Who has the right to claim compensation when damage is inflicted upon the pledged property?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
When damage (including resulting compensation, like Arsh, or blood money) is inflicted upon the pledged property, the primary claimant is the owner (the mortgagor/master), because the resulting compensation is his property. The pledgee (mortgagee) only has a right of security attached to it. This is analogous to a rented or deposited slave, and this is the position held by Al-Shafi'i and others.
Supporting text
If the owner neglects to claim compensation, delays it, is absent, or has a valid excuse preventing him from doing so, the pledgee has the right to claim it because his security right is connected to the resulting compensation.