The plaintiff was a customer of the first defendant at the Lubuk Buaya Shari'a Micro-Service Unit. There he had entered into a Murabahah agreement (dated 7 July 2009), pursuant to which the first defendant executed a take over loan for the plaintiff to the value of IDR 200 million. The plaintiff was to return to the first defendant the loan and reward valued at IDR 153,600,000. Accordingly, the plaintiff was obligated to pay to the first defendant IDR 353,600,000. According to the plaintiff, the first defendant's profit was IDR 153,600,000, or equivalent to 76.5 per cent of the take over loan (IDR 200 million), which the plaintiff could not afford to pay. The plaintiff submitted that this was unlawful because, according to Islamic shari'a, the plaintiff was only entitled to 10 per cent of the profit, but had to pay to the first defendant 76.5 per cent of the contract price.
The Padang High Religious Court found that, as the parties had agreed to this profit margin, it was unable to intervene. While it did not object to the reasoning of the lower court, it handed down its own judgment, amending formulaic errors in the lower court's judgment.