Fatwa ID: 07158
Answered by: Maulana Safraz Mohammad
Question:
I was running a used car business and offered my friend an opportunity to invest in it, promising him some returns after a year. Initially, we agreed that I would use his money for the business without formal accounting and return 50% to 100% profit, depending on the business’s performance. However, due to unforeseen circumstances, we extended the agreed period. Unfortunately, the business suffered significant losses, and I lost thousands.
I couldn’t repay his investment on the agreed date along with the promised returns. He graciously gave me more time but insisted on receiving his original investment plus a minimum of 50% profit, as we had agreed. I then took up a job to earn the money and managed to pay him back his investment plus 50%.
Although I had losses, he justified his demand by explaining that he could have used his money elsewhere to earn profits and that inflation had reduced the value of his money over the year and a half. Despite feeling uneasy about this arrangement, especially from an Islamic perspective, I honoured our agreement and paid him back. Since giving him the money, I have felt that something was not right and that it might have been forbidden in Islam, but I was unsure what to do.
Recently, my friend reached out to me after watching a video on this topic. He now feels uncertain about whether the additional return he received was halal or forbidden interest. We are both concerned about ensuring our income remains blessed and free from any forbidden elements. Please advise on this matter.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Based on the transaction description given above this business agreement that was made between you and your friend is not broken and is not permissible. This kind of transition is called a mudārabah transaction, this means that two parties come together, one giving the capital and the other will do business with the money from the capital. For this to be permissible the profit earned must be divided between the two on a fixed percentage base. In the scenario mentioned above this was not done hence the agreement is not permissible.
In this case, the capital must be returned to the owner and if there is a profit it will go to the capital owner and the second party will be given payment in proportion to the work that was done ( market value).
However, in your case there was no profit earned so after returning the capital to the owner there is nothing more there for him to claim. The fifty percent profit he claims is not correct and not permissible and will be considered Interest (Riba). He should return that back to you.
«الجوهرة النيرة على مختصر القدوري» (1/ 292):
«قَوْلُهُ: وَمِنْ شَرْطِهَا أَنْ يَكُون الرِّبْحُ بَيْنَهُمَا مُشَاعًا لَا يَسْتَحِقُّ أَحَدُهُمَا مِنْهُ دَرَاهِمَ مُسَمَّاةً) لِأَنَّ شَرْطَ ذَلِكَ يَقْطَعُ الشَّرِكَةَ لِجَوَازِ أَنْ لَا يَحْصُلَ مِنْ الرِّبْحِ إلَّا تِلْكَ الدَّرَاهِمُ الْمُسَمَّاةُ قَالَ فِي شَرْحِهِ: إذَا دَفَعَ إلَى رَجُلٍ مَالًا مُضَارَبَةً عَلَى أَنَّ مَا رَزَقَ اللَّهُ فَلِلْمُضَارِبِ مِائَةُ دِرْهَمٍ فَالْمُضَارَبَةُ فَاسِدَةٌ فَإِنْ عَمِلَ فِي هَذَا فَرَبِحَ، أَوْ لَمْ يَرْبَحْ فَلَهُ أَجْرُ مِثْلِهِ وَلَيْسَ لَهُ مِنْ الرِّبْحِ شَيْءٌ؛ لِأَنَّهُ اسْتَوْفَى عَمَلَهُ عَنْ عَقْدٍ فَاسِدٍ بِبَدَلٍ فَإِذَا لَمْ يُسَلِّمْ إلَيْهِ الْبَدَلَ رَجَعَ إلَى أُجْرَةِ الْمِثْلِ وَلَيْسَ لَهُ مِنْ الرِّبْحِ شَيْءٌ كَمَا فِي الْإِجَارَةِ قَالَ أَبُو يُوسُفَ: لَهُ أَجْرُ مِثْلِهِ لَا يُجَاوِزُ بِهِ الْمُسَمَّى.
وَقَالَ مُحَمَّدٌ: لَهُ الْأَجْرُ بَالِغًا مَا بَلَغَ وَعَنْ أَبِي يُوسُفَ أَنَّهُ إذَا لَمْ يَرْبَحْ لَا أَجْرَ لَهُ؛ لِأَنَّ الْمُضَارَبَةَ الْفَاسِدَةَ لَا تَكُونُ أَقْوَى مِنْ الصَّحِيحَةِ وَمَعْلُومٌ أَنَّ الْمُضَارِبَ فِي الصَّحِيحَةِ إذَا لَمْ يَرْبَحْ لَمْ يَسْتَحِقَّ شَيْئًا فَفِي الْفَاسِدَةِ أَوْلَى
«حاشية ابن عابدين = رد المحتار ط الحلبي» (4/ 326):
«(وَالرِّبْحُ فِي الشَّرِكَةِ الْفَاسِدَةِ بِقَدْرِ الْمَالِ، وَلَا عِبْرَةَ بِشَرْطِ الْفَضْلِ) فَلَوْ كُلُّ الْمَالِ لِأَحَدِهِمَا فَلِلْآخَرِ أَجْرُ مِثْلِهِ كَمَا لَوْ دَفَعَ دَابَّتَهُ لِرَجُلٍ لِيُؤَجِّرَهَا وَالْأَجْرُ بَيْنَهُمَا، فَالشَّرِكَةُ فَاسِدَةٌ وَالرِّبْحُ لِلْمَالِكِ وَلِلْآخَرِ أَجْرُ مِثْلِهِ، وَكَذَلِكَ السَّفِينَةُ وَالْبَيْتُ، وَلَوْ لَمْ يَبِعْ عَلَيْهَا الْبُرَّ فَالرِّبْحُ لِرَبِّ الْبُرِّ وَلِلْآخَرِ أَجْرُ مِثْلِ الدَّابَّةِ، وَلَوْ لِأَحَدِهِمَا بَغْلٌ وَلِلْآخَرِ بَعِيرٌ فَالْأَجْرُ بَيْنَهُمَا عَلَى مِثْلِ أَجْرِ الْبَغْلِ وَالْبَعِيرِ نَهْرٌ»
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Only Allah تعالي Knows Best
Written by Maulana Safraz Mohammad
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
