Malaysia legislation
Section 12A
Seksyen 12A
(1)
Every judgment debt arising from financial transactions in accordance with Shariah shall carry a late payment charge calculated from the date of judgment until the judgment debt is fully satisfied at the rate provided under Order 42, rule 12
and subject to the following conditions:
(a)
the judgment creditor shall only be entitled to ta’widh as a result of late payment;
P.U. (A) 205 194
(b)
the amount of late payment charge shall not exceed the outstanding principal amount; and
(c)
if the amount of ta’widh is less than the amount of late payment charge, the balance shall be channelled to any charitable organizations as determined by the Shariah Advisory Council.
(2)
For the purpose of this rule—
(a)
“Shariah Advisory Council” means the Shariah Advisory Council established under the Central Bank of Malaysia Act 2009 [Act 701]
and the Capital Markets and Services Act 2007 [Act 671]; and
(b)
“ta’widh” means compensation for actual loss and shall be calculated at the rate determined by the Shariah Advisory Council.
Setting aside or varying judgment and orders (O. 42, r. 13)