What is the ruling regarding the seller's right to reclaim if the item returns to the bankrupt buyer's ownership after it had initially left his possession?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If the item returns to the bankrupt buyer's ownership after it had initially left his possession, there are three scholarly views. The first view maintains that the seller has the right to reclaim because of the prophetic report (khabar) and since the seller finds the essence of his property free from the rights of others, resembling the situation as if he had never sold it. The second view states that the seller cannot reclaim because this ownership did not transfer to him from the original seller, thus he does not have the right to annul the transaction. These two views are acknowledged by our associates (Ashabuna).
Supporting text
The third view distinguishes the manner of return. If the item returns to the bankrupt party through a new legal cause, such as a sale, gift, inheritance, or bequest, the seller has no right to reclaim because the ownership did not return to the buyer from the seller's side. However, if the return occurs through the cancellation (faskh) of the initial transaction, such as mutual rescission (iqalah), rejection due to defect, or exercise of an option, the seller does have the right to reclaim. This is because the ownership reverts to the original cause; the annulment of the second contract does not establish ownership but rather removes the cause that nullified the seller's ownership, thereby establishing ownership through the primary cause, granting the seller the right to reclaim what ownership has been established over through his original sale.