Procrastinating Debtor: Appendix B - The Shariah Basis for the Standard
The debtor must settle his debt when it is due. Default in payment by The debtor must settle his debt when it is due. Default in payment by a debtor who is able to settle the debt is prohibited. The Prophet (peace a debtor who is able to settle the debt is prohibited. The Prophet (peace be upon him) says: “Default in payment on the part of a solvent debtor is unjust.” also says: Delay in payment by a solvent “Delay in payment by a solvent debtor would be a legal ground for his being publicly dishonoured and punished.”.” Moreover, he (peace be upon him) approved the statement of Salman Al-Farisi to Abu Al-Darda` saying: “Give everyone his right.”of Salman Al-Farisi to Abu Al-Darda` saying: “Give everyone his right.” Muslim scholars have agreed on the permissibility of a debtor being punished in such circumstancesHowever, an insolvent debtor should be granted a grace period.be granted a grace period.
« Appendix A - Brief History of the Preparation of the Standard Settlement of Debts by Set-Off: Scope & Shariah Ruling »