What is the ruling when a bankrupt individual sells an item, receives the price, and the buyer later voids the sale due to a defect, option exercise, or price dispute, and the original asset is found?

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 2 · Bab 1

Open in Qurani

Primary text

If the bankrupt sold an item, received the price, and the buyer subsequently returns the item due to a defect, revocation based on option (*khiyar*), dispute over the price, or similar reasons, and the original asset is found, the bankrupt takes possession of it. This is because the voiding of the sale dissolves the bankrupt's ownership of the price, just as the buyer's ownership of the sold item is dissolved. If the bankrupt had already disposed of the received price, the buyer shares with the general creditors in the remaining assets.