What is the legal status of a pledged item (Rahn) after the debt is fully paid or the debtor is absolved of the debt?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 1 · Bab 1

Open in Qurani

Primary text

When the creditor has received the full right or the debtor is absolved of the debt, the pledge remains a trust (Amanah) in the creditor's possession. This view is held by Al-Shafi'i. The item remains an Amanah as it was, and the creditor is not obligated to return it immediately because he holds it with the owner's permission and does not exclusively benefit from it, making it analogous to a deposited item (Wadi'ah). This differs from a loaned item (A'riyah) because the borrower exclusively benefits from it, and also differs from an item blown into one's house by the wind, where holding it without permission necessitates returning it.

Supporting text

Abu Hanifa holds that if the debt is paid, the pledge becomes guaranteed (madmun), but if the debt is absolved or gifted, it does not become guaranteed, based on Istihsan (juridical preference). This is deemed a contradiction because the initial possession was guaranteed and that state has not ceased.