Question:
Assalamualaikum wa rahmatullahi wa barakatuhu
Muhtaram Mufti Sahib
We make Du’aa you are well.
Your esteemed ruling on the following matter is required:
- ABC is a company of travel agents offering Hajj packages. They have employed Zaid as their overseas agent to secure charter flights.
- ABC required funding, so they approached XYZ, a financial institution, to provide capital. A Mushaarkah agreement was entered into between ABC and XYZ.
- After this agreement was entered into, ABC requested XYZ to release its capital contribution to Zaid.
- It is alleged that Zaid did not perform his duties, as a result of which a huge loss was suffered.
- The ‘Shari’ah Adviser’ of XYZ ruled that the loss has to be borne solely by ABC.
- A Fatwaa was issued against this ruling, on the basis that, by implication, Zaid became the employee of the partnership, hence the loss he was instrumental in must be sustained by both partners. Hence both ABC and XYZ must jointly bear the loss pro rata.
Your esteemed view on this issue would be most appreciated.
Request for Du’aas.
Jazakallah and Wassalaam
Answer:
الجواب حامدا و مصليا
According to our finding, the ruling passed by the Shari’ah advisor of XYZ is correct due to Zaid’s negligence. Zaid was employed by ABC and is working on their behalf. Only after a request from ABC, did XYZ release its capital to Zaid. Zaid was negligent in his duties which resulted in a huge loss. Therefore, this loss will have to be borne by ABC or Zaid only. XYZ will not bear any loses.
(Ad-Durrul Mukhtaar, Vol. 3, Page 377-379, Durarul Hukkaam Sharhu Majallitil Ahkaam, Vol. 3, Page 600)
And Allah Ta’ala knows best
Mufti Muhammad Ashraf
Darul Iftaa
Jameah Mahmoodiyah
Springs
24 May 2005
15 Rabee’uth Thaani 1426