islamic banks to devise financial products in order to meet the standards established in the banking industry. Among the number of various products designed and presented over time by Islamic banks, Al-Ijarah Thumma al-Bay (AITAB) has been given the most recognition. This is due to its wide specter of application, simplicity and practicality.


. . .

* Masters of Comparative Law, Ahmad Ibrahim Kuliyyah of Laws, International Islamic University Malaysia.


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