JOBNAME: No Job Name PAGE: 1 SESS: 5 OUTPUT: Mon Feb 27 21:46:52 2017 //MLJA/2017/Vol1/mlja2017_1_00108 NEO-JUDICIAL PROCEDURE FOR ADJUDICATION AND ARBITRATION ON ISLAMIC FINANCIAL CASES: REFERENCE TO SHARIAH COUNCIL ON SHARIAH MATTERS by ABDUL AZEEZ MARUF OLAYEMI 1 and SITI MASHITOH MAHAMOOD 2 and AHMAD HIDAYAT BUANG 3 Abstract The Islamic financial institutions hitherto, had suffered adverse civil court decisions. The situation is blamed on the obnoxious legal reasoning of the courts of jurisdiction. Thus, the Malaysian policy-makers took the cognisance of the matter and their efforts in the regard culminates in the enactment of ss 56 and 57 of the Central Bank of Malaysia Act 2009. The section mandates courts to refer to the Shariah Advisory Council to answer questions in casesthat involve the industry. The contention as to whether the section does not encroach on the constitutional power of the judiciary was also cleared inTan Sri Abdul Khalid Ibrahim v Bank Islam (M) Bhd [2013] 3 MLJ 269. 4 The case indicates the section as a new procedural requirement for adjudication and arbitration in the cases that involve the Islamic financial institutions. The current paper advocates for the universality of the nascent procedure. Keywords: New Judicial procedure, Islamic Banking and Financial Cases 1 Post-Doctoral Research Fellow, PhD, MCL, LLB, MCIArb, IBA, Department of Shariah and Law, API/IPPP, University of Malaya, Malaysia, E-mail: ma1129uk@yahoo.co.uk, ma1129uk@um.edu.my. 2 Associate Professor, PhD, Department of Shariah and Law Department, Academy of Islamic Studies, University of Malaya, Kuala Lumpur, Malaysia. 3 Professor, Dato, Department of Shariah and Law Department, Academy of Islamic Studies, University of Malaya, Kuala Lumpur, Malaysia. 4 Tan Sri Abdul Khalid Ibrahim v Bank Islam (M) Bhd [2013] 3 MLJ 269 cviii [2017] 1 MLJ Malayan Law Journal