Tag Archives: Maple Amalgamated Sdn Bhd v Bank Pertanian Malaysia Bhd

Interpretation of Statute & Contract: Apex Court favours “Commerciality” over “Illegality”

In Maple Amalgamated Sdn Bhd v Bank Pertanian Malaysia Bhd , the single specified issue before the Federal Court of Malaysia was whether an Islamic banking facility known as Bai Bithaman Ajil transaction is invalid for violating section 214A of the National Land Code. In dealing with that specific issue regarding BBA, the Federal Court also made broader pronouncements on the applicable legal principles when the Court is asked to invalidate a commercial transaction. The latter would have a much wider implication in the commercial world.