PARTNERSHIP ON A FIXED PROFIT

Q: I have a considerable amount of money saved by me from my monthly income. I want to invest it in a lawful business which can give me some profit. One of my friends has offered me to enter into partnership with him, I shall give him the money and he will invest it in his business which is already established and run by him. He has agreed to pay me a sum of two thousand rupees monthly as my share in the profit. Is it permissible for me to enter into partnership on these terms? A: No. A pre-determined amount of money cannot be fixed as a profit in a partnership. If you want to enter into partnership with your friend, you will have to share his risks also. In case he faces a loss, you will have to bear it in proportion to your investment. And if the joint venture brings a profit, the same may be shared on the agreed ratio. Thus the amount of profit can only be known after the profit accrues actually, and it cannot be fixed beforehand. However a provisional profit may be distributed before the actual accounting takes place. On this basis, the monthly payment of a particular amount may be agreed but it must always be subject to the final settlement at the end of the term. When this final settlement will take place on the basis of the actual gain or loss, all the provisional payments made earlier must be taken into account and must be adjusted according to the actual profit or loss. Without this necessary condition the said agreement of partnership will not be a valid agreement according to Shariah.

THE USE OF CREDIT CARDS

Q: Kindly throw some light on the use of credit cards, which are floating in the market. Majority of these cards belong to professional banking institutions, such as American Express, City Gold Card etc. However, some cards are issued by companies such as Diners club etc, which are not themselves banking institutions. Please explain the ruling of Shariah about both these cards. In your reply please cover both the aspects of using credit cards, first as holders of the card, used to offset the purchase price and second, when we accept these cards as sellers. (Muhammad Salman, Karachi) A: The use of credit card by a purchaser is allowed in Shariah, no matter whether the card is issued by a banking institution or some other company. However, the following points must be borne in mind in this respect: (i) The best way of using these cards is to open an account wherefrom all the amounts owing are debited by the issuing company to aviod the possibility of default which may in some cases, carry the risk of interest. (ii) If the system of direct debit is not arranged, one must always be careful that he pays the bills within the stipulated time without fail, so that interest may not be imposed upon him. (iii) The annual fee paid by a card-holder to the card-issuing company is not interest, rather it is a fee charged for certain services rendered by the company for the benefit of the holder. That is why it is charged irrespective of the amount actually spent by the holder. The second question is whether it is permissible for a seller to accept credit card. This question has been a point of debate between the contemporary scholars of Islamic jurisprudence. Some of them are of the view that the amount charged by the card-issuing company to the shop-keeper is analogous to interest. They say that it is equal to discounting a bill of exchange, hence not allowed in Shariah. However, some other scholars are of the opinion that it is not interest. On the contrary, it is a fee charged by the company for certain efforts undertaken by it. Firstly, the company has to do a lot of work for the benefit of the seller. Therefore, the commission charged by it is similar to the commission of a broker which is undoubtedly permissible. This commission is different from discounting a bill of exchange, because the rate of discount in a bill of exchange is always tied up with the period of its maturity, while the commission charged by the company from the merchant is not so linked. This commission is determined irrespective of the time on which the card-holder shall pay the amount to the company. Therefore, it is just like a commission charged for brokerage services. In my personal opinion, the second view seems to be more preferable.

SEVERAL QUESTIONS ABOUT INSURANCE AND INTEREST

Q: (1) Is it Jaiz (permissible) to take an insurance policy from a conventional insurance company to cover our employees against liabilty in the following circumstances: ** Injuries that may be suffered by workers (company employees) due to accidents in the course of their work. ***within the company's premises ***whilst travelling in company vehicles. ***Injuries that may be suffered by innocent parties involved in accidents within the company's premises or in company vehicles. In the case of motor insurance it is a statutory requirement that vehicles owners must obtain an insurance policy to cover third party risks and the company complies with this requirement. This is the only form of insurance cover that the company now takes. (2) Is it jaiz to take out an insurance policy to cover the anticipated medical expenses of the employees of the company? (3) Most companies offer to meet the medical expenses of the employees of the company? (4) There are circumstances in which the bank charges us interest when our current account goes into overdraft due to circumstances outside our control mainly due to non-realization of cheques issued to us by our debtors. Is it jaiz for us to recover such interest from the debtor concerned? (Rafiq Qasim, Colombo) A: (1) The permissibility or otherwise of an insurance policy depends on the nature of the insurance scheme and on the terms and conditions of the transaction. But, leaving aside the mutual insurance schemes, all the insurance policies available with the traditional insurance companies run on commercial basis have an element of interest or qimar or both. Hence, they are not allowed in Shari'ah. So, it is not permissible to take an insurance policy from a conventional insurance company in anyone of the first four situations mentioned in your question. The prevalent third party insurance also does not conform to the rules of Shari'ah. However, being a necessary legal requirement for the use of a motor car, it is allowed on the basis of necessity only in those countries where this kind of insurance is compulsory.[1] (2) The same reply is also applicable here. (3) A company may create a mutual insurance fund of its own for this purpose. But it is not permissible in Shari'ah to take a policy from a traditional insurance company. (4) If the interest is charged by the bank without your knowledge or without your having entered into an agreement with them for an interest--bearing transaction, you cannot be held responsible for the sin of paying interest. But of the same time, you cannot claim the amount of interest from your debtor, because in that case you will be entering into a transaction of interest deliberately. [1] In certain countries, the state establishes a road accident fund by raising a levy from its citizens. This fund is then used to compensate persons who suffer damage as a result of the negligent driving of vehicles. Such a fund has nothing to do with Insurance. (EDITOR)

ENTITLEMENT TO DEATH BENEFITS PAYABLE BY PENSION FUNDS

Q: 1. The Pensions Funds Act 1956 ("Act') regulates pension funds in South Africa. 2. The object of the Act is to provide support for the dependants of a deceased member upon his death. The support is provided by means of lump sum payments and/or annuities. 3. A pension fund established in terms of the Act has separate juristic personality, and must comply with prescribed requirements including registration, etc. 4. A contribution to a pension fund is deducted at source from the employee’s salary and paid over to the fund by the employer. The employer also makes defined contributions to the fund. 5. When the employee dies, the fund in accordance with its rules but subject to the Act pays death benefits to the dependants of the deceased, normally the surviving spouse and minor children, who were dependent on the deceased for maintenance in his lifetime. 6. It is crucial to understand that in making payments of the death benefits, the trustees of the fund exercise a discretion conferred upon them in terms of the Act. They are empowered in terms of the Act to make payment of the death benefits amongst the dependants in such Proportions as they deem just and equitable in the circumstances of the particular case notwithstanding any nomination made by the deceased. Their decision is in terms of the Act subject to review by an appointed adjudicator and ultimately subject to review by the High Court (Section 37C). 7. The question therefore arises whether the death benefits awarded to the dependants of the deceased employee belong to those dependants, or whether the death benefits form part of the estate of the deceased. The Act specifically provides that those benefits will not form part of the deceased estate, and are not subject to attachment upon insolvency of a person entitled to a benefit. 8. In my humble view, the death benefits belong to the dependants of the deceased to whom they are awarded by the trustees of the pension fund in question. The reasons for this opinion is that: 8.1 The pension fund is a separate legal entity established and regulated by the Act; 8.2 The trustees in awarding the death benefits are exercising a discretion conferred upon them by the Act in accordance with its objects; 8.3 The contributions which were deducted at source did not belong to the deceased employee (in this regard, see the interesting Fatwa on Provident Funds written by your distinguished father (rahmatullahalai); 8.4 At best for the deceased, he had a claim against his employer for the amount representing the contributions deducted from his salary at source but this is not connected with the ultimate payment made by the trustees of the Pension Fund which is sourced in the Act and which regulates those payments designed for the support of the dependents only. 9. I would add that as regards the character of the death benefits, I agree with the said Fatwa of your distinguished father to the effect that they are halal. 10. Please examine the aforegoing carefully and let me have your considered Fatwa on the question set out in paragraph 7 above urgently, as I have a case on hand. Besides, the issue is a common one and requires clarity. (M. S. Omar, South Africa) A: In the light of the rules of the Pension Funds Act 1956 mentioned by you it appears that the grants given to the dependents of a deceased person from the Pension Fund are not subject to the rules of inheritance. The amounts deducted at source from the salaries of the employees are to be treated as a subscription to the Fund which no longer remain in the ownership of the deceased person and perhaps he has no right to claim it back during his life time. The principle is that only those properties of a deceased person are subject to inheritance rules which he can claim rightfully during his lifetime. Since he does not have the right to claim any amount from the fund, therefore, it is not to be taken as left-over property. The fund being a legal entity it can decide to pay this grant to whomever it deems fit from the family of the deceased. In the terminology of Islamic Fiqh this grant is a voluntary gift (Tabarru'), therefore, it is not necessary that it is to be distributed among all the legal heirs according to their prescribed shares in the inheritance. I have given judgment in a Shariah Appeal fixed before the Shariat Appellate Bench of the Supreme Court of Pakistan with regard to the benevolent fund which is very similar to the Pensions fund you have asked about. (A copy is being sent to you by mail for your perusal and record).

shaving the head after Hajj or Umrah

Question: Is it obligatory to shave all the hair of the head after performing Hajj or Umrah, or a part of the hair can be cut? Answer: It is not obligatory to shave one's head or to cut all his hair at the conclusion of Ihram in Umrah or Hajj. One can also cut his hair instead of shaving it. The minimum requirement for coming out of ihram, according to fiqh-e-Hanafi, is to cut one's hair at least to the measure of a fingertip from all sides of one's hair. If one has cut his hair to this extent, he can come out of Ihram. However, if one's hair are too short, and he cannot cut them to the measure of a fingertip, he will have to shave his head without which he cannot come out of Ihram. It should, however, be remembered that shaving the head is more preferable and carries more thawab. It is reported by a number of authorities that the Holy Prophet (Sallaho Alaihai Wasallam) has prayed to Allah thrice for bestowing his mercy on those who shave their hands after performing Hajj, while he prayed only once for those who cut their hair. Fatawa by Mufti Muhammad Taqi Usmani.

Umrah

Question: If I go for Umrah am I required to first offer Umrah on my own behalf and then perform another Umrah on behalf of someone else, by going back to Meekat and wearing Ihram? Or is it not necessary that when I enter the Hudood-e-Haram I should first perform Umrah on my own behalf? Answer: This question is based on either of the two misconceptions generally found in the minds of the people who are not familiar with the Islamic precepts about Umrah. The first misconception is that every body who wants to perform Umrah is duty bound to perform another Umrah on behalf of some other person, and the second misconception is that whoever wants to perform Umrah on behalf of someone else is duty bound to perform another Umrah on his own behalf. Both propositions are misconceived and incorrect. In fact, if a person wants to perform Umrah on his own behalf, he is not under an obligation to perform another Umrah for any other person. Similarly, if he wants to perform Umrah on behalf of some other person he is not required necessarily to perform another Umrah on his own behalf, neither before nor after the Umrah he performs for another person. Fatawa by Mufti Muhammad Taqi Usmani.

Does Hajj become Wajib if you perform Umrah

Question: It is commonly heard that if one performs Umrah once, then performing Hajj becomes mandatory (Wajib) for him. Please clarify this point. Answer: This is not correct. Merely performing Umrah does not make Hajj mandatory. But if a person who did not perform Hajj before he reaches Makkah for any reason in the month of Shawwal or anytime thereafter before the 10th of Zilhijjah and he has resources to stay there upto the days of Hajj, only in that case it becomes obligatory on him to perform Hajj either that very year or in any subsequent year. Fatawa by Mufti Muhammad Taqi Usmani.

MARRIAGE WITH CHRISTIAN AND JEWISH GIRLS OR BOYS

Q: "When it comes to marrying a Christian or a Jewish girl or boy, the Muslims youths argue that the Holy Qur'an has allowed such a marriage. Since we are living in the midst of Jews and Christians, we pre-eminently need to know the correct and precise Islamic position in this respect. Please provide the guidance and oblige." (Dr. Zakaullah, New York) A: The Holy Qur'an has never allowed the Muslim girls to marry a non-muslim boy, no matter whether he is a Christian or a Jew or a Hindu or a Parsi. However, the Holy Qur'an has allowed a Muslim boy to marry a Christian or a Jewish girl. But there are two important points which should always be kept in mind in this respect: 1. It is only the Christian and Jewish women that are allowed to be married by a Muslim. No woman of any other religion or belief is halal for a Muslim. The women who are Christian or Jew only by their names, and do not actually believe in any religion, like a large number of people in the Western countries, cannot be termed as "Ahl-al-Kitab" (People of the Book). They are atheists and it is not allowed in Shairah to marry an atheistic woman. 2. Shariah has allowed the Muslims to marry a Christian or a Jewish girl only where there is no apprehension that the husband or his children may come under her influence in religious matters. In the early days of the Islamic history every Muslim was duly equipped with adequate knowledge of his religion and had an unshaken commitment to the Islamic principles. Therefore, there was no apprehension that he would be misled by any foreign influence. Rather, he was supposed to convince his wife in religious issues. Therefore, if a Muslim is fully confident that his marriage with a Christian or a Jewish girl will never affect the religious life of himself or of his children, then there is no bar against such a marriage. But if he is not so confident, then, he must avoid marrying a non-Muslim girl. Even in the days of the Sahabah (the companions of the Holy Prophet (S.A.W) some people were not advised to marry a Christian or the Jewish girl for this very reason. (See 158:2/4, Musanif Ibn Abi Shaibah)

MARRIAGE ON TELEPHONE

Q: A lives in the United States of America. He wants to marry B, a girl living in Karachi. A, for a number of reasons, cannot come to Karachi to marry her, nor B can go to U.S. unless she is proved to be the wife of A. How can A and B contract a valid marriage without meeting each other? Is it permissible for them under Shariah to contract marriage on telephone by pronouncing offer and acceptance? A:Nikah (marriage) cannot take place on telephone, because it is a necessary condition for a valid contract of marriage that at least two witnesses should be present at the time of marriage and should witness both offer and acceptance. This necessary condition cannot be fulfilled in a telephone conversation. However, if A wants to marry B without both being present at one place, he can authorize anyone of his friends or relatives living in Karachi to contract his marriage and appoint him his agent to pronounce offer or acceptance on his behalf. If, for example he selects C to be his agent for this purpose, he should authorize him in the following words: "I authorize you to contract my marriage with B, daughter of D, on a sum of .... as dower." Then, at the time of marriage ceremony in presence of at least two male witnesses, the girl may pronounce her offer saying, "I married A, son of E on a sum of .... as dower." If there is a Qadi or a Nikah Khwan duly authorized by the girl, he can also pronounce offer in the following words: "I gave B, daughter of D in marriage with A on the sum of .... as dower. " C, the agent of A, will say in reply, "I accepted this marriage on behalf of A.” The offer can also be initiated by C as an agent of A. In this case he will address B in the following words: "Being a duly authorized agent of A, I marry A, son of G, to you on a sum of .... as dower.” In this case B will reply, "I accepted this marriage." In both cases, it will be a valid contract between A and B, where after they will be treated as husband and wife duly wedded to each other according to Shariah.

My Allah, My Life

My Allah, My Life

by Zeba Bukhari



This earth, this duniya, is a drop of a sea
The final destination, The Akhirra, which is beyond infinity

This test and trial makes me blue
Fighting shaytaan is the hardest thing I ever had to do

Years and days will quickly go by
To Allah alone I cry, who will always stay close by my side

Allah has commanded us to give Zakah and Pray,
This Deen is of Allah and his Messenger, not some play
So let us repent for the sins we commit night & day

My days are lonely and they are cold,
My goal is to obey Allah as my days grow old & he takes my soul

Allah is present everywhere, Allhamdu lillah my connection with him is strong
He lives in my heart, his mercy and blessings are enormous & beyond

When I sacrifice and give up something for his sake,
In return he rewards me with something better in its place

My life is corrupted and my days are rough,
Sometimes my tests and trials get so tough,
But for the sake of Allah, it's never enough

Allah & his Quran is my guide
If he wasn't there for me, I'd break, swelter & die

My mother is gone far & away,
A visitor has descended upon her grave,
Comforting her & soothing her endless pain

She was in her Jahalliya days, Ya Allah only if she prayed!
Her Salaat & good Am'als would have saved her on this day

I know my mother is gone, and Jannah lies in her feet
She is distant from me, buried in too deep
If not in this world, then in the next we will surely meet