Claim No. CFI 048/2025

THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS

IN THE COURT OF FIRST INSTANCE

BETWEEN

ALIZZ ISLAMIC BANK S.A.O.C

Claimant

and

ALEF CAPITAL B.S.C.(C) (FORMERLY INVESTRADE COMPANY B.S.C (C))

Defendant

ORDER WITH REASONS OF H.E. JUSTICE RENE LE MIERE

UPON the Case Management Order of H.E. Justice Rene Le Miere dated 22 June 2026 (the “CMO”)

AND UPON paragraphs 12 and 13 of the CMO requiring the parties to agree the List of Issues on which expert evidence is to be provided and, failing such agreement, inform the court of their respective positions by way of written submissions

AND UPON the parties filing their respective written submissions on 11 August 2026

AND UPON review of the Rules of the DIFC Courts (“RDC”)

IT IS HEREBY ORDERED THAT:

1. The List of Issues for expert evidence shall include the two disputed issues in the form set out below:

2. Save as so varied, the List of Issues shall stand.

3. Costs of this dispute concerning the List of Issues shall be costs in the case.

Issued by:
Hayley Norton
Assistant Registrar
Date of issue: 20 August 2026
At: 11am

A. Introduction

1. Paragraph 12 of the Case Management Order dated 22 June 2026 required the parties to agree the list of issues on which expert evidence in the field of Shari'ah law is to be provided. Paragraph 13 provided that, failing agreement, the parties were to inform the Court of their respective positions, following which the Court would determine the issues on which expert evidence is to be given.

2. The parties have agreed on most of the proposed issues. Two issues remain in dispute. The Defendant contends that both issues should be included in the List of Issues. The Claimant opposes their inclusion in the form proposed by the Defendant.

3. The parties are agreed that expert evidence is confined to matters of Shari'ah law and any applicable AAOIFI standards. They are also agreed that the construction of the Agreement, findings of fact, and the ultimate issues of breach, causation and liability are matters for determination by the Court.

B. Applicable Principles

4. The purpose of expert evidence is to assist the Court on matters falling outside ordinary judicial knowledge. The expert's role is not to determine disputed facts, construe contractual provisions, or express opinions on the ultimate questions for the Court to decide.

5. In determining the appropriate List of Issues, the Court is concerned with whether the proposed issues arise from the parties' pleaded cases and whether they identify matters of Shari'ah law upon which expert assistance may reasonably be required.

6. Care must be taken to ensure that any issue framed for expert determination remains confined to questions of Shari'ah principle and does not trespass into questions of contractual construction or legal liability which are reserved to the Court.

C. Assessment

7. The first disputed issue, issue 11, concerns the Defendant's pleaded reliance upon agent banks and the extent to which a Wakil may perform a mandate through sub- agents. The Defence pleads the use of agent banks and the Claimant's knowledge of that structure. The Reply admits the use of agent banks but denies that the arrangementCommentHighlight relieved the Defendant of responsibility and alleges that the Defendant failed to ensure that the appropriate inquiries were undertaken. The subject therefore plainly arises from the pleadings.

8. The second disputed issue, issue 14, concerns the allocation of investment risk within a restricted wakalah structure and the distinction under Shari'ah between fault-based liability and a guarantee of capital or profit. That issue also emerges directly from the pleadings. The Defence relies upon principles said to place the risk of investment loss on the Muwakkil absent fault by the Wakil, while the Claimant relies upon the Defendant's alleged negligence, misrepresentation, breach of duty and contractual obligations.

9. The Court accepts that both matters concern recognised subjects of Shari'ah law and are capable of being assisted by experts.

10. The Court also accepts, however, that the Defendant's proposed wording risks inviting the experts to address questions more properly reserved for the Court, particularly those concerning the construction of the Agreement and the legal consequences of contractual interpretations.

11. The issues should therefore be reformulated to focus on the underlying Shari'ah principles and to avoid any suggestion that the experts are being asked to determine facts, construe the Agreement or express opinions on liability.

D. Determination

12. The Court determines that the disputed issues should be included in the List of Issues in the following form:

13. These formulations are appropriate because they confine the experts to their proper role. They do not invite the experts to construe the Agreement, determine disputed facts, decide whether the Defendant complied with its obligations, or express conclusions on causation or liability. Those matters are reserved to the Court. Instead, the issues require the experts to identify and explain the relevant principles of Shari'ah law and any applicable AAOIFI standards which may assist the Court in determining the issues arising in the proceedings.

14. As to issue 11, the pleadings raise questions concerning the Defendant's use of agent banks and the extent to which a Wakil may perform a mandate through sub-agents. The reformulated issue is directed solely to the Shari'ah principles governing delegation, and the duties and responsibilities arising from that relationship. It does not ask the experts whether the Defendant in fact discharged those duties. That remains a matter for factual determination at trial.

15. Regarding issue 14, the pleadings raise questions about the allocation of investment risk within a restricted wakalah structure and the distinction between fault-based responsibility and a guarantee of capital or profit. The reformulated issue addresses those underlying Shari'ah concepts without requiring the experts to opine on the proper construction of the Agreement, the validity of any contractual provision, or the Defendant's liability on the facts of the case.

16. The revised formulations will enable the experts to provide assistance on the relevant Shari'ah principles whilst preserving the proper distinction between expert evidence and judicial determination.

E. Order

17. The List of Issues for expert evidence shall include the two disputed issues in the form set out in paragraph 12 above.

18. Save as so varied, the agreed List of Issues shall stand.

19. Costs of this dispute concerning the List of Issues shall be costs in the case.