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Penalty for Late Fees

Answered according to Hanafi Fiqh by Mahmoodiyah

Question:

Assalamualaikum

 Q1-A Muhtamim of a Madrasah also made this rule that if a child’s fees is not paid on time then there will be a Five pounds fine is this permissible?

Q2-If the above is not permissible then please explain in detail why its not permissible?

Q3-What is the reference to answer?  Jazakumullah  Wassalaam


Answer:

 

                  

The rule that was made by the principal of the madrassah is not correct. A specific amount of money was required to be paid by the student; if due to some reason the student delayed in submitting the amount, then enforcing a monetary penalty (fine) on the student will fall under the ruling of interest. Therefore, taking an increase over the actual sum of money that was stipulated will not be permissible, since the increase sum falls under the ruling of interest.  (Buhoothun fee Qadhaayaa Fiqhiyyah Mu’aasarah, Page 9, 10, 35-36). 

And Allah Ta’ala knows best

Nezaam bin Yahya Ali

Attested to as correct by:

Mufti Muhammad Ashraf

Darul Iftaa

Jameah Mahmoodiyah

Springs

05 August 2004

18 Jumaadul Ukhraa 1425

This answer was collected in 2012 from the website of Jameah Mahmoodiyah, South Africa. The original website no longer exists.

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