Resolution No.(3): "Ruling on Resorting to Arbitration to among Disputants” 

Praise be to Allah, The Lord of The Worlds; and may His Blessings and Peace be upon our Prophet Mohammad and upon all his Family and Companions.

The Board is of the view that arbitration is permissible in Sharia as has been indicated by the Noble Quran, the Sunnah (Prophetic tradition), and the practices of the Sahabah (companions).

The Noble Quran:

As regards disputing spouses, Allah Says (What means): “If ye fear a breach between them twain, appoint (two) arbiters, one from his family, and the other from hers; if they wish for peace, God will cause their reconciliation: For God hath full knowledge, and is acquainted with all things.“ {An-Nissa`/35}.

The Sound Sunnah:

Abu Shoraih reported that the Prophet (PBUH) said to him: “Allah is the Hakam (arbiter), why do people call you Abu al-Hakam? He said: Whenever my people have a dispute over any matter, they would call me to settle that dispute, and both parties would be pleased with my verdict. The Prophet said: well done. What is the name of your oldest son? He said: Shoraih. The Prophet said: Then you are Abu Shoraih!! “ {An-Nassa`e}. This Hadith indicates that the Prophet (PBUH) commended and permitted arbitration when he approved Abu Shoraih`s act by saying to him {Well done}.

Moreover, it was reported that the Prophet (PBUH) said: “Whoever arbitrates between two persons who come to him willingly, but passes an unjust verdict is cursed. “

The Righteous Companions (May Allah Be Pleased with all of them) used to observe arbitration among one another in case of a dispute, as narrated that Umar bin al-Khatab (May Allah Be Pleased with him) sent a nomad to Shoraih for arbitration before appointing the latter as a judge.

Furthermore, it was narrated that Uthman Bin Affan and Talhah sought the arbitration of Jobair Bin Mote`im who wasn`t a judge yet, and they were pleased with his judgment, and this matter occurred before the honorable companions.

An arbiter must adhere to legal principles and procedures in the following: hearings, proceedings, and issuance of verdict, in order to observe justice. He must allow every litigant to plead his case and present arguments and pieces of evidence. He must start by listening to the plaintiff and consider his pieces of evidence, then listen to the defendant. He must also listen to witnesses in case there was a need for doing so. All of this must be conducted in the arbitration council. An arbiter mustn`t  be biased because arbitration is a form of the judiciary, so he must resort to neutrality, and he may not pass a verdict without a sound reason such as a confession, or evidence, or else. He must also consider the minutest details of the case and observe justice when issuing the verdict. And Allah Knows Best.

The Board of Iftaa'