Money Transaction Liability
| Fatwa #1174 | Category: Business & Trade | Country: United Kingdom | Date: 24th July 2024 |
| Fatwa #1174 | Date: 24th July 2024 |
| Category: Business & Trade | |
| Country: United Kingdom | |
Question
Parties:
Mr S
Mr I
Mr F
Mr S had an amount of cash in a foreign country which he wanted to send to the UK. He approached Mr I to help facilitate the transfer which was arranged via Mr F. Money was given to Mr F’s representative in the foreign country and this then became available in the UK, in local currency. Mr S was notified it was ready to be collected. Although the transfer and agreement was for cash, Mr S wanted a cheque to deposit into his bank rather than cash. Two small payments consisting of a cheque and cash were paid to Mr S when he requested. Mr I and Mr F tried to accommodate the request for cheque payment for the remaining balance but were not able to and informed Mr S. Many months pass and Mr S had still not collected his remaining balance. He was reminded numerous times during this period by Mr I to collect the cash which was still held by Mr F. Again many months pass and Mr S is yet to collect his balance which was available. Over a year from date of transaction Mr F had some financial difficulties due to which the money held at his property (belonging to Mr S) and other money was confiscated by the government. Mr F informed both Mr S and Mr I that the money would be repaid by him but many years have passed and the money has not been returned. Mr F is currently not in a position financially to return the money and does not know when he will be able to repay, if ever.
Mr S has now passed away and his son is seeking the outstanding amount from Mr I as the facilitator of the transaction, unaware of the circumstances of this transaction and debt.
In this scenario, who is responsible to repay the debt taking into consideration that Mr S was reminded many times to collect his money but he did not prior to it being confiscated? To reiterate, the arrangement was a cash transaction. Mr S request for a cheque was not part of the agreement and was something which both Mr F and Mr I tried to help him with but not able to.
Thank you.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In the transaction described, Mr S and Mr F are doing a money exchange deal wherein Mr I is an agent facilitating the transaction.
Accordingly, once Mr F received the funds in the foreign country, he is required to pay the equivalent in UK, and this becomes a debt binding on him.[1] Therefore, Mr F remains liable to settle the outstanding debt owed to Mr S (or his estate). This debt remains binding despite the circumstances mentioned in the query.
Given that Mr I played the role of an agent in this transaction, Mr S or his heirs cannot hold him liable for this debt.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia