The Federal Court in Putrajaya today remitted a civil dispute between Selangor Menteri Besar Khalid Ibrahim and Bank Islam Malaysia Berhad (BIMB) to the High Court for the full trial.

Chief Justice Arifin Zakaria, leading a five-man panel, made the decision after the panel declined to answer constitutional questions that were referred to the apex court for determination.

Justice Arifin said it was the panel's view that when any constitutional issues arose in the case, those issues would not be determined by way of referral to the Federal Court.

NONE The other judges presiding on the panel were Court of Appeal President Md Raus Sharif, Chief Judge of Malaya Zulkefli Ahmad Makinuddin, Chief Judge of Sabah and Sarawak Richard Malanjum and Federal Court judge Hamid Embong.

On Khalid's ( left ) application, the High Court referred five legal questions.

One of the questions was whether Section 56 and Section 57 of the Central Bank of Malaysia Act 2009 were unconstitutional and void for contravening Article 74 of the federal constitution read together with the ninth schedule of the constitution for the Syariah Advisory Council having been vested with the power to ascertain Islamic law.

Section 56 states that where in any proceedings relating to Islamic financial business before any court or arbitrator, any question that arises concerning a syariah matter, the court or arbitrator shall take into consideration any published rulings of the Syariah Advisory Council or refer such question to the said council for its ruling.

 No ruling

Earlier, Justice Arifin questioned whether the High Court had made any ruling that the case involved Islamic law to which lawyer Malik Imtiaz Sarwar, representing Khalid, responded that there was none.

Khalid, who was CEO of Guthrie Berhad from 1995 to 2003, sued BIMB over alleged wrongful sale of his shares in Guthrie Berhad under the Al-Bai Bithaman Ajil (BBA) loan facility.

He wants a declaration that there was a collateral contract between him and the bank relating to the BBA loan facility and also sought for damages from BIMB.

BIMB filed a counter suit on May 24, 2007 to recover RM66.67 million, claiming that the BBA agreement had been breached following Khalid's failure to repay the loan.

In August 2009, Khalid was ordered by the High Court to pay RM66.67 million in a summary judgment obtained by the bank but the Court of Appeal on March 3 last year set aside the judgment and ordered a full trial of the issues.

Meanwhile, Bank Negara was allowed as amicus curiae (friend of the court).

- Bernama