Chapter on Settlement
His statement, “Chapter on Settlement”: ṣulḥ (settlement) is the verbal noun of ṣālaḥa (to make a settlement), yuṣāliḥu, ṣulḥan. Another derivative is aṣlaḥa (to set right), yuṣliḥu, iṣlāḥan (reconciliation). Linguistically, it means bringing a dispute to an end.
A settlement is a contract by which a dispute between litigants is ended. This is its basic meaning, though it has many types and pertains to all rights, financial and otherwise; settlement may take place with respect to all of them. Allah the Exalted says:
“And if a woman fears ill-treatment or neglect from her husband, there is no blame upon them if they make a settlement between themselves; and settlement is best.” [al-Nisāʾ 4:128]
This concerns the rights between spouses. Allah the Exalted also says:
“There is no good in much of their private conversation, except for those who encourage charity, what is right, or reconciliation between people.” [al-Nisāʾ 4:114]
It is legally permitted for a person to speak untruthfully for the purpose of pursuing reconciliation and bringing about settlement between people. The Sacred Law encourages reconciliation between people. It is authentically established that the Prophet ﷺ made a treaty with the polytheists at the campaign of al-Hudaybiyyah (1); this concerns the treaties that arise between Muslims and polytheists.
However, reconciliation is prohibited in one case: when the judge realizes that the right is on the side of one of the two litigants. In that case, settlement is impermissible and may not be pursued unless he first informs the rightful party that the right is his, and then asks him whether he wishes to settle. This is because some judges have weak knowledge, and whenever a case comes before them, they turn it into a settlement. This is unlawful and impermissible.