Can an investor (Mudarib) who stipulated maintenance expenses reclaim funds spent from his own wealth after claiming the investment capital remains intact or has been returned to the capital owner?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

Primary text

If an investor stipulates maintenance expenses (Nafaqa) and subsequently claims that he only spent from his own wealth and seeks reimbursement, this claim is accepted. This is true whether the capital remains in his possession or has been returned to its owner. The basis for this ruling is that the investor is a trustee (Ameen), and thus his assertion regarding such matters is accepted, similar to a trustee's word when funds remain in his hands, or an executor's claim regarding maintenance for an orphan.

Supporting text

Abu Hanifa holds that this claim is accepted only if the capital remains in the investor's possession, but not after he has returned it to the owner.