CIMB Islamic Bank Bhd v LCL Corp Bhd & Anor [2015] 8 MLJ 832

COUNSEL & SOLICITOR:
Tan Keng Teck (Lui Kar Yee and Mohamad bin Burok with him)(Lim Kian Leong & Co) for the second defendant.

HIGH COURT (KUALA LUMPUR)

Banking — Banks and banking business — Islamic banking — Bank granted facility to borrower under principle of Al-Bai Bithaman Ajil — Hibah — Default in payment by borrower — Action taken by borrower’s managing director and principal shareholder — Whether there was locus standi to initiate action — Allegations instruments not in conformity with the Shariah principle of financing — Whether proved — Whether Al-Bai Bithaman Ajil transactions infringed ss 67 and 67A of the Companies Act 1965 — Whether transactions entered into between tainted with duress, coercion, threats and misrepresentation.