Islamic Finance Cases

Arab Malaysian Merchant Bank v Silver Concept
(2008) 6 MLJ 295
Wahab Patail J.:
It was submitted for the plaintiff that the SAC had determined
that the BBA complied with the Shariah and once the
determination is made on the issue of Shariah compliance by the
said SAC any question on their said determination can be
referred to the SAC.
Section 16B of the CBA 1958 however does not make reference
mandatory. It clearly did not intend the SAC in the executive
branch of government to be the judicial authority. Thus, its
rulings are binding onlyupon the arbitrator where reference is
made by an arbitrator.
In the case of reference by the court, the ruling is not binding
but shall be taken into consideration. Given that reference is
discretionary and the rulings are not binding, and taking into
consideration the issue is not as to the Shariah compliance of the
ABBA facility but the interpretation of its terms, the court is of
the opinion reference is not necessary.