Ruling on repaying a debt with an increase due to delay
Machine translationRead the Arabic original
The first message in this episode is from Shaykh 'Abd al-'Aziz. A message was received for the program from our brother: Hasan Ahmad from Jizan. Our brother says in his message: Hasan and 'Ali, who are friends at work, agreed to fund a project to build a residential building. Under this agreement, 'Ali would fund the project to the extent of three hundred thousand riyals, on the condition that Hasan would repay this amount to 'Ali annually from his personal income. Hasan voluntarily promised 'Ali, without any condition or restriction, to give him the rent of three apartments in the building as a gift from him to 'Ali. Then the project was completed, and the amount increased from three hundred thousand riyals to four hundred thousand riyals.
Is the amount that Hasan—the debtor—undertook to pay to 'Ali—the creditor—from the rent of the three apartments, given voluntarily as a gift, lawful, or does it contain some element of riba? Please inform us about this matter. May Allah reward you with good.
Answer: In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, and may Allah send prayers and blessings upon the Messenger of Allah, and upon his family and his Companions, and upon those who follow his guidance.
To proceed: What appears from the situation of the two individuals is that this money which Hasan pays to 'Ali is in exchange for his being given time and delay in his share of the building's expenses. Even if they call it voluntary or a gift, Allah knows what is in hearts. This money was not paid for the sake of friendship or kinship; rather, it was paid for this work that 'Ali did, which is that he spent on the building until it was completed. Then the matter between them would be as they stipulated, but Hasan would give him these gifts in exchange for this work, as he says.
The point is that this appears to be riba; because he only lent him for the sake of this gift which they claim is a gift, but it is not a gift in reality. Rather, it is a benefit for delaying him and giving him time. And Allah, Glorified and Exalted is He, knows best.
The presenter: May Allah reward you with good.
Is the amount that Hasan—the debtor—undertook to pay to 'Ali—the creditor—from the rent of the three apartments, given voluntarily as a gift, lawful, or does it contain some element of riba? Please inform us about this matter. May Allah reward you with good.
Answer: In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, and may Allah send prayers and blessings upon the Messenger of Allah, and upon his family and his Companions, and upon those who follow his guidance.
To proceed: What appears from the situation of the two individuals is that this money which Hasan pays to 'Ali is in exchange for his being given time and delay in his share of the building's expenses. Even if they call it voluntary or a gift, Allah knows what is in hearts. This money was not paid for the sake of friendship or kinship; rather, it was paid for this work that 'Ali did, which is that he spent on the building until it was completed. Then the matter between them would be as they stipulated, but Hasan would give him these gifts in exchange for this work, as he says.
The point is that this appears to be riba; because he only lent him for the sake of this gift which they claim is a gift, but it is not a gift in reality. Rather, it is a benefit for delaying him and giving him time. And Allah, Glorified and Exalted is He, knows best.
The presenter: May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.