Is the working partner (Mudarib) obligated to pursue recovery of misappropriated or usurped profit-sharing capital?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

Primary text

In one ruling, the Mudarib is obligated to pursue the recovery of the profit-sharing capital if it is stolen or usurped, including engaging in litigation regarding it. This obligation is primary because it necessitates the preservation of the capital, which cannot be fully achieved without litigation and demand, especially if the capital owner is absent, whether due to the Mudarib's travel or the owner's absence. In this case, only the Mudarib may demand it, and if he neglects this duty, he must compensate for the loss because he has neglected and been negligent regarding the capital.

Supporting text

In another ruling, the Mudarib is not obligated to pursue recovery or litigation, as the contract of Mudarabah pertains only to trade, and litigation is not included within its scope.