Partnership Dispute.

Answered according to Hanafi Fiqh by Askimam.org

 

My masslaa (partnership dispute) as under:

We started a whole sale partnership business with one of our clients in South Africa in 2009.

Nothing was in written & we both by trusting each other started this partnership, our agreement was that our investment is carpet which we bring in without any profit on top (on cost prices) & their investment was to pay for all local/daily routine charges & profit we share 50% equally. Also, freight & local duty will be shared equally as an expense.

My visa was only for 1 month & they offered me to get it extended with one of their known friend but even after 2 or 3 months, I didn’t get any visa extension. Once i got my passport, there was only choice left for me to come back because he told me that I can get new visa from South African embassy in Islamabad Pakistan. I so tried so many times for new visa but in vain every time.

When I spent few months in South Africa, I got few new business clients through Internet. Due to the problem of visa which is stated above, then I started to supply carpets directly from Pakistan to new South African clients. 

At the time of initial shipments to new South African clients, my business partner didn’t show any documentation records till yet about partnership stock. But I showed some initial documentation records to him and I asked him the details of partnership inventory/stock but he didn’t showed any partnership stock record at that time & until now.

Recently, I offered him to take all profits from the partnership stock (bcoz I wanted to get settled down with him in best possible/acceptable way) rather than 50% shared equally which is agreed before. The amount of direct shipments to new South African clients, I gave 40% share (bcoz in the past he agreed that instead of 50%, we wants 40% for himself) of profit with all documentation records. he again did not accepted our offer & now he says that he will not pay for balance of cost prices.

Instead, he wants to write OFF all of our stock he is holding up, then he wants us to do business with him like before 2009 this partnership started. 

 

Questions:

1. After all details, I want to know according to the rules of Shariah that whether the demands of both parties are correct or not?

2. Also, does he has right to demand/ask for his share from our business with other people in South Africa. Keeping in mind that, he did not invested any amount in our business? Only by holding up our stock in his place, he is asking for his share?

3. How can we force him to obey Shariah law, so we can have a solution mutually with No Claims on both sides in future? I mean is there any Hadith or severe punishment in Shariaa that we will agree to settle down with us.? 

I want that even in life here after also (Rozee Qayamat), we should not be claiming any thing from each other? 

Was Salam,

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

 

In order for us to answer your query, we require some clarification with regards to the partnership in reference. Explain the exact structure of the business and what is exactly each partners role in the business? What is the exact investment of each partner? What is each partner providing?

You have mentioned; “Recently, I offered him to take all profits from the partnership stock (bcoz I wanted to get settled down with him in best possible/acceptable way) rather than 50% shared equally which is agreed before. The amount of direct shipments to new South African clients, I gave 40% share (bcoz in the past he agreed that instead of 50%, we wants 40% for himself) of profit with all documentation records. he again did not accepted our offer & now he says that he will not pay for balance of cost prices.”

What do you mean by this? Have you started a new business? Is it with the same clients or with different clients?

Please forward your response to [email protected] We would advise you to respond to us in Urdu, so we can better comprehend the matter and address it accordingly.

 

 

And Allah Ta’āla Knows Best

Abdullah Ghadai

Student Darul Iftaa
Michigan, U.S.A 

Checked and Approved by,
Mufti Ebrahim Desai.

 

 

 

 

 

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