Yahya related to me from Malik from Zayd ibn Aslam from Ata ibn
Yasar that Abu Rafi, the mawla of the Messenger of Allah, may Allah
bless him and grant him peace, said, "The Messenger of Allah, may
Allah bless him and grant him peace, borrowed a young camel and then
the camels of sadaqa came to him." Abu Rafi said, "He ordered me to
repay the man his young camel. I said, 'I can only find a good camel
in its seventh year in the camels.' The Messenger of Allah, may Allah
bless him and grant him peace, said, 'Give it to him. The best of
people are those who discharge their debts in the best manner.' "
Muwatta Malik Book 31, Hadith 90
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Malik related to me from Yahya ibn Said from Abu Bakr ibn Muhammad ibn Amr ibn Hazm from Umar ibn Abdal-Aziz from Abu Bakr ibn Abd ar-Rahman ibn al-Harith ibn Hisham from Abu Hurayra that the Messenger of Allah, may Allah bless him and grant him peace, said, "If anyone goes bankrupt, and a man finds his own property intact with him, he is more entitled to it than anyone else."
Malik spoke about a man who sold a man wares, and the buyer went bankrupt. He said, "The seller takes whatever of his goods he finds. If the buyer has sold some of them and distributed them, the seller of the wares is more entitled to them than the creditors. What the buyer has distributed does not prevent the seller from taking whatever of it he finds. It is the seller's right if he has received any of the price from the buyer and he wants to return it to take what he finds of his wares, and in what he does not find, he is like the creditors."
Malik spoke about some one who bought spun wool or a plot of land, and then did some work on it, like building a house on the plot of land or weaving the spun wool into cloth. Then he went bankrupt after he had bought it, and the original owner of the plot said, "I will take the plot and whatever structure is on it." Malik said, "That structure is not his. However, the plot and what is in it that the buyer has improved is appraised. Then one sees what the price of the plot is and how much of that value is the price of the structure. They are partners in that. The owner of the plot has as much as his portion, and the creditors have the amount of the portion of the structure."
Malik said, "The explanation of that is that the value of it all is fifteen hundred dirhams. The value of the plot is five hundred dirhams, and the value of the building is one thousand dirhams. The owner of the plot has a third, and the creditors have two-thirds."
Malik said, "It is like that with spinning and other things of the same nature in these circumstances and the buyer has a debt which he cannot pay. This is the behaviour in such cases."
Malik said, "As for goods which have been sold and which the buyer does not improve, but those goods sell well and have gone up in price, so their owner wants them and the creditors also want to seize them, then the creditors choose between giving the owner of the goods the price for which he sold them and not giving him any loss and surrendering his goods to him.
"If the price of the goods has gone down, the one who sold them has a choice. If he likes, he can take his goods and he has no claim to any of his debtor's property, and that is his right. If he likes, he can be one of the creditors and take a portion of his due and not take his goods. That is up to him."
Malik said about someone who bought a slave-girl or animal and she gave birth in his possession and the buyer went bankrupt, "The slave-girl or the animal and the offspring belong to the seller unless the creditors desire it. In that case they give him his complete due and they take it."
Muwatta Malik Book 31, Hadith 89 Next Hadith → Malik related to me from Humayd ibn Qays al-Makki that Mujahid said, "Abdullah ibn Umar borrowed some dirhams from a man, then he discharged his debt with dirhams better than them. The man said, 'Abu Abdar-Rahman. These are better than the dirhams which I lent you.' Abdullah ibn Umar said, 'I know that. But I am happy with myself about that.' "
Malik said, "There is no harm in a person who has borrowed gold, silver, food, or animals, taking to the person who lent it, something better than what he lent, when that is not a stipulation between them nor a custom. If that is by a stipulation or promise or custom, then it is disapproved, and there is no good in it."
He said, "That is because the Messenger of Allah, may Allah bless him and grant him peace, discharged his debt with a good camel in its seventh year in place of a young camel which he borrowed, and Abdullah ibn Umar borrowed some dirhams, and repaid them with better ones. If that is from the goodness of the borrower, and it is not by a stipulation, promise, or custom, it is halal and there is no harm in it."
Muwatta Malik Book 31, Hadith 91
Malik spoke about a man who sold a man wares, and the buyer went bankrupt. He said, "The seller takes whatever of his goods he finds. If the buyer has sold some of them and distributed them, the seller of the wares is more entitled to them than the creditors. What the buyer has distributed does not prevent the seller from taking whatever of it he finds. It is the seller's right if he has received any of the price from the buyer and he wants to return it to take what he finds of his wares, and in what he does not find, he is like the creditors."
Malik spoke about some one who bought spun wool or a plot of land, and then did some work on it, like building a house on the plot of land or weaving the spun wool into cloth. Then he went bankrupt after he had bought it, and the original owner of the plot said, "I will take the plot and whatever structure is on it." Malik said, "That structure is not his. However, the plot and what is in it that the buyer has improved is appraised. Then one sees what the price of the plot is and how much of that value is the price of the structure. They are partners in that. The owner of the plot has as much as his portion, and the creditors have the amount of the portion of the structure."
Malik said, "The explanation of that is that the value of it all is fifteen hundred dirhams. The value of the plot is five hundred dirhams, and the value of the building is one thousand dirhams. The owner of the plot has a third, and the creditors have two-thirds."
Malik said, "It is like that with spinning and other things of the same nature in these circumstances and the buyer has a debt which he cannot pay. This is the behaviour in such cases."
Malik said, "As for goods which have been sold and which the buyer does not improve, but those goods sell well and have gone up in price, so their owner wants them and the creditors also want to seize them, then the creditors choose between giving the owner of the goods the price for which he sold them and not giving him any loss and surrendering his goods to him.
"If the price of the goods has gone down, the one who sold them has a choice. If he likes, he can take his goods and he has no claim to any of his debtor's property, and that is his right. If he likes, he can be one of the creditors and take a portion of his due and not take his goods. That is up to him."
Malik said about someone who bought a slave-girl or animal and she gave birth in his possession and the buyer went bankrupt, "The slave-girl or the animal and the offspring belong to the seller unless the creditors desire it. In that case they give him his complete due and they take it."
Muwatta Malik Book 31, Hadith 89 Next Hadith → Malik related to me from Humayd ibn Qays al-Makki that Mujahid said, "Abdullah ibn Umar borrowed some dirhams from a man, then he discharged his debt with dirhams better than them. The man said, 'Abu Abdar-Rahman. These are better than the dirhams which I lent you.' Abdullah ibn Umar said, 'I know that. But I am happy with myself about that.' "
Malik said, "There is no harm in a person who has borrowed gold, silver, food, or animals, taking to the person who lent it, something better than what he lent, when that is not a stipulation between them nor a custom. If that is by a stipulation or promise or custom, then it is disapproved, and there is no good in it."
He said, "That is because the Messenger of Allah, may Allah bless him and grant him peace, discharged his debt with a good camel in its seventh year in place of a young camel which he borrowed, and Abdullah ibn Umar borrowed some dirhams, and repaid them with better ones. If that is from the goodness of the borrower, and it is not by a stipulation, promise, or custom, it is halal and there is no harm in it."
Muwatta Malik Book 31, Hadith 91