What is the standing of a buyer whose purchase from the bankrupt's asset is annulled and the price cannot be returned?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
When a thing is sold by the bankrupt or their agent, and the price is received, or when an honest agent sells pledged property and the price is received, and subsequently the item is destroyed, making return impossible, or the item is reclaimed by its rightful owner, the buyer stands equally with the general creditors (al-Ghurama'). This is because the buyer's right did not attach to the specific asset itself, placing them in a position similar to someone who incurred damages from the bankrupt, whose claim is settled similarly. This ruling holds because the buyer's right did not constitute a specific lien on the property.
Supporting text
An alternative scholarly opinion suggests the buyer should take precedence over the general creditors. The justification is that the buyer did not merely consent to a liability solely against the bankrupt's estate (Dhimma), making them superior, akin to a pledgee (al-Murtahin). Furthermore, denying them precedence would deter people from purchasing the bankrupt's assets for fear of losing their money, leading to lower demand and depressed prices, thus making the buyer's precedence ultimately more beneficial to the creditors.