Purworejo Religious Court Decision No. 933 of 2015: Bank Not In Contractual Relations With Plaintiffs

The parties (except the third defendant) were siblings and beneficiaries under their deceased parent's will. The estate of the deceased comprised a 1093m2 property, which had become the subject of a dispute between the parties. The plaintiffs submitted that, on 17 December 2013, the first and second defendants, unbeknownst to the plaintiffs, leveraged the property to obtain a murabahah financing agreement from the third defendant (a shari'a bank) for IDR 170 million. Moreover, the plaintiffs submitted that the third defendant, as a shari'a bank, had already contravened the principle of prudence, because the third defendant entered into the agreement without the approval of the plaintiffs.

The third defendant, however, submitted that, as it had not entered into contractual relations with the plaintiffs, the plaintiffs had no grounds on which to issue proceedings against it. The court acceded to the third defendant's objection and, therefore, dismissed the plaintiffs' application.

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