What is the ruling if a non-Muslim (*dhimmi*) stands guarantor (*kafeel*) for another non-Muslim's debt of wine, and then the creditor or the principal debtor converts to Islam?
Chapter on Guarantee (Daman)
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
If the creditor (*al-makful lahu*) or the principal debtor (*al-makful anhu*) converts to Islam, both the guarantor and the principal debtor are absolved from the obligation. The reasoning is that the object of the guarantee (wine) is no longer legally binding upon the converted party, similar to the situation if the principal debtor had been a Muslim prior to the guarantee. When the principal debtor is absolved, the guarantor is also absolved, mirroring the effect of debt repayment or forgiveness. Furthermore, if the creditor converts, both parties are absolved, just as if the principal debtor had converted.
Supporting text
Abu Hanifa holds that if the principal debtor converts to Islam, neither party is absolved, and they remain liable for the value of the wine. This is because the obligation existed previously, and neither its removal nor its fulfillment occurred, nor did the creditor perform an act that would nullify the right, thus the original obligation remains intact.