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The same literal meaning and import as interest. A consensus among Muslim jurists exists that riba has The sense of the accumulation of wealth that is not a product of Which is given without giving anything in exchange" come to Terms such as "effortless gain" and "profit Means simply "increase, addition, expansion or growth", īut in the context of financial transactions it means much more than However, it does not define what the term riba Saying: "O ye who believe! devour not Riba The Quran expresses the prohibition against riba Unlike the limited prohibition on the charging Similar prohibitions on usurious interest exist in conventionalīanking, with the result that the distinction between interest Law generally regards the charging of interest on loans as oppressiveĪnd exploitative, and it is therefore prohibited. Riba and the charging of interest on loans Which forms the basis for distinguishing Islamic finance from its (gambling), unjustified enrichment, and riba Practices is prohibited in terms of Islamic law: gharar The question as to whether something is permitted or prohibited is In terms of Islamic law conduct is either permitted ( halaal ) (examples of the practices of Prophet Mohammed). Law is a legal system which is derived primarily from the Quran SCA decision follows thereafter, and then concluding remarks are madeįundamental principles of Islamic banking law This isįollowed by a description of the facts of the case and the decisionsĪnd, most importantly, the SCA. TheĬase note begins with a brief explication of theįundamental principles of Islamic banking law in order to establishĪpplicable to the case under discussion. To the interpretation and enforcement of Islamic finance law. The general approach of South African courts The decision of the SCA, reference is made to the decision in the HC Principles of Sharia law with regard to the prohibitionĬharging of riba interest. The purpose of this case note is toĬritically analyse the decision in Lodhi 5 SCA in order toĭetermine whether or not the court correctly applied the relevant Light of the continuing growth and expansion of Islamicįinance law in South Africa. The case raises important issues regardingĮnforceability of Islamic finance law and merits discussion in the Thus left more questions unanswered than those that were successfullyĪddressed. The interpretation of the relevant Islamic finance principles, (HC) and the SCA - did not address several issues which called for This lackĮxpertise is evident in the abovementioned case, as the courts - both It also illustrates the challengesĮncountered by common law courts with no expertise to interpret andĮnforce transactions which are subject to Sharia law. Uncodified Sharia law, which has been the subject of various When they are confronted with the interpretation and application This case illustrates the challenges that secular courts encounter In 2015 the Supremeĥ Properties Investments CC v FirstRand Bank Limited. Or at least to take cognisance of Islamic law. Is particularly so with regard to disputesĬourts in common law (and civil law) jurisdictions such as SouthĪfrica, where these courts are often called To apply and enforce agreements incorporating these principles. Officers in non-Muslim jurisdictions face challenges Of financial agreements concluded in a secular context. Where the principles of Islamic law are incorporated As a result, conflicts of law often arise This hasĬreated a demand for pertinent financial transactionsĬomply with Islamic law. Islamic law (also known as Sharia law) and practices. It signals the needed for the non-Islamic world The number of Muslims worldwide has been observed for many decades. Interest riba Hiyal profit-and-loss sharing Law and therefore merits discussion in the context of the

In particular,Ĭourt's assertion that a claim for mora interest has nothing to do As this is the first case to come before the SCA inĭiscussed the principles of Islamic law as applicable to theĭispute between the parties. Light of the approach adopted by the SCA with regard to addressing Interest on a loan in terms of Islamic lawĭefence for a claim for mora interest in terms of a loanĪgreement. This judgementĬonsidered whether the prohibition against the charging of The matter of Lodhi 5 Properties Investments CC v FirstRandīank Limited 3 All SA 32 (SCA). 3 All SA 32 (SCA) and the Enforcement of Islamic BankingĢ015, the Supreme Court of Appeal (SCA) handed down a judgment in 3 All SA 32 (SCA) and the Enforcement of Islamic Banking Law Lodhi 5 Properties Investments CC v FirstRand Bank Limited 3 All SA 32 (SCA) and the Enforcement of Islamic Banking Law in South Africa (Vol 20) PER 18ĥ Properties Investments CC v FirstRand Bank Limited Potchefstroom Electronic Law Journal // Potchefstroomse Elektroniese Regsblad >

Potchefstroom Electronic Law Journal // Potchefstroomse Elektroniese Regsblad