Islamic Financial System in Malaysia: A Need for Recource to Syariah Court?

On 31St March 2009, Court of Appeal has revoked the decision made by High Court to announce that the contract of Bay Bithaman Ajil is null and void in the case of Arab Malaysia v Taman Ihsan Jaya Sdn. Bhd Onor [2008] 5 MLJ 631. Interestingly, the judgemelll made by Appeal Court has touched the basic elements of Islamic law especially the fundamental issues of BBA such as sell and buy contract, acceptance of difference views of school of laws in Islam and other basic issues of Shari ah principles. This subject matter of Shari ah principles should be decided the Syariah judges who are more expert in Islamic law than the civil court. This paper is looking into legal framework of Islamic Financial System in Syariah court jurisdiction as well as Civil Court.