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Search Fatawaa

Subject : Ruling on Profit of Wadee`ah Resulting from Misconduct of the Person Entrusted with it

Fatwa Number : 3574

Date : 15-07-2020

Classified : Deposit

Fatwa Type : Search Fatawaa

Question :

What is the ruling on the profits of the money deposited into the bank as a trust for someone? For example, someone has entrusted me to keep a certain sum for him, but I deposited it into a bank account and it made profits. Is it permissible for me to take the profits and give back the original sum to its owner?

The Answer :

All perfect praise be to Allah the Lord of the Worlds. May Allah`s peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

The person to whom something has been entrusted must take care of it. It is unlawful for him/her to invest or trade in it as he/she is entrusted with it. Moreover, if it is destroyed or damaged whilst in the care of the one to whom it has been entrusted, through no negligence on his part, then he is not responsible for replacing it, such as if it is destroyed or damaged along with some of his own property, because it was something entrusted and the one to whom it was entrusted is not responsible for replacing it if he did not overstep the mark.

But, the one who oversteps the mark with regard to something that has been entrusted to him, or who is negligent in looking after it, is responsible for replacing it if it is damaged or destroyed, because he has caused the property of another person to be damaged or destroyed.

The four Imams have disagreed about the profit resulting from a trust. Hanbali jurists are of the view that it goes to the owner of the trust as it is the profit of his money and the person to whom it was entrusted isn`t entitled to anything. It is stated in the Hanbali book "Matalib Uli An-Nuha, V.4:P.64," "If the person to whom something was entrusted used it in trade, then the profit goes to the owner. This is according to the correct opinion of our school of thought, Hanbali."

In conclusion, the person to whom something was entrusted should take care of it. If he oversteps the mark with regard to it, then he incurs sin and he is responsible for replacing it if it is damaged or destroyed. Moreover, whatever profits result from that trust go to the owner. We (Iftaa` Department) adopt this religious opinion to preserve people`s wealth against any act of transgression and to prevent any conflicts that could result from that. And Allah the Almighty knows best. 



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