THE RELIGIOUS COURTS’ AUTHORITY TO ADJUDICATE DISPUTES BASED ON PRINCIPAL AGREEMENTS AND SECURITY AGREEMENTS DUE TO DIFFERENT CHOICE OF LAW

Abstract

A Sharia Banking Agreement is often secured by the Deed Granting Mortgage. These two agreements are different types and have different burden of proof. However, the existence of Sharia Banking Agreements as principal agreements is not often secured by the choice of law under Deed Granting Mortgage. This research will elevate the position of the legal burden of proof between Sharia Banking Agreements and Deeds of Granting Mortgage along with the legal consequences due to different legal choices between the Sharia Banking Agreement and Deed Granting Mortgage based on a study of Court Decision No.499/Pdt.G/2021/PA YK in the Religious Court of Yogyakarta. This research applied a normative approach with the literature study method based on the court decision and regulation as primary legal materials and used secondary legal materials including books, journals, and other legal works that are related to the topic. From this research obtained that between Sharia Banking Agreement and the Deed Granting Mortgage that secures have different types of agreements and the different burden of proof. Although Deed Granting Mortgage is an additional agreement it must secure the principal agreement which is Sharia Banking Mortgage. Based on Court Decision No.499/Pdt.G/2021/PA YK, whereas the Deed Granting Mortgage regulated on the authority of the District Court in the event of a dispute but because the principal agreement is Sharia Banking Agreement, it has authority from Religious Court to examine and settle disputes.