Investment claims in a partnership (shirkah)

Answered according to Hanafi Fiqh by Fatwa-TT.com
Question:

Can they offset other peoples’ money against what (if any) money I might owe them. Given that they are fully aware that the funds do not belong to me and have come directly from the investors to them. I was simply an introducer.

In offsetting are they scuppering the amanaat of others.

Your urgent reply would be greatly appreciated.

Answer:

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

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

The relationship between the investors and the investment company is shirkah (partnership). As such, the shari’ah laws of partnership will govern the situation. Accordingly, the investors have a direct claim from the investment company for their shares and profits. By introducing investors in the investment schemes, you do not become a legal partner. The investors have no claim from you in their shares and its profits. If your partner have a claim against you, that is a personal issue and not related to the investors investments.

It is incorrect for the investment company to withhold investors’ profits in lieu of a claim against you. The investment company will be guilty of misdirecting their claim to the wrong people and depriving them of their right, which is a major sin. If the company deprive the investors of their right, they will be contaminating their Halal funds with Haram and depriving themselves of the Barakah of their Halal funds.

 

And Allah Ta’āla Knows Best

Mufti Arshad Ali

Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)

www.fatwa-tt.com /www.jaamia.net

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