Is it obligatory for a debtor who is not in financial distress but is delaying payment to return anything in addition to the debt, and does the judge have the authority to rule on this?

The questioner : Is it obligatory for a debtor who is not in financial distress to return anything in addition to the debt...

The Shaykh : I mean, if he borrowed, for example, a thousand, is he required to return a thousand dinars?

The questioner : He did not demand them, meaning he delayed the payment.

The Shaykh : I mean, is it two questions or one question:The questioner : Is it obligatory for a debtor who is not delaying to return...

The Shaykh : It seems you are asking about compensation for the delay? If we look at the word "obligatory" (must), because the word "must" implies obligation, the answer is no. Rather, this is riba (usury or interest). However, he may pay the creditor more than what he took from him; this is among the noble qualities of character. In other words, if I borrow a thousand from you for a set term, and you pay it back at the term, you give me a thousand and one hundred. It is permissible for you to take the one hundred, and it is a virtue for me to offer it to you willingly, because this is what the Messenger of Allah (peace and blessings be upon him) did. He mentioned this occasion and said: . He said this hadith on the occasion that the Messenger of Allah (peace and blessings be upon him) had borrowed a camel from a man, and the man came to ask for a camel in return. So he (peace be upon him) said to those around him, who were from the treasury of the public funds: . They went and returned to him, saying, "O Messenger of Allah, we found nothing but a camel for carrying loads." He said: . This is regarding the debtor who fulfilled what was due to him at the specified time. But if he delayed and harmed the creditor because of the delay, it is more fitting for him, and more fitting, that he increase in the repayment. But we do not say it is obligatory for him, because in that case it would become riba (usury or interest). The difference between riba (usury or interest) and what the Messenger of Allah (peace and blessings be upon him) referred to in his saying is that riba (usury or interest) is stipulated. I mean, God forbid, I borrow a thousand from you on the condition that I will pay you back a thousand and one hundred. This is the very essence of riba (usury or interest). But if I borrow a thousand from you, and when I give you a thousand, you do not expect an increase, and I give you an increase willingly, then this is among the noble qualities of character.

The questioner : The issue is whether the judge should rule against the debtor as a punishment for the delay. Is compensation permissible?

The Shaykh : Yes, these are modern solutions... regarding interest-based transactions, please proceed.