donated, made an endowment, or otherwise disposed of; in such circumstances there is no right of repossession—unless the transaction was merely a stratagem to defeat that right, for stratagems are forbidden and carry no legal weight.
These, then, are the conditions that entitle the owner to reclaim the very goods he finds in the bankrupt’s possession. Jurists have derived them—some from the explicit wording of the hadith, others from its implicit meaning and the purpose of the ruling.
9 – Shaykh ʿAbd al-Raḥmān al-Saʿdī (d. 1376 AH) said: The legal scholars have listed a number of conditions for the mudrik—the one who locates his property with a bankrupt—to take it back. Most of those conditions that restrict repossession of the article itself have no evidence to support them, and the plain sense of the hadith indicates that he may reclaim it unless something prevents him, such as an attached right, a transfer of ownership, or a substantial alteration resulting in added value.
10 – The Ḥanafis maintain that the owner of the merchandise cannot reclaim it, for the purchaser acquired ownership through the sale. They construed the hadith with weak interpretations, one of which is that the hadith conflicts with established legal principles. The correct position, however, is that of the majority, who act on the hadith, for it is itself the foremost of legal principles. Al-Shawkānī said: “To excuse oneself from the hadith on the grounds that it contradicts legal principles is a faulty excuse, and Allah is the Guide.”
Scholarly disagreement:
One version of the hadith reads, “whoever goes bankrupt or dies.” On that basis, Imams Mālik and Aḥmad held that if the debtor dies, the owner of the goods has the same standing as the other creditors and enjoys no special claim. Imam al-Shāfiʿī, however, held that the owner does enjoy a special claim and may recover his very property after the death of the person who possessed it. This view is stronger, by analogy with the case of bankruptcy and in light of that particular narration.