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    Tan Sri Khalid High Court Summary

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    hana.MS
    1) Bank Islam provided two Murabaha facilities to Tan Sri Khalid to acquire shares in Kumpulan Gutrie Berhad, but he repeatedly breached the agreements. 2) The bank then offered a restructuring agreement that Tan Sri Khalid agreed to but later breached as well. The bank sued in response. 3) The court ruled in favor of the bank, finding that Tan Sri Khalid acknowledged his liability and benefited from the facilities, so could not later challenge their validity. It also determined the bank properly executed its rights to sell the pledged shares to recover the debt.

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    Tan Sri Khalid High Court Summary

    Uploaded by

    hana.MS
    247 views2 pages
    1) Bank Islam provided two Murabaha facilities to Tan Sri Khalid to acquire shares in Kumpulan Gutrie Berhad, but he repeatedly breached the agreements. 2) The bank then offered a restructuring agreement that Tan Sri Khalid agreed to but later breached as well. The bank sued in response. 3) The court ruled in favor of the bank, finding that Tan Sri Khalid acknowledged his liability and benefited from the facilities, so could not later challenge their validity. It also determined the bank properly executed its rights to sell the pledged shares to recover the debt.

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    1) Bank Islam provided two Murabaha facilities to Tan Sri Khalid to acquire shares in Kumpulan Gutrie Berhad, but he repeatedly breached the agreements. 2) The bank then offered a restructuring agreement that Tan Sri Khalid agreed to but later breached as well. The bank sued in response. 3) The court ruled in favor of the bank, finding that Tan Sri Khalid acknowledged his liability and benefited from the facilities, so could not later challenge their validity. It also determined the bank properly executed its rights to sell the pledged shares to recover the debt.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    247 views2 pages

    Tan Sri Khalid High Court Summary

    Uploaded by

    hana.MS
    1) Bank Islam provided two Murabaha facilities to Tan Sri Khalid to acquire shares in Kumpulan Gutrie Berhad, but he repeatedly breached the agreements. 2) The bank then offered a restructuring agreement that Tan Sri Khalid agreed to but later breached as well. The bank sued in response. 3) The court ruled in favor of the bank, finding that Tan Sri Khalid acknowledged his liability and benefited from the facilities, so could not later challenge their validity. It also determined the bank properly executed its rights to sell the pledged shares to recover the debt.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    LWM 738 Islamic Banking and Finance

    Discussion on Case Review

    TAN SRI ABDUL KHALID IBRAHIM v.


    BANK ISLAM MALAYSIA BHD & ANOTHER CASE [2010] 4 CLJ
    HIGH COURT MALAYA, KUALA LUMPUR
    ROHANA YUSUF J

    Summary Facts:

    1. Bank Islam agreed to provide 2 Murahaba Facilities to Tan Sri Khalid to acquire more
    shares in Kumpulan Gutrie Berhad
    2. Due to repeated breaches by Tan Sri Khalid, Bank offered him a restructuring and Tan Sri
    Khalid agreed.
    3. But later, Tan Sri Khalid breached the restructuring agreement. Bank sued.

    Issues:

    1. whether there existed a collateral agreement between the parties orally and by conduct;
    whether the validity of the BBA Facility Agreement was challenged for want of compliance
    with the principles of Syariah;
    2. whether the mode of execution of Asset Purchase Agreement (APA) and Asset Sale
    Agreement (ASA) was improper because Tan Sri Khalid was made to sign the agreements
    first before they were passed back to be completed by the Bank;
    3. whether there was wrongful sale of pledged shares because of (1)the Banks failure to
    obtain the consent from Tan Sri Khalid and (2) that there may have been impropriety on
    the part of CIMB Investment Bank Berhad who handled the sale of the pledged Guthrie
    Shares.

    Summary Judgement:

    1. In relation to the first issue:


    The court does not consider the existence of any collateral agreement between the
    parties since documentary evidences proved that Tan Sri Khalid acknowledged his liability
    under the BBA Facility Agreement.

    The court thinks that it is inappropriate & Not bona fide for Tan Sri Khalid to challenge the
    validity of the BBA Agreement after he benefited from it, and this a mere afterthought.

    2. In relation to the second issue:


    The mode of execution of APA and ASA was proper in line with required standards of Bank
    Negara.

    The court said that in Shariah, the obligation to settle debts is of high importance.
    3. In relation to 3rd issue:
    Tan Sri Khalid had given his full mandate & consent that upon signing the BBA Facility, the
    Bank has full rights to sell the shares of Kumpulan Guthrie.

    The Bank was just executing its rights under the BBA Facility and this is fine.

    Conclusion: Tan Sri Khalid needs to settle his debt.

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