Who has the right to claim compensation when damage is inflicted upon the pledged property?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 3 · Bab 1

Open in Qurani

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.