Bandung High Religious Court Decision No. 55 of 2015

The Court noted that the appellant had lodged his complaint as illegal misconduct (perbuatan melawan hukum), something outside the jurisdiction of the religious courts. It acknowledged, however, that the basis of the appellant's claim did indeed constitute a shari'a economy case, for the purposes of the elucidation of Law No. 3 of 2006, art 49(22)(i). This was because the basis of the appellant's claim derived from a Murabahah (sale-purchase) financial agreement, and a power of attorney, which the appellant believed to be legally invalid. Under the power of attorney, the respondent was authorised to sell, transfer and relinquish all rights over a parcel of land to any person, including itself, if the appellant had failed to pay its debt owing to the respondent. The appellant submitted, however, that as he had signed the agreement without properly understanding its content and effect, it, along with the Murabahah agreement, should be declared null and void. The Court disagreed with the appellant, upholding the ruling of the lower court.

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