Abstract
The law lays down rules that govern private disputes, self-help actions or open-conflicts that may occur in the society. Here, courts, tribunals, arbitration and other dispute resolution forums are the main secular institutions in dispensing just resolutions in a society. As important as the court proceedings, Alternative Dispute Resolution (ADR) process is neutral, it is like a judge who served as the finder of fact and decision maker for the parties involved. By adapting the ADR methods in resolving the disputes relating to Islamic financial products, this method will able to fulfil with the demands on Islamic financial markets in Malaysia. As the highest law of the land places Islam, the religion associated with one of the main ethnicity, as the official religion of the nation and allowed the duality of economic system, in particular banking system, in which conventional banking system exists side-by-side with the Sharia-compliant, Islamic banking. This paper will reviewing the pertinent literature on the development of Islamic banking cases, the Alternative dispute resolution methods on Islamic banking and its contributions to Malaysian society regardless of ethnicity and religion. The discussion in this paper therefore will be directed towards highlighting the alternative dispute resolution methods on Islamic banking and its implication to enhance the application of Islamic banking laws to consumers regardless of ethnicity and religion, in order to maintaining fairness and justice in a multi-ethnic society.
Highlights
The objective of dispute resolution is to solve the dispute between the parties who seek justice [1]
‘Alternative dispute resolution’ or Alternative Dispute Resolution (ADR) is described as an alternative way other than through a court case to resolve the problems of the parties involved
One of the alternative dispute resolution method which had been adapted with the court proceeding (Sulh method) had been proven and accepted as practice to achieve solution for family cases in the courts of law in several states in Malaysia
Summary
Each view of the four sects have different views in regards to alternative dispute resolution methods, especially methods of arbitration. In Hambali, the alternative dispute resolution methods such as arbitration rules have the same effect as the process of a court proceedings. Often methods of conflict resolution in the community involving court institution, the concept of alternative dispute resolution (ADR) has long been practiced in the community. As stated by Syed Khalid Rashid, traditionally the Chinese people using nonlitigation settlement [7] Their method is to negotiate peace (Youhao Xieshang which means friendly consultation). One of the alternative dispute resolution method which had been adapted with the court proceeding (Sulh method) had been proven and accepted as practice to achieve solution for family cases in the courts of law in several states in Malaysia
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