Disputes Between Two Brothers Regarding a Business Partnership

CategoriesTrade, Business & All Things Money [717]

Fatwa ID: 06893

 

Answered by: Maulana Abdoullah Limvoonheek

 

Question:

 

We, two brothers married to two sisters, came to England in 1997. I am the eldest and was told by elders to keep my younger brother and his wife with me for financial savings. We moved to a council house and later I bought another house and moved there. Later bought the council house and a few years later sold that and bought another and rented while living in one house. Until then we both were working and had a joint account and joint spending instead of counting every penny with our brother. No agreement was made verbally or in writing of the partnership. Then in 2006 decided to be separated. I as an elder brother gave choice to my brother to choice of the house to move in. The house he moved in had a capital of £140000.00and mine had £100000.00 (approximately). We separated our joint account. (And my share in the shop was £30-40000.00) thus it looks almost even for both of us.

 

While we were together I opened a shop with someone at 50% partnership as my means of work with £900. Same time my brother had full opportunity and was told by me to open a business. He chose to learn a skill and worked as a self-employed which I helped him to be able to do. Later he bought a new car for rental which was stolen and I had to pay £25000.00 on his behalf. A few years later my brother opened another business which I had no involvement in and he suffered a big loss and became self-employed again. All these years until now we had our own houses, own earnings and spending and did not know any financial matters of each other.

 

On the other hand, I’m still in the same partnership with my business partner. Our business has not been very successful but we’re content and our needs are fulfilled. We kept our wages to a low minimum to save and invest in property. (A way of saving). We bought a house(in the UK)and commercial property in Pakistan and all rental income went back into the same property for the last 20-odd years. On the other side, with profits from the shop, we extended our business and bought a warehouse and stock which worth almost £400000.00.

 

My brother now claims that he has an equal share with me in everything. (Shop and property).

 

On his insistence, I agreed to give him 50% of my share until 2007 when we separated.

 

My brother asked someone he was told that since we separated (2007) the shop wasn’t divided (rather it wasn’t announced verbally, it was also not announced in the first place as it was an accidental or circumstantial partnership) therefore my brother has a right of 50%in my shop and in property I bought/invested as my earnings of looking after/running business.

 

He never worked/managed in my business. I was solely responsible for the loss and profit of day-to-day activities.

 

In today’s world, there are two business models of 50 -50 partnerships.  1- all partners have equal time and capital and 2 one capital and other time.

 

Does my brother own 50 with me in the shop or not?

 

Is he my partner in my savings-bought properties?

 

Or we were until 2007 when we separated?

 

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

Your brother has nothing to do with your wealth. As you mentioned there was no agreement between you and your brother and there was no contribution on his side. By you looking after him it was only your Ihsan (kindness and favour) you did upon him which is good and will be rewarded.

 

Your brother has no right to claim any of your belongings. Make sure every contract is written and signed in the presence of the witness.

 

We request that you take the matter to an elder of the family to resolve the matter together with a reliable Aalim to avoid any dispute with your brother.

 

 

Only Allah (عز و جل) knows best.

Written by Maulana Abdoullah Limvoonheek

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

 

 

 

Reference:

وَاَحۡسِنُوۡا  ۛۚ اِنَّ اللّٰهَ يُحِبُّ الۡمُحۡسِنِيۡنَ

Surah Baqarah V195

 

 

أما شركة العقود فأنواع ثلاثة شركة بالمال وشركة بالأعمال وكل ذلك على وجهين مفاوضة وعنان كذا في الذخيرة وركنها الإيجاب والقبول وهو أن يقول أحدهما شاركتك في كذا وكذا ويقول الآخر قبلت كذا في الكافي ويندب الإشهاد عليها كذا في النهر الفائق وشرط جواز هذه الشركات كون المعقود عليه عقد الشركة قابلا للوكالة كذا في المحيط وأن يكون الربح معلوم القدر فإن كان مجهولا تفسد الشركة وأن يكون الربح جزءا شائعا في الجملة لا معينا فإن عينا عشرة أو مائة أو نحو ذلك كانت الشركة فاسدة كذا في البدائع وحكم شركة العقد صيرورة المعقود عليه وما يستفاد به مشتركا بينهما كذا في محيط السرخسي

(الفتاوى الهندية 2/301-302)

 

 

ولو شرطا العمل عليهما جميعا صحت الشركة وإن قل رأس مال أحدهما وكثر رأس مال الآخر واشترطا الربح بينهما على السواء أو على التفاضل فإن الربح بينهما على الشرط والوضيعة أبدا على قدر رءوس أموالهما

(الفتاوى الهندية 2/320)

 

 

 

 

 

 

 

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