First 'super Bench' of nine judges decides Bank Negara council supercedes civil courts on syariah matters

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PUTRAJAYA: In an unprecedented move, a nine-man Federal Court Bench handed down a landmark majority judgment that any decision by Bank Negara's Syariah Advisory Council (SAC) on Islamic finance is constitutional and binding on civil courts even though the Council is not a judicial body.

The nine-man super Bench is the first in the nation's history, but the landmark decision was a narrow 5-4 decision.

The dissenting judgment basically rules that section 57 of the Central Bank of Malaysia Act 2009, which gives the SAC its judicial power, contravenes Article 121 of the Federal Constitution which touches on the judicial power of the civil courts. It further says that the SAC is accorded the status of the sole authoritative body on Shariah matters pertaining to Islamic banking, takaful and Islamic finance.

 

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