Is it permissible to engage in profit-sharing (*Mudarabah*) using property wrongfully taken (*Maghsub*) that is currently in another person's possession?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

Primary text

It is permissible to engage in profit-sharing using property wrongfully taken that is currently held by a usurper, provided the owner permits the arrangement. This is because the property remains the owner's right, and the owner is permitted to sell it to the usurper or to whomever can recover it from the usurper, making it analogous to a trust deposit (*Wadi'ah*). Upon entering the profit-sharing contract with the wrongfully taken money, the usurper's liability (*Dhaman*) for the usurpation is immediately lifted. This is the position held by Abu Hanifah.

Supporting text

The liability for usurpation does not cease until the usurper returns the property as payment (*Thaman*). This view is held by the Qadi and aligns with the position of Al-Shafi'i, because profit-sharing does not negate liability, as evidenced by situations where excess utilization occurs in the contract.