Downloaded from: www.imranhosein.org 1

Islamic Spirituality - The Forgotten Path

A lecture delivered by Maulana Imran Nazar Hosein
at the Maulana Abd al-Aleem Siddiqui Masjid, Singapore

Transcribed by Irshad Soofi

Downloaded from: www.imranhosein.org 2

Allah Ψ tells us in the Holy Qur'aan in the 29th Sura, al-Ankabuut (The Spider):
in Verse69:

And those who strive in Our path, We will certainly guide them to Our Paths: for

verily Allah Ψ is with the righteous
We begin in Allah Ψ’s Blessed Name, we praise Him, we glorify Him and we
beseech Him this night for His guidance, blessings and protection as we attempt
to address the subject, Islamic Spirituality, the Forgotten Path. We pray for peace
and blessings for all His Noble Messengers and in particular, on the last of them
all the Blessed Prophet Muhammad ε.

Our subject tonight is Spirituality and our subject tomorrow night; Insha Allah
will be Dajjal, The False Messiah. Yet we begin tonight with Dajjal to show the
link between tonight’s talk and tomorrow night. The Prophet ε said1,’ Every
prophet of Allah Ψ has warned his people about Dajjal but I am going to tell you
something about him which none has said before me. Dajjal sees with his left eye.
He is blind in the right eye. It looks like a bulging grape. But your Lord is not one-
eyed. Between Dajjal’s eyes on his forehead is written ‘kafir’ – kaaf; fa; ra. Every
Mu’min (every believer whose heart Islam has entered and so becoming imaan)
will be able to read - recognize kafir. [Whether that Mu’min is khatib i.e. he can
read or write or ghair katib i.e. he cannot read or write]2. This is by far the most
important hadith on Dajjal, since this information was saved until the very last.
No more prophets after Muhammad ε. What is the implication? If the mu’min can
read it means that Abu Lahab can’t read. Abu Lahab has eyes, so how come he
cannot read but Hazrath Ali τ, can read? Is Ali τ reading with these (physical)
eyes? Do we have any other eyes besides these eyes? The University of Singapore,

1 Al Jaami` Al Saheeh. Version 1.07 - By Imam Al Bukhari Volume 4: 290.2: Narrated Ibn `Umar:
2 “This is because Allaah causes people to understand something when looking at it, as He wills and when He wills. So the believer
will see this with his insight, even if he is illiterate, and the kaafir will not be able to see it, even if he is literate. By the same token,
the believer will see with his insight evidence that the kaafir will not see. Allaah will enable the believer to understand without him
being literate, because at that time, extraordinary things will be happening.” (Fath al-Baari by Ibn Hajar al-‘Asqallaani, 13/100)

Downloaded from: www.imranhosein.org 3

The United Nations says and Governments around the world say, No! We have
no other eyes, besides these (physical) eyes. We have no other ears, besides these
(physical) ears. We have no other means of acquiring knowledge other than
through the senses; through observation and through the rational faculties. But,
the Holy Qur’aan says, yes! In addition to these eyes we have internal eyes. In
addition to these ears we have internal ears. In addition to our external faculties
for acquiring knowledge, we can also acquire knowledge internally. E.g. In Sura
Hajj [Sura 22, Verse 46], Allah Ψ addresses a people who are like Uncle Sam, are
internally dead. He Ψ says,

Will they not travel through the earth?

So that perhaps, perchance, (by traveling through the earth) their dead hearts

might come alive
They have PhD’s from Harvard but their hearts are dead. Multi-millionaire, with
a dozen Mercedes Benz, but the heart is dead. Travel through the earth and see
the signs of Allah Ψ on the earth. Perchance by seeing the signs of Allah Ψ, your
dead heart might come alive. When the dead heart comes alive, then the heart
can understand what the intellect and reason could not understand.

When the heart comes alive, it can hear what otherwise could not be heard.

Truly, its not these eyes which are blind

Downloaded from: www.imranhosein.org 4

What is blind is the heart, which is inside the chest.

So the heart can see. In addition to this (physical) eye, we also have this
(internal) eye. Now it is possible for us to understand the hadith.

Dajjal see with one eye, his left eye. The left eye symbolizes his external capacity
for sight. Dajjal is blind in the right eye; indicating that Dajjal is internally blind.
Therefore all those that follow Dajjal will all be internally blind. What is the price
that we pay if we are internally blind? PhD from university of Singapore! But
inside, blind. What is the price that we pay? Allah Ψ declares that huge numbers
of people are condemned for the hellfire. What did they do that they are
condemned for the hellfire?
 [The 7th Sura, al-Araaf [The Heights], Verse 179]

They have hearts but rthey cannot understand. They have eyes but they cannot

see. They have ears but they cannot hear.
The people who are internally blind are a people who in the age of Dajjal are
destined for the hellfire. How does Allah Ψ describe such people? He Ψ says:
[The 7th Sura, al-Araaf [The Heights], Verse 179]

They are just like cattle

What! With a PhD? Yes! They are just like cattle.

Rather! They are more misguided than cattle.

Downloaded from: www.imranhosein.org 5

These are the ones that are truly heedless.

Heedless of the signs of Allah Ψ!

This is our introduction to Spirituality in Islam. Spirituality is the path through
which the heart comes alive. When the heart comes alive, then it can see; and
hear; and understand that which rationality can never penetrate. Allah Ψ sent
down in the Holy Qur’aan the 18th Sura, Kahf (The Cave). The Holy Prophet ε
identified this Sura as the only Sura in the Holy Qur’aan which protects from
Dajjal. Recite the first ten verses of Sura, Kahf over Dajjal and he won’t be able to
harm you. He also said something else about Sura, Kahf. You know these
(physical) eyes can’t see unless there is light. Similarly this eye (spiritual eye of the
heart) cant see without Nur. You can’t buy nur in the stock market. Where does
the Nur come from?
[The 24th Sura, al-Nur (The Light), Verse 35]

Allah Ψ encompasses the totality of the Nur in the Heaven and the Earth

You cannot get nur other than from Allah Ψ. Not even from the Security Council
of the UN. So we need nur, if we are to be protected from Dajjal; and therefore to
be able to see with the internal eye, -because he does not see with the internal
eye-.  He ε said recite Sura Kahf on a Friday3 and it will deliver to you nur from
the heavens to the earth and that nur will stay with you until the next Friday. So
now I ask you to raise your hands. Let me see how many people have recited Sura
al-Kahf last Friday. What happened to your hands? Something wrong? This is the
dearest Masjid in the whole of Singapore for me. Fourteen years ago when I came
to Singapore for the first time I came as a guest of this Masjid. I lectured here first
and I slept at the room at the back. So this Masjid is the dearest of all. It is named

3 The Holy Prophet ε     said: “Whoever would read Sura Al-Kahf on Friday it would provide him of light for the duration between
the two Fridays”. It was reported by 'Al-Hakim, page 564 of volume 1 who said that it was of sound ascription.

Downloaded from: www.imranhosein.org 6

after Maulana Abd al-Aleem Siddiqui τ. Do you know who he was? My teacher,
my shaykh, my murshid was Maulana Dr. Muhammad Fazlur Rahman Ansari τ
whose masterpiece, the two volumes The Qur’aanic Foundations and Structure of
Muslim Society is now available. His teacher, his shaykh, his murshid was Maulana
Abd al-Aleem Siddiqui τ. So I am the second generation from him. So next time I
come I want to see your hands raised that you are now reciting Sura al-Kahf every
Friday without failure.

In Sura al-Kahf Allah Ψ gives us wonderful instruction on the consequences of
not having the capacity to see with the internal eye. He takes Musa υ the Nabi
who was sent to Bani Israel, those who say that they are the chosen people of
Allah Ψ, the elite, the select whilst the rest of mankind is gentile. According to
Sahih Bukhari, Musa υ has delivered a Khutbah at Sinai. Someone came to him
and said, ‘O Musa! What a wonderful Khutbah. You must be the most learned
man in the world.’ What Musa υ should have replied was, ‘Praise is due to Allah
Ψ!’  What Musa υ should have replied was, ‘Beyond any man is He who is all
learned.’ But he didn’t say that. He said what the PhD From the university says,
‘yes, I am the most learned man in the world.’ This is what happens when you
secularize knowledge. You take Allah Ψ out of the process of learning. ‘He has
nothing to do with it. I am the expert in my field. I am the top scholar in my field.’
He says, ‘yes, I am the most learned man in the world.’  When you do that and
don’t recognize Allah Ψ as the source of all knowledge, then He cuts off your
internal sight. So Musa υ temporarily is without internal sight. Allah Ψ then says
to him, ‘There is a servant of mine more learned than you are, Musa.’ So Musa υ,
says, ‘I would like to meet him.’ Then Allah Ψ gives him instructions to take a
fish, put it in a basket and travel in the direction where the two seas meet-
majmaul bahrain. ‘When the fish jumps out of the basket, there you shall meet
him.’ This is a rather humiliating thing for the most learned man in the world to
do. Allah Ψ cuts him down. ‘Learn humility if you really are learned. The sign of
knowledge is humility.’ So he goes and eventually, he meets him. He is called
Khidr υ, which means ‘green’. This is a man more learned than Musa υ. There is a
difference between his knowledge and this knowledge. This knowledge can grow
old and stale and be superseded by other knowledge and so become obsolete. Like

Downloaded from: www.imranhosein.org 7

the computer you had ten years ago, obsolete now.  But this knowledge does not
grow obsolete, always green always relevant, always fresh. Like a fresh breeze, this
is the knowledge of Khidr υ that’s why he is Mr. Green.

Musa υ asks, ‘Can I accompany you so that I may learn from you?’ Very difficult!
Really difficult for a one eyed man to learn from a two eyed man. The on-eyed
man has a PhD, so he believes he knows all. Hazrath Khidr υ says, ‘You are not
going to be able to show patience with me.’ How correct is that answer; unto this
day; but he keeps on insisting, ‘I want to go with you.’ He is allowed to accompany
Khidr υ, on condition he does not ask questions unless Khidr υ explains. He is cut
down. So they travel and come to the sea or the water and there they board a
boat. Sahih Bukhari tells us a nice story about what happened on the boat. A little
bird came and sat on the sail of the boat and then flew down dipped its beak into
the water and flew back up with one drop of water inside the mouth. Khidr υ
points to the bird and says, ‘Musa υ, the knowledge that you have plus the
knowledge that I have when compared to Allah Ψ‘s knowledge is like the one
drop of water in the beak of the bird. That is the first lesson to teach a one eyed
man. Then three events occur:

1. Khidr υ breaks the bottom of the boat. Musa υ is annoyed and says, ‘Why
do you do such a wicked thing?’

2. When they get off the boat they came across a boy whom Khidr υ killed.
Hazrath Musa υ is now more than just angry because he remembers that he
accidentally killed a man in Egypt and what suffering he suffered because of
this. So being very angry he demands an explanation from Hazrath Khidr υ
as to why he slew an innocent boy.

3. Then they came to a town which was very inhospitable. There was a wall
which someone had constructed and it was crumbling. Hazrath Khidr υ pays
for the wall to be rebuilt. Hazrath Musa υ cannot understand. ‘Why would
you pay to do this in a town that doesn’t even show elementary hospitality?
You can at least demand a refund of the amount you have spent?’ says
Hazrath Musa υ.

What is important about these three events is that on each occasion Hazrath
Musa υ formed his judgment based on external observation and rational analysis.

Downloaded from: www.imranhosein.org 8

And yet on all three occasions he was wrong. Suratul Kahf is knocking at your
hearts. Warning you! That in the age of Dajjal if you depend only on your
external observation and rational investigations to formulate your judgment, you
will be wrong because Dajjal comes with two things: a river and a fire. His river is
a fire and his fire is the cool waters of the river. In other words, appearance and
reality will be completely different from each other in the age of Dajjal. It looks
good but it’s dangerous. It looks bad but the reality is different it is good. In the
age of Dajjal appearance and reality are going to be completely different from each
other so if judgment is based on external observation and rational enquiry alone
you are going to be wrong and will pay a terrible price for your wrong judgment.
Hazrath Khidr υ explains saying, “What I did with this boat appeared to you to be
bad but was actually good. There is a king, a government that is coming seizing
people’s property and they are going to be seizing this boat, thus by damaging the
boat, I saved the boat so when the king is gone the poor fishermen can repair their
boat. It looked bad to you but actually I did them a favour. This little boy! You
sometimes plant a seed and you get a rose. Sometimes you plant a seed and you
get a scorpion. So when you sleep with your wife make dua, ‘O Allah Ψ ! This
seed which I plant I pray it may grow into something good and beautiful.’ So this
child was destined to grow into such a Devil that his parent’s faith would have
been threatened. By killing the child and praying to Allah Ψ to send them
another child who would be coolness for their eyes (kurratu aiyun) I did something
good for them but you couldn’t see that. As regards the wall: In this town there
was a believer (mu’min), who had two little children, he was dying he had some
money and he couldn’t find a single person he could trust to keep the money until
his children grow. So he had to dig a hole and bury the money. Having buried the
money he then built a wall and prayed to Allah Ψ that He would guide them to
the money. When I found the wall crumbling, Allah Ψ instructed me to rebuild
it.’

So knowledge, instructions and guidance can come from above. What we are
introduced to here is a branch of knowledge that is called epistemology.  What is
knowledge? Is it possible for us to acquire knowledge and how is it acquired? The
Holy Qur’aan teaches us: Did you acquire knowledge? That knowledge wherein

Downloaded from: www.imranhosein.org 9

there is no doubt never becomes obsolete like the computer from ten years ago.
[The Holy Qur’aan says in the 102nd Sura, Takaathur (The Piling up):

If you had that knowledge that is borne of certainty

Knowledge that comes directly from Allah Ψ

Ye will be able to see the Hell-fire!

Knowledge is possible, but it does not only come this way (learned by the brain), it
also comes this way (revealed to the heart). Remember that in addition to
knowledge externally derived, it is also internally, intuitively, spiritually acquired.

The companions were sitting; talking amongst themselves in the Masjid and the
Holy Prophet ε came and sat with them. This was after the farewell Hajj when
they had returned to Madinah and so he has only 81 days left in his blessed life.
This is the last part of his life. Suddenly a stranger entered into the Masjid
dressed all in white spotlessly clean with no dust upon him, with black hair. He
was not a traveler, yet no-one could recognize who he was. This is mystery,
suspense as to who is this man. He came and sat directly opposite the Holy
Prophet ε and asked five questions as if he is a school-master and the Holy
Prophet ε replies. Every time the Holy Prophet ε would reply, this man would say,
‘Your answer is correct.’ Thereafter he got up and left as suddenly and as
strangely as he had come. The Holy Prophet ε then asked, ‘Do you know who he
was?’ They answered, ‘We don’t! Allah Ψ and His Messenger know best.’  The
Holy Prophet ε said, ‘This was Jibraeel υ.’ The Angel Jibraeel υ appeared in front
of everybody as a human being, for all to see. The first time, the only time, the
last time in history that it happened. It never happened before and it will not
happen again. This is history, if you forget this you pay a price for it. The
questions were: What is Islam? What is Imaan? And then came, What is al-
Ihsaan? I wish that they had not invented the word Sufism. Really! There was no

Downloaded from: www.imranhosein.org 10

need for it. I wish that the term Tasawwuf had never been invented. My life
would have been easier. Whoever did it, whatever the reason why he did it, did
something which should not have been done. Because Allah Ψ has Himself given
us the word and the Holy Qur’aan tells us [in the 29th Sura, al-Ankabuut (The
Spider): in Verse69]:

Those who strive and struggle and make Jihad in Us, to reach Us

We will guide them to the paths, which lead to Us

And Allah Ψ is ever with those who struggle for al-Ihsaan

And the Holy Prophet ε is asked as to what al-Ihsaan. It is there in the hadith and
it is there in the Holy Qur’aan. Al-Ihsaan is Tasawwuf. There is no difference
between the two. Why then did we need the term tasawwuf? So that people could
accuse us of bid’ah and haraam?  I agree with Dr. Israar Ahmad of Pakistan, the
ameer of Tanzeem e Islami who has argued that we should use the terminology
given by Allah Ψ and His Messenger.

Al-Ihsaan: The Holy Prophet ε   replied and he said of al-ihsaan: ‘An tahbudallaha
ka annaka tara.’ [That you should worship Allah Ψ: That you should serve Allah
Ψ as though you are seeing Him]. Fa illam takun tara  [For if you cannot see Him]
fa innahu yara [surely He is seeing you]. When Musa υ went up the mountain,
Mount Sinai, did he not ask? I told you last night, the test of true love in the
heart; if you say you have love in your heart, then you would long, with a great,
great, great longing to see the face of the one you love. If you had to wait a
thousand years, you will wait even for a glimpse of the one you love. If you had to
walk a thousand miles, you would do it gladly just even for a glimpse of the face of
the one you love. This is love. So Musa υ, says: [the 7th Sura, al-Araaf, Verse 143]

Downloaded from: www.imranhosein.org 11

Show me your face, I want to see You

This is love.

Allah Ψ replies and says:

No Musa υ! You can’t see Me.

Meaning: ‘Not with these eyes! You can’t see Me.’

But the companions of the Holy Prophet ε they asked, ‘O Messenger! Will we be
able to see Allah Ψ on the last day, the Day of Judgment?’ He responded and he
asked, ‘Do you have any difficulty in seeing the sun when it is mid-day?’ They
said, ‘No problem we can see it.’ He asked, ‘Do you have any difficulty in seeing
the moon when it is full moon?’  They said, ‘No!’ He said, ‘that’s how you are
going to see your Lord on the Last Day.’  Allah Ψ says, ‘You can’t see Me’ and the
Holy Prophet ε   says you will see Him. Now we can understand that there is no
contradiction here. The meaning is, ‘You can’t see Me with these (physical) eyes.’
Do we have any other eyes besides these eyes? The Holy Qur’aan says, ‘Yes! The
heart can see’ So it is with the heart that we will see Allah Ψ on the last day. How
can the heart see? In order for the heart to see it must first embrace Islam, the
truth. Only the truth will deliver internal sight. After you have embraced the
truth; the truth must travel from your lips and enter the heart. Then it is called
imaan. In order for it to enter into the heart, we have to live the truth with
sincerity. We will be tested, we must pass the test. The only way I can buy a
house, or flat is to take a bank loan on interest. There is no other way. You lie.
You should be ashamed of yourself for lying, when you say there is no other way.
When the angels are taking such people into the hell-fire and the angels ask[4th
Sura, an-Nisaa, verse 97], ‘Fi ma kuntum.’ ‘What went wrong? How come you
landed in this mess? We are taking you into the hell-fire.’ Then you reply, ‘There
was no other choice for us. There was no other way we could buy a flat except

Downloaded from: www.imranhosein.org 12

with a bank loan on interest.’ Then the angels ask as mentioned in the 4th Sura,
an-Nisaa in verse 97:

Was Allah Ψ's earth not wide?

Was Allah Ψ's earth not wide that you could have searched somewhere on Allah
Ψ’s earth where you could live without disgracing Him and betraying Him? Into
the hell-fire! So you will be tested. Only when you pass the test will Allah Ψ put
the truth in the heart.

In order for the heart to accommodate the truth, the heart must now be cleansed
and purified. This is called, Tazkiyah or internal purification. After the heart has
been purified and the heart is turned to Allah Ψ then Allah Ψ will put nur into
the heart. Now you can see what other wise you could never see. The 24th Sura,
an-Nur [The Light], verse 35 is the most important verse of the Holy Qur’aan
teaching us the methodology for spiritual growth. Teaching us the way through
which we can learn to see with the internal eye when we are spiritually mobilized.

Allah Ψ is the Light of the heavens and the earth.

The example by which you could understand His light is that of a niche in the
wall where you used to put a lamp before the electricity came.

In that niche in the wall there is a lamp. Abdullah ibn Abbas τ said that the Holy
Prophet ε said that that mishkaat or niche is not in the wall. Its here in the chest
and in that space within the chest there is a lamp. I can’t do it now but when you

Downloaded from: www.imranhosein.org 13

teach this lesson, you turn off the lights and you light an oil lamp. All the children
will look at the lamp and they will never forget that lesson for the rest of their
lives. This is the way to teach it.

The lamp has a glass around it.

The glass is so spotlessly clean that it glitters like a shining star.

So the process of internal purification is to look to see the stains on the glass
within your own heart and start to cleanse them, purify them and wash them out.
The process of washing away the stains on the glass is first of all to recognize that
we have committed sin. Secondly, to turn away from the sin; this is called tauba.
When you turn you must turn with sincerity. Don’t turn in the day and turn back
at night. [The 66th Sura, at-Tahreem (the Prohibition, verse 8]:

Turn away from the sin. Turn to Allah Ψ and do it with sincerity

Having turned away from this sin, there must be regret in your heart for what you
did. [Nafsul lawwama reproaching]: ‘How could I ever have done that? I am
ashamed of myself. O My Lord! Kindly put a cover over the sins I have committed
because I am ashamed of them.’ Weep for the things you did yesterday. Now you
must commit yourself, never again to return to them. When you give your word,
keep it. Then one last thing remains. You must spend the rest of your life teaching
others, helping others, guiding others, warning others, that they do not walk on
that path of sin. If you do that, then Allah Ψ is prepared to forgive all sins. He
wipes it away and the glass becomes clean. Sometimes we think the stain is gone,
like in the case of lust. In fact it is not gone and still more work remains. How will
I know that the stain remains? Dreams! In my dream I will commit the sin again.
So that dream is telling me that the stain is still there so go back and wash. After

Downloaded from: www.imranhosein.org 14

the glass has been cleaned and the stains have been removed then the Holy
Prophet ε   said that these hearts they catch rust. The dust accumulates. So in
addition to cleaning you also have to keep on constantly polishing. What is the
polish for the glass? The Holy Prophet ε   said the polish is zikr. What is zikr?  Zikr
has its external forms in which you recite mechanically. The real zikr is internal.
Zikr is remembrance. Remembrance is most of all, remembrance of the one you
love. When you truly love someone, then that love will go with you wherever you
go.  Yes! That love is there in your heart at all times. You were standing and its
there. You sit down its there. You lie down its still there. Whenever the memory
of the beloved enters into the heart, it’s like a fragrance (khushbu) coming into the
heart. Whenever the memory of the beloved enters into the heart you are
transported into another world. This is zikr. ‘Do you love Me?’  Allah Ψ asks. ‘Do
you love Me as much as your dog loves you? Are you as faithful to Me as your
horse is faithful to you? Do you serve Me as well as they serve you? Do you show
as much courage doing My work as they do in doing your work? [The 100th Sura,
al-aadiyaat (Those That Run), verses 1-6]:

The horses that you love so much; they run so fast they’re panting. When
they run at night their hooves hit on the stone and sparks fly. When the

morning comes and the fresh breeze enters into their lungs, they run with a
new spurt of speed. When they face the enemy they dash into the very center

of the ranks of the enemy

‘Do you love Me as much as much as they love you? Do you serve Me the way
they serve you? Are you as loyal to Me as they are loyal to you?

Truly Man is, to his Lord, ungrateful;

Downloaded from: www.imranhosein.org 15

‘No you don’t! You are ever negligent of your relationship with Me’ Allah Ψ is
saying. ‘Your dog loves you more than you love Me and your horse is more faithful
to you than you are to Me.’ Who are those that will live for Allah Ψ tonight. Only
those that live for Allah Ψ, only they will die for Allah Ψ. They call that
fundamentalism and terrorism. As the love for Allah Ψ enters into the heart and
the servant sets his sight, saying, ‘This is my goal. I am twenty years of age, come
back and see me after forty years and you will still see me walking on this same
road, going in the same direction.’ Consistency in his life! This is my goal and
mission. Zikr is what delivers that. The zikr polishes the glass. The verse of the
Holy Qur’aan continues that this lamp has oil which comes from the blessed olive
tree which is [The 24th Sura, an-Nur [The Light], verse 35}:

It belongs neither to the east nor to the west for it stands firmly for Allah Ψ.
It is [The 6th Sura, al-Anaam[The Cattle], verse 162}:

Say: "Truly, my prayer and my service of sacrifice, my life and my death, are

(all) for Allah, the Cherisher of the Worlds;
When you have a person who lives for Allah Ψ like that and who works, struggles
and sacrifices in the way of Allah Ψ then you produce oil. That oil is pure oil.
[The 24th Sura, an-Nur [The Light], verse 35}:

The oil itself gets ablaze although the fire does not touch it

This is different from the oil you put in your motor vehicle. This one glows
without fire touching it. Can you imagine what is going to happen when fire
touches it? You will not grow spiritually until fire touches you. When fire touches
you and the oil is already there inside of you, then you attain light.

Downloaded from: www.imranhosein.org 16

Light upon light

This light does not come from the stock-market, Allah Ψ gives it

Allah Ψ guides towards His light whomever He wills

Allah Ψ is presenting these lessons to mankind that they may reflect over it

And Allah Ψ has knowledge of all things

Therefore the nur is for ilm. Thus the essential goal of the spiritual quest is
knowledge which comes directly from Allah Ψ. When you have that knowledge
or the capacity for internal, intuitive, spiritual knowledge; what do you use it for?
How important is it? Where do you apply it? This is the last part of the
epistemological4 lesson.
The stranger asked question four. When will the last day come? The Holy Prophet
ε replied, ‘The one who is being questioned has no more knowledge than the one
who is questioning.’ Next question please! That’s the way to respond to anybody
who wants to engage us on this subject. Only Allah Ψ knows when the world will
come to an end. None of us knows. I said in my previous lectures that by my
calculation using the hadith and external observation that I expect sometime
within the next fifty years. The Muslim army will come and destroy the state of
Israel. One fellow responded to me from Pakistan saying, ‘Shaykh, I can’t wait for
fifty years that is too long.’ This next fifty years is going to be the worst in our

4 Epistemology: the branch of philosophy that studies the nature of knowledge, in particular its foundations, scope, and validity

Downloaded from: www.imranhosein.org 17

history. The greatest suffering and oppression will come this next fifty years. The
wickedest of the wickedest of the people will be the rulers of the people.
Mercilessly and shamelessly they will be attacking Islam whilst hiding behind a
curtain called terrorism. So watch it! If you want to be a part time Muslim, no
problem, but the minute you want to be a true servant of Allah Ψ they’re coming
after you.  When they come after you, you had better have protection from Allah
Ψ. If you are not reciting Suratul Kahf every Friday they are going to cut you
down. While it is only Allah Ψ who knows when the Last Day will come, the Holy
Qur’aan tells us that the heart of the believer always feels that it is close while the
disbeliever always thinks its far away.

Then came question five which teaches us the application of spirituality of al-
ihsaan. How do you apply it? What is its practical utility? The stranger asked,
‘What are the signs of the Last Day?’ The Holy Prophet ε   replied and he said:

1. ‘You will find a naked, barefooted shepherd – [meaning people who have
the brains; the intellectual acumen of naked, barefooted shepherds] –
competing with each other to build high rise buildings.’

I have the tallest building in the world. They have the intellectual acumen naked,
barefooted shepherds because they measure progress in this way. Hen we have
built the tallest building, the grandest airport in the world and all these PR
projects that make our place look like heaven we have achieved progress. So they
measure progress with PR projects. Allah Ψ says [in the 49th Sura, al-Hujeraat
[The Inner Chambers] in verse 13]:

Indeed the more honourable among you, in the sight of Allah, is one who is

more pious among you
You shouldn’t measure progress with high rise buildings but rather measure
progress with how much fear of Allah Ψ is there in the heart. You have made no
progress. You may have built the tallest building but you have no fear of Allah Ψ
in your heart. So you and all those that stand with you represent no progress at
all. He is underneath a mango tree, a shoemaker making shoes but in his heart

Downloaded from: www.imranhosein.org 18

there is the fear of his Lord, so he is superior to you. When you see a world
acclaiming those who build these high rise buildings, the tallest building in the
world and the world considers that to be progress and the world looks down upon
his one who has the fear of Allah Ψ in his heart, you know that is a major sign of
the Last Day. How many can see it today and how many are fooled? Then he
came to the last one:

2. He said, ‘You will find that the slave woman will give birth to her mistress.’
How can a slave woman give birth to her mistress? Shall I leave you to think
about it until tomorrow night? The only one who will be able to see that sign of
Allah Ψ, when it comes true in the world- a major sign of the Last Day- is not the
one who has a PhD from al-Azhar University but inside has nothing. It is the one
who sees with two eyes, who has knowledge externally derived and internally
derived. This is the most learned of all men. So when Musa υ asked, ‘where can I
meet him?’ and Allah Ψ said, ‘Go and you will find him at the place at which the
two oceans meet- majmaul Bahrain- . The commentator of the Holy Qur’aan,
Baidawi5, is the only one who has penetrated the meaning of it. He said that the
two oceans are: the ocean of knowledge externally acquired and the ocean of
knowledge internally acquired. When these two oceans of knowledge combine
together in one man, harmoniously, is integrated together, you have the most
learned of all men. Such a man was Maulana Muhammad Abd al-Aleem Siddiqui
τ, after whom this Masjid was named, and such a man was his student, and my
teacher, Maulana Dr. Muhammad Fazlur Rahman Ansari τ. We are just little
candles glowing from the light which came from these great scholars of Islam. It is
when you use these two oceans to combine together that you can crack it, ‘a slave
woman giving birth to her mistress.’

It is already 10 pm so I am going to be very brief. In order to understand this you
need to recognize two things which come from Dajjal and with which he attacks
to try and take control of mankind. One, the Holy Prophet ε   said that, ‘The Age
of Dajjal would be the age [Kasaratul riba]-when riba (interest and usury) will take

5 BAIDAWI ('Abdallah ibn 'Umar al-Baidawi) Muslim critic, was born in Fars, where his father was chief judge, in the time of the
Atabek ruler Abu Bakr ibn Sa'd (1226-60). He himself became judge in Shiraz, and died in Tabriz about 1286. His chief work is the
commentary on the Koran entitled The Secrets of Revelation and The Secrets of Interpretation (Asrar ut-tanzil wa Asrar ut-ta'wil).

Downloaded from: www.imranhosein.org 19

control of the world. What happens when riba takes control of an economy is that
the rich will remain permanently rich and the poor will remain permanently poor.
Wealth will no longer circulate. The rich will grow richer and the poor will reach
to the depths of destitution. In other words another age of slavery descends upon
mankind. That has already come. The Ulama of Islam have been eating halva; it
has already come upon us.  Nobody teaches the subject about the prohibition of
riba. I had the good fortune to live in New York, the capital city of riba, and there
I was able to put book knowledge to bear upon the real economy in the world
today. In addition I was blessed to study western economics; International
Monetary Economics for example in Europe.  This was how Allah Ψ blessed me
with some understanding of the subject; that’s why you will find my book outside,
The Prohibition of Riba in the Qur’aan and Sunnah. It took me four years to write
that book. When an economy is based on Riba then wealth will no longer
circulate. Its like mankind traveling on a ship with 15 % of the population of the
world traveling first class, with permanent first class tickets having the best
drinking water, food, servants and luxury. The other 85 % are down in the hold of
the ship living in squalor, misery, suffering and destitution, falling ill and dying
like flies. So they are slaves down there. That’s Indonesia today. That woman
therefore is a slave woman down in the hold of the ship. She is the one we are
talking about.

In the age of Dajjal, not only do we have riba, but something else. ‘The last people
to come out to Dajjal will be women,’ said the Holy Prophet ε. Dajjal will weave
such a web, of brainwashing of women that a man will have to return to his home
and tie down his wife, daughter and sister to protect and preserve them from
Dajjal. They’re brainwashed! Nothing you could say to them will change their
minds. Brainwashed! This is the modern feminist movement. What does the
modern feminist movement want to do? The modern feminist movement
challenges the notion that men and women are functionally different. That man
has different basic functions from women. The modern feminist movement wants
to remove the barriers. Anything a man does a women should have the freedom
to do it. So women embrace the functional role of men in the feminist revolution.
The Woman down in the hold is too poor to do it, the ones who do it are the

Downloaded from: www.imranhosein.org 20

elite. They’re rich! These are the first to embrace the functional role of men, the
women traveling first-class. What happens when women go out to work, the way
men do. At 7 am she is dressed to go to work the way he is. She comes back home
in the evening 6 to 7 pm the same way that he does. When she dresses to go to
work, this is not going to a party; this is going to work so she has to dress in
working clothes.  So her dress becomes masculine. When she gets into a position
of authority in work, has people working under her, then she has to shed her
shyness and talk like a man; behave like a man; so that she can command respect.
But in the Holy Qur’aan Allah Ψ describes women differently. Musa υ, remember
how he drew the water for the girls. Then one of them came back. Her father sent
her to call him. Now she has to approach this man. A women approaching a man,
and Allah Ψ describes in the Holy Qur’aan how shy and bashful she was that she
has to approach a man. Uncle Sam’s daughter isn’t shy! They behave, dress and
talk like men. Eventually their faces begin to look like faces of men. The softness,
shyness and bashfulness is gone. As women assume the functional role of men,
they begin to lose their femininity. But Allah Ψ describes the male and the female
by using the analogy of the night and the day. Listen to Him! [The 92nd Sura, al-
Layl [The Night], verses ]

He takes an oath by the night and that which it shrouds and covers so
mysteriously, so beautifully

He takes an oath by the day and its bright powerful light

That, in the same way that Allah Ψ has created the night and the day; so to, did
He create the male and the female.

Downloaded from: www.imranhosein.org 21

Allah Ψ wants the day to be day and He wants the night to be night. When
the day is day and the night is night, do you notice the attraction? How
much they are attracted to each other! When the day is coming to an end
and it is approaching the night do you notice the anxiety and the
enthusiasm? How the day paints the sky in so many colours. Are you blind,
don’t you see it? When the day reaches the night, the day plunges itself into
the arms of the night. A rush of a plunge, into the arms of the night! It
happens every sunset. Then the day spends the night with the night. There
is a time for rest, sleep, love, worship and meditation; and then the time
comes to say goodbye. The day must say goodbye to the night but the night
doesn’t want the day to go. So the night holds on to the day and only one
ray of light comes out and then a second ray and a third ray of light; slowly,
slowly, slowly the light comes out in the morning. How different from
sunset. So when the day is day and the night is night there will be intense
attraction between the day and the night. It is because of that intense
attraction there is a forbidden space between a man and a woman. The
forbidden space is not just physical; but also psychological and sociological.
It should not be invaded, because of the intense attraction that there is
between the male and the female. But when the night tries to become day,
the night will no longer be truly night. The day will no longer be attracted to
the night. When the night is rivaling the day, in the workplace, it’s now an
adversarial relationship not attraction. When the day is no longer attracted
to the night what will happen? Its not what will happen but what is already
happening. The day will now mate with the day. Wherever the modern
feminist revolution and its struggle for women’s liberation have taken roots
the necessary corollary has always been homosexuality. But that is not our
subject tonight. The slave woman is still down there and we want to know
how a slave woman will give birth to her mistress. When the night tries to
become day not only does the night lose her femininity, but she loses
something else. She loses her fertility.  She can’t have babies. But she is
traveling first class, remember! So then how will babies come? Eventually,
the answer is the slave woman down there who is to poor to try and become
day. So her womb is still fertile. This womb will now become a factory and

Downloaded from: www.imranhosein.org 22

she will be paid for her services. For nine months she will live like a queen.
No genetically reengineered food for her but real food. No milk and meat
with hormones, that’s for the rest. So for nine months she lives like a queen.
When the baby is born, baby goes first class and mum goes back down in the
hold. So a slave woman has given birth to her mistress and it has already
started. While the scholars of Islam have been eating halva, it has already
started. We are living now in the Last Age. The only ones, who can read
and understand and penetrate the last age, realize the reality of the world
around them today; are who see with two eyes not one. Who in addition to
the effort that they make to acquire knowledge externally -that effort has to
be made- they also are blessed with the capacity for internally derived
knowledge. When these two oceans of knowledge come together then they
can understand, and penetrate the reality of the world in which we live in
today. This has been an introduction to Islamic Spirituality, The Forgotten
Path of Knowledge, to you.

We pray that Allah Ψ may grant that tonight’s humble lecture may be a
wake up call, and that we may return to this important branch of knowledge
and to this effort which must be made which will realize it.

Transcribed by Irshad Soofi Siddiqui.


Project Commencement: 2019

28      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)28

National School of Statistics and
Applied Economics (ENSEA)

University and Host Country:

National School of Statistics and Applied Economics (ENSEA)

Cote d’Ivoire

Centre’s Website:

www.ensea.ed.ci

Centre Leader:

Dr. KOUADIO Kouassi Hugues

E-mail Address:

hkouadio@ensea.ed.ci / hkouadio@yahoo.fr

Secretariat: ensea@ensea.ed.ci

Deputy Centre Leader:

Jean Arnaud KOUAKOU

E-mail Address:

ja.kouakou@ensea.ed.ci

Primary Thematic Disciplines of the Centre:

• STATISTICS - APPLIED ECONOMY

• Data Science and Policy Evaluation

• Micro and Macroeconomic Modelling

F A C T  S H E E T       29

The Ecole Nationale Supérieure de Statistique
et d’Economie Appliquée (ENSEA) in Abidjan
is the main statistical training institution in
Africa. Created in 1961 with the support of
the European Commission and the French
Cooperation, its vocation is the training of
African statisticians for both the private and
public sectors.

training, continuing education and research (academic

including non-French-speaking countries such as South

Network, the African Group on Statistical Training and

BRIEF DESCRIPTION OF THE CENTRE KEY OBJECTIVES AND EXPECTED RESULTS

associated with it:

• Improving the quality and international
recognition of the training offer; This

pedagogical offer in both continuing and

and its training programmes accredited.

• Developing the quality and visibility of
research; This must be reflected in the

researchers.

• Adapting the technological environment
to the needs of training, research and
administration; The aim is to modernise

• Provide a quality environment for students;

capacities and the implementation of

gender promotion.

• Provide ENSEA with the necessary means
to ensure its development; This includes

National School of Statistics and Applied Economics (ENSEA)

•
infrastructures on a 3 ha site including a welcoming
green space.

•

adapted to the size of the institution
•

• 3 machine rooms for computer work and 1 language

• 2 cities for students and buses for group outings

KEY CAPABILITIES

30      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)

•

•  International

accreditation of the ISE sector obtained in October

• Opening of a doctoral training

with about ten students in two classes;

•  Two editions of the
International Conference on Statistics and Applied

• The functioning of

three CEA bodies (Steering Committee, Technical

MAIN ACHIEVEMENTS TO DATE

National School of Statistics and Applied Economics (ENSEA)

1. Prof. KEHO Yaya

2. Prof. ESSO Loesse
 loesse.esso@ensea.ed.ci

3. Dr. FE Doukouré Charles
 Fe.doukoure@ensea.ed.ci
 doukoure.charles@gmail.com

4. Dr. MOUSSA Kouamé Richard
 richard.Moussa@ensea.ed.ci
 moussakr@gmail.com

5. Dr. FASSASSI Raimi
 raimi.fassassi@ensea.ed.ci

6. Dr. MOSSO Rosine Addy
 rosine.mosso@ensea.ed.ci

7. Dr. SIKA Glebelho Lazarus
 lazare.sika@ensea.ed.ci

8. Dr. SORO Nahoua
 nahoua.soro@ensea.ed.ci
 mariejudithsoro@gmail.com

9. Dr. GAKPA Lewis
 gakpalewis@ensea.ed.ci

10. GBENRO Nathaniel
 nathaniel.gbenro@ensea.ed.ci

Economics

PRIMARY RESEARCH FACULTY MEMBERS

F A C T  S H E E T       31

National School of Statistics and Applied Economics (ENSEA)

1. Groupe des Ecoles Nationales d’Economique
et Statistique (GENES)

 Email: francois.coquet@ensai.fr

2. Université Laval

 Tel: + 1 877 785-2825

3. University of Ottawa

 https://www.uottawa.ca/fr
 afriquesub@uottawa.ca

4. Institut de recherche pour le
 développement (IRD)

 13002 Marseille, France

 Email: roubaud@dial.prd.fr

5. Observatoire économique et statistique

 BP E 1600, Bamako, Mali

 Email: afristat@afristat.org

6. Center for Development Data (C4D2),

7. Institut Sous-régional de Statistique et
d’Economie Appliqué (ISSEA)

8. Ecole Nationale de la Statistique et de
l’Analyse Economique (ENSAE)

 Dakar, Senegal

 Email: abdou.diouf@ansd.sn

9. Eastern Africa Statistical Training Centre
(EASTC)

 Email: info@eastc.ac.tz

10. Makerere University

 Email: agssekiboobo@isae.mak.ac.ug

MAIN REGIONAL AND GLOBAL PARTNERS

110      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)110

Africa Centre of Excellence for
Innovative and Transformative STEM
Education (ACEITSE)

University and Host Country:

Lagos State University, Lagos State. Nigeria.

Centre’s Website:

https://acenpee.abu.edu.ng

Centre Director:

Distinguished Professor Peter Okebukola

E-mail Address:

pokebukola@yahoo.com

Deputy Centre Director:

Professor Tunde Owolabi

E-mail Address:

owot2002@yahoo.co.uk

Deputy Center Director (Science):

Professor Shehu Akintola

E-mail Address:

shehu.akintola2@gmail.com

Primary Thematic Disciplines of the Centre:
• STEM Education

F A C T  S H E E T       111

The Lagos State University (LASU) won the
bid for LASU to host the World Bank- funded
Africa Centre of Excellence for Innovative
and Transformative STEM Education (LASU-
ACEITSE) in 2018. Within the enterprise
of teacher education, science, technology,
engineering and mathematics (STEM) teacher
education has occupied a respectable niche.

and leadership.

education enterprise and not less than 30% of the

Nigeria and the African continent.

BRIEF DESCRIPTION OF THE CENTRE

Africa Centre of Excellence for Innovative and Transformative STEM Education (ACEITSE)

leadership using the CTC Approach.

teachers who will later undertake training
of other teachers and school leaders and

STEM teaching and learning based on
cutting-edge research and practice.

trained STEM teachers.

5. To undertake continuous monitoring
of the critical mass of master teachers

KEY OBJECTIVES AND EXPECTED RESULTS

called the ACEITSE building

foreign students on campus

furniture and classroom equipment

forums, quizzes and assignments.

KEY CAPACITIES
students into the postgraduate programmes of the

building with state-of-the-art facilities for use of

• Commencement of postgraduate students’

• Inauguration and hosting of inaugural meeting

MAJOR ACCOMPLISHMENTS TO DATE

112      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)

1. Professor Sahr P. T. Gbamanja,

2. Professor William C. Kyle

3. Professor Juma Shabani
 Director, Graduate School

4. Professor Alejandro Gallard

 Email: agallard@georgiasouthern.edu

1. Prof. Tunde Owolabi

 CTC approach to Science teaching and teacher

2. Prof. Shehu Akintola
 shehu.akintola2@gmail.com
 Immigrant STEM teacher education

3. Prof. Nwabuno Nwaboku

education

 STEM Teacher Training

5. Prof. Benjamin Aribisala
 benjamin.aribisala@gmail.com

5. Professor Jophus Anamuah Mensah,

Ghana

 Email: jophusam@gmail.com

6. Ambassador Adebola Labiran

Abeokuta

7. Prof. Léonard Todjihoundé

Cotonou. Republic of Benin

8. Mr. Leo Stan Ekeh

6. Prof. Silas Egbowon
 silasegbowon@gmail.com

education

7. Dr. Rasheed Sanni

 Teacher knowledge and teacher learning in
mathematics education

8. Dr. Michael Ahove

9. Dr. Hakeem Akintoye

 CTC Approach to Science teaching

10. Dr. Yemisi Oludipe
 olajumoke.oludipe@lasu.edu.ng
 STEM teachers’ knowledge

PRIMARY REGIONAL AND GLOBAL PARTNERS

PRIMARY RESEARCH FACULTY MEMBERS

Africa Centre of Excellence for Innovative and Transformative STEM Education (ACEITSE)

F A C T  S H E E T       143

Centre of Excellence in
Sustainable Cities in Africa
(CERViDA - DOUNEDON)

University and Host Country:

University of Lomé, TOGO

Centre’s Website:

www.cervida-togo.org

Centre Director:

Professor Co� Cyprien Aholou

E-mail Address:

caholou@gmail.com

Primary Thematic Disciplines of the Centre:
• Sustainable Urban Management (environment, sanitation,

mobility, urban economics and marketing)

144      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)

of training offers for new middle and
senior managers in sustainable urban
management (master’s and doctorate

professionals in the sector.

sector professionals

plans

• A framework for consultation between

professionals is created.

Brief description of the centre The centre
is an initiative of the lecturer-researchers of
the University of Lomé in an interdisciplinary
approach, to contribute through training
and research, to the sustainable urban
development of African cities by taking into
account the realities of the continent.

management, to strengthen the capacities of
professionals in the urban sector through short-term

BRIEF DESCRIPTION OF THE CENTRE

Centre of Excellence in Sustainable Cities in Africa (CERViDA - DOUNEDON)

KEY OBJECTIVES AND EXPECTED RESULTS

one hand, and a performance contract between the

• Establishment of support bodies for the

• Signing of cooperation agreements with academic

MAJOR ACCOMPLISHMENTS TO DATE

• The Centre has human resources and regional and

construction of its own premises.

circles in the urban sector (sectoral ministerial
departments, local authorities, professional
associations (architects, town planners, sanitation

KEY CAPACITIES

F A C T  S H E E T       145

1. Professor Gnon BABA
 gnonbaba@gmail.com

2. Professor Kssao GNANDI
 kgnandi@gmail.com

caholou@gmail.com

4. Dr. Komlan AVOUGLA (Senior Lecturer

5. Dr. Mafobatchie NANTOB (Senior Lecturer)

6. Dr. Edem KOLEDZI (Senior Lecturer)
edemledzi@gmail.com

7. Dr. Madjouma KANDA (Lecturer)

8. Dr. Bassai Bodjona (Master Assistant)
bodjonabassai@mail.com

9. Dr. Koko Zébéto HOUEDAKOR

PRIMARY RESEARCH FACULTY MEMBERS

1. Ecole Africaine des Métiers d’Architecture et

Contact person: Professor Alassane DIENE,

James

PRIMARY REGIONAL AND GLOBAL PARTNERS

70      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)70

Centre of Excellence in Innovative
Teaching / Learning of Mathematics
and Sciences for Sub-Saharan Africa
(CEA / IEA-MS4SSA)

University and Host Country:

Abdou Moumouni University

(Through the École Normale Supérieure), Niamey (Niger)

Centre’s Website:

www.cea-ms4ssa.org

Centre Leader:

Prof. MADOUGOU Saïdou

E-mail Address:

nassara01@yahoo.fr

Deputy Centre Leader:

Ms. IBRAHIM DOKA Dahiratou (Lecturer)

E-mail Address:

dahiratou@yahoo.fr

Primary Thematic Disciplines of the Centre:
STEM Education - Teacher training in Mathematics and Sciences

F A C T  S H E E T       71

It is recognized that education is the basis for
the development of any individual, human
community or nation. Studies on the teaching
of mathematics and science in Sub-Saharan
Africa point to a poor performance of pupils
and their under-enrollment in scientific series,
as well as an insu�ciency of quality teaching /
learning conditions.

disparities in these disciplines and contribute to the

professional and technical training. The Center will offer
diploma courses at the Bachelor, Master and Doctorate

train independent teachers, capable of implementing

will also conduct applied research in mathematics,

Center will establish academic, sectoral and industrial
partnerships with different institutions.

BRIEF DESCRIPTION OF THE CENTRE

KEY OBJECTIVES AND EXPECTED RESULTS

performance of our countries in science,

•

good teaching / learning practices in
mathematics and science based on new

•
adapted to the needs of our countries;

•

sciences and in life and earth sciences;

•
and research infrastructure;

• Establish collaboration with other regional
and international centers in order to share
and disseminate good teaching / learning
practices;

•

terms of teacher professional training.

• Independent teachers, at the license, master

stimulate the performance of our countries

•

• Accredited training programs and adequate
teaching and research infrastructure are in
place;

and in the sub-region.

• Train independent teachers, at the license,

teaching-learning in mathematics
and science in order to stimulate the

Centre of Excellence in Innovative Teaching / Learning of Mathematics and Sciences for Sub-Saharan Africa (CEA / IEA-MS4SSA)

72      Africa Higher Education Centres of  Excellence for Development Impact (ACE Impact)

•

• Joint research projects are implemented;

•

• The institutional capacities of national and
regional partners are strengthened;

• Multiple and lasting collaborations are
established between the different partners.

• Elaboration and submission of all institutional

•

•
at least three months in the workplace during the 1st

•

•

•
classrooms for Bachelor and Master and Doctorate
students;

•

in these disciplines;
•

•

•
sub-regional training offers.

MAIN ACHIEVEMENTS TO DATE

KEY CAPABILITIES

1. Ouagadougou Institute of Sciences

5. The different ACE regional impact on the
same theme or with collaboration interests.

REGIONAL PARTNERS

INTERNATIONAL PARTNERS

Centre of Excellence in Innovative Teaching / Learning of Mathematics and Sciences for Sub-Saharan Africa (CEA / IEA-MS4SSA)

F A C T  S H E E T       73

African Center of Excellence for the Prevention and Control of Communicable Diseases (CEA-PCMT)

1. M. ALHOU Bassirou (PhD)

 Hydrobiology and Didactics SVT

2. Mme GOZA Nana Aïcha (PhD)

 Psychopedagogy and General Didactics

3. M. KAKA Mohamadou (PhD)

 Physical

4. M. BOUKARY M. Sani (PhD)

 Physics / Didactics of Physical Sciences

5. M. BOUKARI Issiaka (PhD)

 Chemistry

6. M. MAHAMAN KABIR M. (PhD)

 Mathematics

7. M. RABIOU Ousman (PhD)

 Mathematics Didactics

8. M. GAZIBO K. Mohamed (PhD)

 Mathematics

9. M. HALILOU Oumarou (PhD)

 Biology / SVT

10. M. ALMOU Mamane (PhD)

 Chemistry

PRIMARY RESEARCH FACULTY MEMBERS


BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)
Shari'ah, Law, Islamic Finance and Muslim News
My Case Report
Although, Islamic finance has been implemented for more than 45 years since the formation of the Mitr Ghams Savings Bank on 23rd July 1963 in Egypt and numerous court cases have been brought to the court, it is found however that until to date there are only few published court decisions relating to Islamic banking cases. From my observation, between 1987-2008, there were several Islamic banking cases have been published in the respective law reports and majority of the cases involved BBA and Murabaha facilities except in the case of Tinta Press Sdn Berhad v BIMB (1987) 1 MLJ 474; 1 CLJ 474 where it dealt with Ijarah financing facility. I also insert cases from different jurisdiction such as in England and United States for comparative overview and understanding on the actual legal practice of Islamic finance worldwide.
Please find enclosed the selected cases report and cases commentary pertaining to Islamic finance for your reading pleasure:-
MK Associates Sdn Bhd v. Bank Islam Malaysid Berhad (2015) 6 CLJ

Bank Kerjasama Rakyat Malaysia Bhd v Brampton Holdings Sdn Bhd [2015] 4 CLJ

Maybank Islamic v M Builders [2015] 4 CLJ

Islamic Investment Company of the Gulf (Bahamas) Ltd. V. Symphony Gems N.V. & Ors . The London High Court, 13th February 2002, 2001, 2001 Folio 1226 per Justice Tomlinson, 2002 West Law 346969, QBD (Comm. Ct.)

Shamil Bank of Bahrain v Beximco Pharmaceuticals Ltd [2004] 1 Lloyd’s Rep 1

Balz, K. (2004). A Murabaha Transaction in English Court. Islamic Law and Society. Volume 11. pp. 117-134

Arab Malaysian Merchant Bank Berhad v. Silver Concept Sdn Bhd [2005] 5 MLJ 210

Affin Bank Berhad v Zulkifli Abdullah-Perspective. [2006] 4 MLJ i

Affin Bank Berhad vs Zulkifli Abdullah (2006) 3 MLJ 67

Malayan Banking Berhad v Yakup bin Oje & Anor [2007] 6 MLJ 398

The recent High Court ruling dated 8th July 2008

Arab-Malaysian Merchant Bank Bhd v Silver Concept Sdn Bhd [2008] 6 MLJ 295

Arab Malaysian Fimance Bhd vs Taman Ihsan Jaya Sdn Bh.d & Ors (Koperasi Seri Kota Bukit Cheraka Bhd, Third Party) [2008] 5 MLJ

Kevin J. Murray v Henry M. Paulson Jr. in the United States District Court for the Eastern District of Michigan

Affin Bank v Abdul Aziz Hidzir

Bank Kerjasama Rakyat v Fadason Holding and Ors

Investment Dar v Blom Development

Tan Sri Abdul Khalid bin Ibrahim v Bank IslamMalaysia Bhd [2012] 7 MLJ 597

Tan Sri Abdul Khalid bin Ibrahim v Bank IslamMalaysia Bhd and another suit [2009] 6 MLJ 416

Bank Islam Malaysia Bhd v Azhar bin Osman and other cases [2010] 9 MLJ 192

Bank Kerjasama Rakyat Malaysia Berhad v Emcee Corporation Sdn. Bhd. [2003] 2 MLJ 408; 1 CLJ 625

Dato’ Nik Mahmud Bin Daud v Bank Islam Malaysia Berhad [1996]4 MLJ 295

Light Style Sdn Bhd v KFH Ijarah House (M) Sdn Bhd [2009] 4 MLJ 575

Bank Islam Malaysia Bhd v Lim Kok Hoe & Anor and other appeals [2009] 6 MLJ 839

Malayan Banking Bhd v Marilyn Ho Siok Lin [2006] 7 MLJ 249

Jofa Hilmi bin Jaafar & Anor v Abdul Hakam bin Abdul Hadi & Anor [2012] 7 MLJ 636

Tahan Steel Corp Sdn Bhd v Bank Islam Malaysia Bhd [2012] 2 MLJ 314

Bank Kerjasama Rakyat Malaysia Bhd v Sea Oil Mill (1979) Sdn Bhd & Anor [2010] 2 MLJ  740

Bank Islam Malaysia Bhd lwn Pasaraya Peladang Sdn Bhd [2004] 7 MLJ 355

Bank Muamalat Malaysia Bhd v Che’ Rus bin Husin & Ors [2004] 4 MLJ 67

BIMB v Tinta Press [1986] 1 MLJ 256

Mohd Alias bin Ibrahim v RHB Bank Bhd & Anor [2011] 3 MLJ 26

Saravanan a/l Thangathoray v Subashini a/p Rajasingam [2007] 2 MLJ 705

Fauzillah Salleh v Universiti Malaysia Terengganu [2012] 4 CLJ 601
Share this:
Facebook

X
Like this:
8 thoughts on “My Case Report”
cencurut
says:
November 25, 2008 at 11:37 am

Dear Sir,

I wonder why all (so called) Islamic Financial Institution and Bank in Malaysia has eagerly implement all sort of Islamic product (i.e BBA, Mudharabah, Musyarakah and others) while not even one have tried to implement Al-Qardhul Hassan. even though Al-Qardhul Hassan has been endorsed by Rasulullah S.A.W and used by Sahabah, whilst the other method (I suspected might be planted with RIBA by orientalist within our ulama’s) which only appeared on Ottoman Empire in Turkey and not on Rasulullah S.A.W time.

For me as long as this (so-called) Islamic Financial Institution and Bank don’t want to implement Al-Qardhul Hassan, their (so-called) Islamic financial product should not be labeled as Islamic (as I found out that their Islamic product don’t comply with the basic requirement – i.e to help the needs of others).

Right now (the cases of Affin Bank vs Zulkifly Abdullah), there you can see how the bank makes money more than it should while using BBA as a cover.

Right me if I’m wrong. Thanks

Reply

izne says:
December 2, 2008 at 6:47 am

Might want to read the Historic Judgment on Riba by the Supreme Court of Pakistan [http://www.albalagh.net/Islamic_economics/riba_judgement.shtml]

Reply

fadhilah ali says:
April 30, 2009 at 4:11 pm

Dear Zulkifli Hasan,

What an impressive blog. Keep up your good work and I pray the best in your career.

Fadhilah Ali

Reply

ZULKIFLI HASAN says:
May 2, 2009 at 8:33 am

Salam and Many thanks for your doa.

Reply

Ismail N
says:
January 16, 2014 at 6:15 am

Thank you very much Dr., for sharing your knowledge, information and opinion here.  It is most enlightening and will continue to enlighten many minds, Insyallah. May your deeds receive His eternal blessings.

Reply

Jiehan says:
May 6, 2015 at 2:20 pm

very helpful sharing knowledge information.thank you, Dr.

Reply

Hamad Al-Sayed says:
August 12, 2016 at 8:07 pm

Salam alaikom Dr. Hasan,

I am Hamad who met you Today’s morning in Durham IF summer school and thank you for your informative presentation.

The three cases of 2015 on the top are not downloadable. Could you please advise or so?

Reply

Hamad Al-Sayed says:
August 18, 2016 at 2:51 pm

Dear Dr. Hassan,

It was a pleasure to meet you in Durham. May Allah grant you tawfeeq.

I could not download the three 2015 cases mentioned in the top.

Thank you.

Best,

Hamad

Reply
Leave a Reply
Cancel reply
AUTHOR
DR. ZULKIFLI HASAN
Menu
Welcome to My Blog of Knowledge

About Me

Professional Background

My Journal

My Selected Publication

My Course Outline

My Lecture Note

My Recommended Reading

My Statute

My Case Report

My Guideline

My Idea

My Thought

My ‘Quest for Meaning’

My Activity

My Conference

My Corporate Governance Network

My Distance Learning

My E-Fatwa

My E-Lecture Series

My Guidance

My Hyperlink

My Key Terms and Concepts

Islamic Science University of Malaysia

Archives

My Movie
Search
Al-Baqarah, 2:275
Calendar
November 2023

M

T

W

T

F

S

S

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30
« Feb
Academic
Centre for Islamic Area Studies at Kyoto University

Durham Islamic Finance Programme

Harvard University Islamic Finance Project

IIUM Institute of Islamic Banking and Finance

INCEIF

International Institute of Islamic Economics

International Shari'ah Research Academy for Islamic Finance

MIHE
Blogroll
Abdullah Saeed

Mahmud El-Gamal

Mohammad Obaidullah

Monzer Kahf

Muhammad Nejatullah Siddiqi

Muhammad Umer Chapra

Sheikh Ahmad Raysuni

Sheikh Imran Hossein

Sheikh Muhammad Afifi Al Akiti

Sheikh Muhammad Said Ramadhan al-Buthi

Sheikh Muqbil Haadee

Sheikh Salman Audah

Sheikh Tariq Ramadan

Sheikh Wahbah al-Zuhayli

Sheikh Yusuf al-Qaradawi

Syed Hossein Nasr

Zakir Naik
Higher Education
Association of African Universities

Consortium for North American Higher Education Collaboration

Education International

Higher Education in Malaysia

UNESCO

University and College Union
Institutional Infrastructure for Islamic Finance
Accounting and Auditing Organization for Islamic Financial Insitutions

General Council of Islamic Banks and Financial Institutions

International Islamic Financial Market

Islamic Development Bank

Islamic Financial Services Board

Islamic International Rating Agency

Islamic Research and Training Institute

Liquidity Management Centre
Islamic Finance Worldwide
Islamic Finance in Germany

Islamic Finance Indonesia

Islamic Finance Turkey
Muslim Activist
Fethullah Gulen

Hamza Tzortzis

Hamza Yusuf

Lauren Booth

Yahia Abdul Rahman

Yvonne Ridley
Muslim Da'wah Movement
ABIM Negeri Sembilan

Islamic Society of North America

Minda Madani

Muslim Brotherhood

Muslim Council of Britain

Muslim Student Association of Japan

Swiss Muslim Society
My Hobby
Muslim Soccer Blog

Ulama Nusantara
My Malaysia
Centre for Policy Initiative

Centre for Public Policy Studies

Institute of Strategic and International Studies

Malaysian Institute of Economic Research

Socio-Economic and Environmental Research Institute
My Usrah
ABIM

Baytulkifli

Hanif's Family

Malaysian Durham Scholars

MISG
Website on Islamic Finance
Al Huda

Al Sukuk

Global Islamic Finance Centre

Invest Halal

Islamic Business Research Centre

Islamic Finance

Islamic Finance Asia

Islamic Finance Blogspot

Islamic Finance Information Service

Islamic Finance Resources

Muslim Investor

Muslim Net

My Professional Group Directory

Opalesque Islamic Finance

Westlaw Business Islamic Finance
Categories
Islamic finance news

Muslims News

My Publication

My recent publication

My Story

My Thought

News

Palestine

Poem
Blog Subscriptions
Enter your email address to follow this blog and receive notifications of new posts by email.
Email Address:
Sign me up!
Blog Stats
565,904 hits
Recent Comments
DR. ZULKIFLI HASAN on
FIQH JIHAD ASAS MEMAHAMI KRISI…

Muhammad Khaliff on
FIQH JIHAD ASAS MEMAHAMI KRISI…

asma
on
Islamic finance: Attractive fo…

brosafwan
on
Islamic body goes global to fi…

Siti on
Guru Sebagai Murabbi, Mudarris…

Hasnan Daud (HD)
on
Tajdid and Mujaddid

asma on
IMF endorses Islamic finance,…

DR. ZULKIFLI HASAN on
Letter from Yusuf al Qaradawi…

Aiman Achim
on
Letter from Yusuf al Qaradawi…

Aiman Achim
on
Letter from Yusuf al Qaradawi…
Top Clicks
islamonline.net/servlet/S…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…
Top Posts
Guru Sebagai Murabbi, Mudarris, Mualim, Muaddib Dan Mursyid “Selamat Hari Guru”

MEMAHAMI KONSEP “SUMPAH” DALAM ISLAM

Tajdid and Mujaddid

Top 100 Companies of the Muslim World: 2010 DS100 Ranking

MEMAHAMI ISU ISLAMOFOBIA: ANTARA PERSEPSI DAN REALITI
Archives
February 2018

June 2017

February 2017

January 2017

December 2016

October 2016

September 2016

July 2016

June 2016

April 2016

February 2016

January 2016

December 2015

November 2015

October 2015

September 2015

August 2015

July 2015

June 2015

May 2015

April 2015

February 2015

January 2015

December 2014

November 2014

October 2014

September 2014

August 2014

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

October 2012

September 2012

August 2012

July 2012

June 2012

May 2012

April 2012

March 2012

February 2012

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011

May 2011

April 2011

March 2011

February 2011

January 2011

December 2010

November 2010

October 2010

September 2010

August 2010

July 2010

June 2010

May 2010

April 2010

March 2010

February 2010

January 2010

December 2009

November 2009

October 2009

September 2009

August 2009

July 2009

June 2009

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

August 2008

July 2008

June 2008
Categories
Islamic finance news
Muslims News
My Publication
My recent publication
My Story
My Thought
News
Palestine
Poem
Create a free website or blog at WordPress.com.
Cookie Policy
Follow

Following

BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)

Join 235 other followers

												Sign me up

Already have a WordPress.com account?
Log in now.
BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)

Customize

Follow

Following

Sign up

Log in

Copy shortlink

Report this content

View post in Reader

Manage subscriptions

Collapse this bar


404 — File not found.

You can
create your own free blog on WordPress.com
.


+

IFSA and Takaful

Zulkifli Hasan, PhD

+
Contents

n  Legal Framework Overview

n  Takaful Act 1984

n  IFSA 2013

+
Choice of Model

n  Shariah concerns

n  Regulatory concerns

n  Technical and business concerns

+
Takaful Business Models

n  Sudan, Egypt, Syria, KSA- Mudharabah

n  Malaysia and Middle Eastern TO- Wakalah hybrid

n  Indonesia, Pakistan Sri Lanka- Windows operations.

+

+

+

+

+

+

+

+
Takaful Act 1984

n Malaysia’s Takaful Act 1984 has been
introduced as a package toward
development of Islamic Finance in
Malaysia.

n During the year, this act is presently
the world’s only specifically legislated
the structure on governing the
operation of Takaful funds.

+Takaful Act 1984

n  S 4 of the TA- takaful operators only
n  1. Company 2. Cooperatives Society.
n  In order to carry on takaful business the TO

must:-
n  1. registered under the Act.
n  2. Maintains a surplus of assets over

liabilities of not less than the amount
prescribed from time to time.

n  3. made deposit with the Accountant
General a value of not less than the amount
prescribed by the minister

+
Cont…

n  S8- DG responsible for registration S10- DG may impose
conditions for registration.

n  S 8(5)- Vital Section- DG must be satisfied that the aims and
operations –syariah principles.

n  The AOA to establish SSC.

n  S 16- TO shall establish and maintain a takaful fund in respect
of each classes of takaful business.

+
IFSA 2013

n  IFSA 2013 and Takaful

n  For stability

n  More power to BNM

n  To protect consumers

n  To strengthen shariah governance

n  Heavy penalty

+
Scope of IFSA 2013 and Takaful

n  1. Prudential Matters and Corporate Governance

n  2. Shariah Governance

n  3. Business Conduct and Consumer Protection

+Definition

n  ‘Retakaful’ now also covers arrangement between head office and
branch

n   ‘Senior officer’ is statutorily defined and covers everyone having
authority and responsibility for planning, directing or controlling the
activities of  a TO; excluding the Shariah Committee

n   ‘Shariah Committee’ is formally required – with governance
framework, statutory duties and privileges similar to actuaries and
auditors (no longer just a Syariah advisory body)

+
Definition

n  ‘Takaful certificates’ are expanded; whereby issuing a
takaful certificate shall be construed as entering into a
contract of takaful, whether or not a formal contract has been
issued

n  ‘Takaful contribution’, which was mentioned only once in
the TA, us now extensive mentioned and regulated under the
IFSA

+Legal Form

n   International takaful business (by international takaful
operator), which is previously governed under Part IIA of
the Takaful Act, continues to exist under the IFSA – no
such business or operator under the FSA for conventional
insurers

n All takaful operators have to separate family takaful and
general takaful businesses within 5 years from Appointed
Date

n All takaful operators have to be a ‘public’ company within
12 months from Appointed Date

+
Takaful Certificate

n  S. 140, IFSA – Schedule 8 sets out provisions relating to
takaful certificates

+Pre-Contractual Duty of Disclosure

n S. 141, IFSA – Schedule 9 : Sets out the pre-contractual
duty of disclosure and representations for contracts of
takaful in Part 2, and the remedies for misrepresentations
relating to contracts of takaful in Part 3

n Breach of duty of disclosure under paragraph 11 of
Schedule 9 is punishable with imprisonment not
exceeding five years or fine not exceeding ten million
ringgit or both.
*Note that Schedule 9 explicitly states that it does not have
retrospective effect

+
Payment of Takaful Benefits

n S. 142, IFS – Schedule 10

n sets out provisions for the payment of
takaful benefits upon death of a takaful
participant under a family takaful
certificate, or personal accident takaful
certificate issued in respect of a contract of
takaful entered into by the takaful
participant upon his life

+
Scope of Business

n A licensed takaful operator shall not carry
on both family takaful business and general
takaful business, except that it may carry on
the general takaful business relating to
medical by reason of disease or sickness or
medical expenses subject to such
requirements and conditions as may be
specified by BNM – s.16, IFSA

+Cont…

n A transition period of five years from the time
the IFSA comes into operation is allowed-
separate family takaful business and general
takaful business to comply with this – s.286,
IFSA.

n Only licensed professional retakaful operator
can carry on both family takaful business and
general takaful business

+Cont..

n Any breach of the above may be liable to
imprisonment not exceeding eight years or a
fine not exceeding twenty-five million ringgit or
to both.

n Except with the prior written approval of BNM,
a licensed takaful operator shall not carry on
annuity certain business, financial guarantee
takaful business or credit guarantee takaful
business – s.15(4), IFSA

n Must be a public company – s. 21,

+Winding-Up

n Division 3 sub 2 (ss. 212 - 218), IFSA – In the
winding up of a Licensed takaful operator:

n  the valuation of its assets and liabilities, of the
shareholders’ fund and takaful fund, including
liabilities in respect of takaful certificates, shall be
on a basis determined by BNM and excludes the
application of the law relating to bankruptcy or
insolvency.

n termination of all takaful certificates issued by a
licensed takaful operator is effective from the date
of the winding up order and sets out the items
which a takaful participant can claim as a debt due
to him.

+Cont…

n a liquidator of a licensed takaful operator which
is being wound up shall pay in good faith to any
of its claimants without requiring strict proof of
debt of such claims to facilitate payment.

n issuance of a takaful certificate by a director,
officer, agent or contributory, past or present, of
a licensed takaful operator which is being
wound up after its cessation of takaful business
is prohibited.

+
Cont..

n the liquidator of a family takaful operator is
empowered to carry on its existing family takaful
business with a view to its transfer as a going
concern to another takaful operator.

n provisions relating to the priority of payment in
winding up of a licensed takaful operator are to be
followed.

+Due Regard to SC Decision

n BoD to have regard to interest of  takaful
participants; have due regard to any decision of the
Shariah committee on any Shariah issue relating to
the carrying on of business, affairs or activities of
the institution

n Potential conflict of interest between majority
shareholder and takaful participants

+
Civil Actions

n Civil actions can be brought by any
persons or institutions or by BNM on their
behalf against any persons who
contravenes or is in breach of the IFSA
provisions.

+
Statutory Duties

n 1. Shariah Compliance

n 2. Reporting Duties

+Shari’ah Compliance and Reporting
Duties
n  s.28, IFSA)

n  (3) Where an institution becomes aware that it is carrying on
any of its business, affair or activity in a manner which is
not in compliance with Shariah or the advice of its Shariah
committee or the advice or ruling of the SAC, the institution
shall —

n  (a) immediately notify BNM and its Shariah committee of
the fact;
(b) immediately cease from carrying on such business,
affair or activity and from taking on any other similar
business, affair or activity;

n and
(c) within 30 days of becoming aware of such
noncompliance or such further period as may be specified
by BNM, submit to BNM a plan on the rectification of the
non-compliance.

+
Takaful fund

n S 94 prohibits a licensed takaful operator
from making any withdrawal from a takaful
fund, whether from the surplus, or
otherwise, of that takaful fund unless all the
conditions set out is fulfilled.

n S 91 makes it mandatory for takaful
operator to separate takaful fund and
shareholders’ fund.

n S 95 makes qard or loan provision is
compulsory to every takaful operator in the
event of deficit of the risk fund.

+Warranties and representations (para.10, Sch.9)

n “Any representation made before a consumer takaful
contract was entered into, varied or renewed shall not be
converted into a warranty by means of any provision of the
consumer takaful contract or of any terms of the variation
or of any other contract, whether by declaring the
representation to form the basis of the contract or
otherwise.”

n Abolishes the ‘basis of contract’ clause in consumer
takaful contracts.

n Takaful operators can no longer argue that an inaccurate
answer constitutes a breach of warranty to render a
consumer takaful contract void from its inception.

n Therefore, takaful operators can only void a consumer
takaful contract on grounds of misrepresentation.

+
Cont..

n Non-Consumer takaful: Basis of
Contract Clause-Void

n Consumer Takaful:
n Misrepresentation: reckless-

contract void and no refund of
contribution

n Innocent: Contract void and
refund the contribution.

+Duty to Disclosure

Party Non-consumer takaful contracts  Consumer takaful
contracts

Takaful
Operator

Duty to not:
Make misleading or false
statements,
• fraudulently or otherwise;
•  Fraudulently conceal a material

fact; or
In the case of takaful agents,use
• unauthorised sales brochures

Same

Duty to clearly inform a proposer
in writing of the proposer’s pre-
contractual duty of disclosure, and
that this duty of disclosure shall
continue until the time the contract
is entered into, varied or renewed

Onus is on TO to ask
a consumer to answer
specific questions

+Prohibited Business

n List of prohibited business conduct (Schedule 7)

n Engaging in conduct that is misleading or deceptive in
relation to the nature, features, terms or price of financial
service or product

n Inducing financial consumer to an act or omit to do an act
in relation to financial service or product by Making
misleading, false or deceptive statements;
Dishonestly concealing or omitting material facts;
Recklessly making any statement, illustration, promise,
forecast or comparison which is misleading, false or
deceptive.

+Cont…

n Exerting undue pressure, influence or using or threatening
to use harassment, coercion, or physical force in relation to
the provision of or payment for financial service or
product.

n Demanding payments for unsolicited financial services or
products unless the financial consumer has communicated
his acceptance of the offer either orally or in writing.

+Cont….

n Exerting undue pressure on, or coercing,
financial consumer to acquire financial service
or product as a condition for acquiring another
financial service or product.

n Colluding to fix or control the features or terms
of financial service or product to the detriment
of financial consumer, except for tariff or
contribution rates or policy terms approved by
BNM.

+
Claims Regulations under IFSA

n Participants can opt to nominate under 2
scenarios
n 1. conditional hibah
n 2. executor

n Late payment benefits-
n 1. to credit at the average rate of return of

the PRF
n 2. 1% paid from shareholders fund.


Law of Banking and Law of Banking and

SecuritySecurity

DR. ZULKIFLI HASANDR. ZULKIFLI HASAN

27th September 201127th September 2011

Week IIIWeek III

ContentsContents

�� The BankerThe Banker--Customer RelationshipCustomer Relationship

�� Definition of Definition of ’’BankerBanker’’ and and ’’CustomerCustomer’’

�� Nature of BankerNature of Banker--Customer RelationshipCustomer Relationship

�� Agent & Principal RelationshipAgent & Principal Relationship

�� Fiduciary Fiduciary relatrelationshipionship

�� DebtorDebtor--Creditor RelationshipCreditor Relationship

�� Constructive Trustee and Beneficiary RelationshipConstructive Trustee and Beneficiary Relationship

Definition of bankerDefinition of banker

�� Common lawCommon law

�� Text books/profound scholarsText books/profound scholars

�� StatutesStatutes

�� Judicial InterpretationJudicial Interpretation

Common lawCommon law

�� Bank of Bank of ChettinadChettinad v Commissioner of Income Tax v Commissioner of Income Tax

Colombo[1948] AC 378Colombo[1948] AC 378

The terms The terms ““bankingbanking”” and and ““bankbank”” may bear different may bear different

shades of meaning at different periods of history, their shades of meaning at different periods of history, their

meaning may not be uniform in countries due to meaning may not be uniform in countries due to

different habits of life and degrees of civilization.different habits of life and degrees of civilization.

Bank of New South Wales v Commonwealth [1948] 76 CLR 1 Bank of New South Wales v Commonwealth [1948] 76 CLR 1
334334-- Dixon J:Dixon J:

�� ““Banking should have ascribed to it anything but a Banking should have ascribed to it anything but a
wide meaning and a matter forming part of the wide meaning and a matter forming part of the
commercial, economic and social organization of the commercial, economic and social organization of the
communitycommunity””..

�� Varied from age to age and country to country.Varied from age to age and country to country.

Commonwealth v Bank of New South WalesCommonwealth v Bank of New South Wales [1950] ac 235 [1950] ac 235
303.303.

�� ““the creation and transfer of credit, the making of the creation and transfer of credit, the making of
loans, the purchase and disposal of investments and loans, the purchase and disposal of investments and
other kindred activitiesother kindred activities””..

United Dominions Trust Ltd v KirkwoodUnited Dominions Trust Ltd v Kirkwood [1966] 1 ALL [1966] 1 ALL

ER 968ER 968

�� Lord Lord DiplockDiplock: it is essential to the business of : it is essential to the business of

banking that a banker should accept money banking that a banker should accept money

from its customers upon running account into from its customers upon running account into

which sums of money are from time to time which sums of money are from time to time

paid by the customer and from time to time paid by the customer and from time to time

withdrawn by him.withdrawn by him.

TextbooksTextbooks

�� HalsburyHalsbury’’ss Law of EnglandLaw of England

�� Banker is an individual, partnership/corporation, whose Banker is an individual, partnership/corporation, whose
sole/predominating business is banking.sole/predominating business is banking.

�� Dr HL HartDr HL Hart

�� A person/company carrying on the business of A person/company carrying on the business of
receiving moneys and collecting draftsreceiving moneys and collecting drafts

�� HonourHonour chequescheques

�� Current AccountCurrent Account

�� PagetPaget’’ss Law of Banking: Law of Banking:
�� Accept money on current accountsAccept money on current accounts

�� Payment of Payment of ChequesCheques

�� Collection of Collection of ChequesCheques

Statutory DefinitionsStatutory Definitions

�� Section 4(a) of BAFIASection 4(a) of BAFIA-- all banks must be public all banks must be public
companies.companies.

�� Section : Banking business means:Section : Banking business means:--
(a)(a) (i) Receiving deposits on current account, deposit account, (i) Receiving deposits on current account, deposit account,

savings account or other similar account;savings account or other similar account;

(ii) paying or collecting (ii) paying or collecting chequescheques drawn or paid in by drawn or paid in by
customers andcustomers and

(iii) provision of finance(iii) provision of finance

(b)(b) Such other business as the Bank, with the approval of the Such other business as the Bank, with the approval of the
Minister, may prescribe. Minister, may prescribe.

�� Bills of Exchange Act 1949 Banker is a body of Bills of Exchange Act 1949 Banker is a body of
persons, whether incorporated or not, who carrying persons, whether incorporated or not, who carrying
the the business of banking.business of banking.

Judicial InterpretationJudicial Interpretation

United Dominions Trust Ltd v KirkwoodUnited Dominions Trust Ltd v Kirkwood [1966] 1 ALL [1966] 1 ALL

ER 968ER 968

�� Business of banking:Business of banking:--

�� i) the conduct of current accountsi) the conduct of current accounts

�� Ii) the Payment of Ii) the Payment of chequescheques drawn on bankers;drawn on bankers;

�� Iii) The collection of Iii) The collection of chequescheques for customers.for customers.

Recover Debts Recover Debts

�� Bank of China v Lee Bank of China v Lee KeeKee Pin [1961] MLJ 40Pin [1961] MLJ 40

HC: A bank which was refused a license could still recover HC: A bank which was refused a license could still recover

debts because it does not amount to carrying on banking debts because it does not amount to carrying on banking

business.business.

Foreign Bank Acquiring and Foreign Bank Acquiring and

Accepting Charges of LandAccepting Charges of Land

�� KohKoh Kim Kim ChaiChai v Asia Commercial Banking v Asia Commercial Banking

Corporation LimitedCorporation Limited [1984] 1 MLJ 322[1984] 1 MLJ 322

�� FC: the transaction of acquiring and accepting FC: the transaction of acquiring and accepting

charges of land in Malaysia could not be said to charges of land in Malaysia could not be said to

come within the ambit of banking business in come within the ambit of banking business in

MalaysiaMalaysia

Development financeDevelopment finance

�� SabahSabah Development Bank Development Bank BhdBhd v SKBS (v SKBS (SabahSabah) ) SdnSdn BhdBhd & &
Ors [1992] 1 Ors [1992] 1 mljmlj 454454

�� HC: Development finance institutions are not banks. HC: Development finance institutions are not banks.
Banks: Take current account, Pay Banks: Take current account, Pay ChequesCheques, Collect , Collect
ChequesCheques

�� Bank Bank IndustriIndustri M M BhdBhd v v TechnoproTechnopro Corp M Corp M BhdBhd & & OrdOrd
[1998] 6 MLJ 754[1998] 6 MLJ 754

�� HC: Development finance business:HC: Development finance business:-- the business of the business of
providing capital or credit facility or such other providing capital or credit facility or such other
business as the Bank may prescribe. business as the Bank may prescribe.

Soliciting Business in Malaysia and Soliciting Business in Malaysia and

Offering facilities in foreign currencyOffering facilities in foreign currency

�� BanqueBanque NationaleNationale De Paris v De Paris v WuanWuan SweeSwee May & May &

AnorAnor [2000] 3 [2000] 3 mljmlj 587587

�� HC: Although being a banking business, it does HC: Although being a banking business, it does

not mean that the bank is carrying on the not mean that the bank is carrying on the

business of banking in Malaysia.business of banking in Malaysia.

Definition of CustomerDefinition of Customer

�� No statutorily definedNo statutorily defined

�� Depositor v Customer Depositor v Customer

�� Depositor: a person entitled to repayment of Depositor: a person entitled to repayment of

deposit, whether made by him or any other deposit, whether made by him or any other

person.person.

�� BAFIA is silent on the definition of customer.BAFIA is silent on the definition of customer.

�� Have to rely on the definitions laid down by the Have to rely on the definitions laid down by the

courtscourts

The Relationship of B&C exists when the The Relationship of B&C exists when the

parties intend to enter into itparties intend to enter into it

�� Robinson v Midland Bank LtdRobinson v Midland Bank Ltd (1925) 41 TLR 402(1925) 41 TLR 402-- COA: COA:

unless both parties intend to enter into it.unless both parties intend to enter into it.

�� There exists an account with a bank through which There exists an account with a bank through which

transactions are passedtransactions are passed

�� Oriental Bank of Malaya v Rubber Industry (Replanting Board)Oriental Bank of Malaya v Rubber Industry (Replanting Board)

[1957] MLJ 153[1957] MLJ 153

�� COACOA--A person is a customer from the time a bank A person is a customer from the time a bank

accepts instruction to collect monies from a third party accepts instruction to collect monies from a third party

although no account is formally openedalthough no account is formally opened

Nature of the Banker and Nature of the Banker and

Customer RelationshipCustomer Relationship

�� Contractual In NatureContractual In Nature

�� DebtorDebtor--creditorcreditor

�� Agent and principalAgent and principal

�� Fiduciary Fiduciary

�� Constructive trustee and beneficiary Constructive trustee and beneficiary

Contractual in nature Contractual in nature

JoachimsonJoachimson v Swiss Bank Corporation [1921] 3 KB 110v Swiss Bank Corporation [1921] 3 KB 110

The bank undertakes to receive money and to The bank undertakes to receive money and to

collect billscollect bills-- the bank borrows the proceeds and the bank borrows the proceeds and

undertakes to repayundertakes to repay

Bank Bank PertanianPertanian Malaysia v Malaysia v MohdMohd GazzaliGazzali MohdMohd IsmailIsmail

[1997][1997]-- ZalehaZaleha ZahariZahari JCJC

�� HC: Express term of the loan. A demand is absolute HC: Express term of the loan. A demand is absolute

necessity as stipulated in the agreement.necessity as stipulated in the agreement.

DebtorDebtor--Creditor RelationshipCreditor Relationship

�� Foley v Hill (1848] 2 HL Foley v Hill (1848] 2 HL CasCas 28 28

�� The trade of a banker is to receive money and use it as if The trade of a banker is to receive money and use it as if

it were his own, he becoming a debtor to the person who it were his own, he becoming a debtor to the person who

has lent or deposited with him the money to use as his has lent or deposited with him the money to use as his

own.own.

3. Agent and Principal 3. Agent and Principal

RelationshipRelationship

�� Customer gives the banker a mandate (account) Customer gives the banker a mandate (account)

to do certain acts in regards to his to do certain acts in regards to his

account/permit any other person to do such an account/permit any other person to do such an

act.act.

�� E.gE.g Standing OrdersStanding Orders

�� Making remittancesMaking remittances

4. Fiduciary Relationship4. Fiduciary Relationship

�� Banker as trustee over trust funds.Banker as trustee over trust funds.

�� Equity imposes a duty on a bank not to take Equity imposes a duty on a bank not to take

undue advantage over a customerundue advantage over a customer

�� Woods v Martin Bank Ltd & Woods v Martin Bank Ltd & AnorAnor [1959][1959]

�� Avoid conflict of interestAvoid conflict of interest

5. Constructive Trustee and 5. Constructive Trustee and

beneficiary Relationshipbeneficiary Relationship
�� Banker is subject to constructive trustBanker is subject to constructive trust-- look at look at

the breach and liabilitythe breach and liability

�� See Barnes v See Barnes v AddyAddy (1874)(1874)

�� The bank offered assistanceThe bank offered assistance

�� Had actual or constructive knowledgeHad actual or constructive knowledge

�� There was dishonest and fraudulent design or There was dishonest and fraudulent design or
intentionintention