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Resolutions of Iftaa' Board

Resolution No.(3): “Ruling on Resorting to Arbitration to Settle Disputes between People”

Date Added : 02-11-2015

 

Resolution No.(3): "Ruling on Resorting to Arbitration to among Disputants” 

 

Praise be to Allah, The Lord of The Worlds; and may His Blessings and Peace be upon our Prophet Mohammad and upon all his Family and Companions.

The Board is of the view that arbitration is permissible in Sharia as has been indicated by the Noble Quran, the Sunnah (Prophetic tradition), and the practices of the Sahabah (companions).

The Noble Quran:

As regards disputing spouses, Allah Says (What means): “If ye fear a breach between them twain, appoint (two) arbiters, one from his family, and the other from hers; if they wish for peace, God will cause their reconciliation: For God hath full knowledge, and is acquainted with all things.“ {An-Nissa`/35}.

The Sound Sunnah:

Abu Shoraih reported that the Prophet (PBUH) said to him: “Allah is the Hakam (arbiter), why do people call you Abu al-Hakam? He said: Whenever my people have a dispute over any matter, they would call me to settle that dispute, and both parties would be pleased with my verdict. The Prophet said: well done. What is the name of your oldest son? He said: Shoraih. The Prophet said: Then you are Abu Shoraih!! “ {An-Nassa`e}. This Hadith indicates that the Prophet (PBUH) commended and permitted arbitration when he approved Abu Shoraih`s act by saying to him {Well done}.

Moreover, it was reported that the Prophet (PBUH) said: “Whoever arbitrates between two persons who come to him willingly, but passes an unjust verdict is cursed. “

The Righteous Companions (May Allah Be Pleased with all of them) used to observe arbitration among one another in case of a dispute, as narrated that Umar bin al-Khatab (May Allah Be Pleased with him) sent a nomad to Shoraih for arbitration before appointing the latter as a judge.

Furthermore, it was narrated that Uthman Bin Affan and Talhah sought the arbitration of Jobair Bin Mote`im who wasn`t a judge yet, and they were pleased with his judgment, and this matter occurred before the honorable companions.

An arbiter must adhere to legal principles and procedures in the following: hearings, proceedings, and issuance of verdict, in order to observe justice. He must allow every litigant to plead his case and present arguments and pieces of evidence. He must start by listening to the plaintiff and consider his pieces of evidence, then listen to the defendant. He must also listen to witnesses in case there was a need for doing so. All of this must be conducted in the arbitration council. An arbiter mustn`t  be biased because arbitration is a form of the judiciary, so he must resort to neutrality, and he may not pass a verdict without a sound reason such as a confession, or evidence, or else. He must also consider the minutest details of the case and observe justice when issuing the verdict. And Allah Knows Best.

The Board of Iftaa'

 

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Summarized Fatawaa

I have a question regarding the deferred portion of the dowry (Mahr)*. Is the wife entitled to it only upon divorce or she can claim it even if divorce hasn`t taken place? Moreover, does she have the right to claim this portion after death of husband, even if he didn`t divorce her before that?

All perfect praise be to Allah the Lord of The Worlds. May His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
In the marriage contract, it is recorded that the deferred portion of the dowry is due upon divorce or death, whatever comes first. If divorce took place first then the woman is entitled to it and if the husband died this amount must be paid from his estate. On the other hand, if the woman died then the husband becomes liable for this portion and it becomes part of the woman`s estate. We advise every husband to give this portion to his wife while alive because it is a right of hers. And Allah The Almighty Knows Best.
* In Islam, a Mahr is the obligation, in the form of money or possessions paid by the groom, to the bride at the time of Islamic marriage (payment also has circumstances on when and how to pay). While the mahr is often money, it can also be anything agreed upon by the bride such as jewelry, home goods, furniture, a dwelling or some land. Mahr is typically specified in the marriage contract signed upon marriage.

Is it permissible for a man to lie to his wife? Is it permissible for a man to abandon his wife to work in Saudi Arabia, without her approval, although he is wealthy?

All perfect praise be to Allah, the Lord of the Worlds; may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
The Messenger of Allah commanded men to treat women kindly, so marital problems should be solved through understanding, and whatever causes harm to a woman is forbidden. And Allah The Almighty Knows Best.

There is a car dealership, and their method of selling is as follows: The customer pays the full price of the car, the car is registered in their name, and another contract is written in which the company commits to refunding the full price of the car to the customer after one year from the purchase date. What is the Islamic ruling on this transaction?

As for purchasing the car, paying its price, and owning it, this is a valid sale with no issue. However, the condition of refunding the price — whether the car is returned to the seller or not — is an invalid condition that nullifies the entire contract. Therefore, this transaction is invalid and not permissible. And Allah Knows Best.

I am a wholesale gold trader. My clients are retail gold shop owners. I sell them gold jewelry and ornaments on credit, and they repay me in weekly installments over a period of two months or more. The payments are made in cash for the labor charges and for the gold they owe me. In return, they may give me either cash or used gold.
 

It is not permissible to sell gold or silver on an installment basis or with a deferred payment; rather, immediate exchange is required. The Messenger of Allah (PBUH) said: "Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt, like for like, hand to hand. Whoever gives more or asks for more has engaged in usury; the giver and receiver are the same in this regard." (Muslim). Additionally, the weight of the gold must be equal when exchanging new for used; otherwise, it involves usury. The solution is to buy the used gold with cash, then sell the new gold for cash as well. However, payment must be made at the time of the transaction in both cases. Alternatively, one could take the used gold with the intention of refining it, reshape it into a new form, or repair it, then take a fee for the workmanship or repair. And Allah Knows Best

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