Sulh as an Alternative Dispute Resolution Mechanism for Islamic Banking and Financial Disputes in Malaysia
Nur Khalidah Dahlan
Faculty of Law, Universiti Kebangsaan Malaysia
Many disputes, probably the majority, are never resolved but are only allowed by the unilateral action of the party exercising power. A key concern in such civil cases is to determine how satisfied clients feel with the third parties, which are the lawyers and judges with whom they had dealt with and the various dispute resolution forums used to settle their problem. In view of the fact that the business society has come to regard arbitration as their favoured means of catering for dispute resolution, lawyers have given considerable thought to provide an appropriate legal setting within which arbitration can operate and allow trade and commerce to flourish. Alternative dispute resolution (ADR) is not new in the legal system, but it has received tremendous impetus as means of dealing with the huge increase in different types of disputes over a range of matters. Even though ADR is still not practised as a whole, most civil cases now recognize that it is wrong to regard formal adjudication as the only norm for dispute resolution. Hence, this paper suggests that the Islamic ADR method should also be adopted in Islamic finance disputes. It is a loss for everyone if we do not explore the effectiveness and uniqueness of the Islamic ADR due to the Islamic globalisation worldwide. This is to create more opportunities in the ADR field to develop more effective settlements for Islamic finance disputes.
Keywords: Alternative dispute resolution, Sulh, Islamic finance