What is the ruling regarding the right to restitution when a void sale contract is executed, possession exchanged, the seller destroys the price money, and then becomes bankrupt?
Chapter on Selling the Musarrah (Animal with milk retained in udder)
Al-Mughni
Book of Sales
Primary text
If a void sale (bay' fasid) is executed, possession of the subject matter and the price is exchanged, and subsequently the seller destroys the price money before bankruptcy, the seller retains the right to reclaim the sold item (al-mabii'). The buyer shares pro-rata with other creditors (uswat al-ghurama'). This position is held by Al-Shafi'i.
Supporting text
Abu Hanifa holds that the buyer has a superior right to the sold item over other creditors because the item is in his possession, making him more entitled to it, similar to a pledgee (murtahin). However, the opposing view maintains that since the seller did not receive the price money as a collateral security (wathiqah), he is not entitled to preferential treatment, unlike the pledgee who possessed the item as security for his right.