is ruled his—meaning: the seller’s. If the goods are worth more than the purchase price, he is given only the amount of that price, and the remainder is divided among the creditors pro rata. A group of ḥadīth scholars have adopted this view.

The fourth position maintains that, in every case, the seller is merely one of the creditors; this is the opinion of Abū Ḥanīfah and the jurists of Kūfah.

The basic proof in this matter is the ḥadīth authenticated from Abū Hurayrah, in which the Messenger of Allah—peace and blessings be upon him—said:

“Whenever a man is declared bankrupt and the owner of the property finds it in its original form, he has the strongest claim to it over everyone else.”

This ḥadīth is reported by Mālik, al-Bukhārī, and Muslim, with very similar wording; the wording cited here is that of Mālik.

Some scholars take the report at its full general value—this is the first group. Others restrict it by analogy, arguing that its rationale is simply to show consideration to the seller because his merchandise is still intact; at most he is entitled to reclaim the price for which he sold it. Allowing him, in circumstances where the creditors share in the asset, to take more than that price would contradict Sharīʿah principles—especially since the creditors themselves may claim the goods at that price, as Mālik observed.

The Kūfan jurists, however, rejected the ḥadīth altogether, contending that a solitary report which conflicts with well-attested foundational principles is inadmissible. A single-chain report is merely probable, whereas those principles are certain. ʿUmar, regarding the report of Fāṭimah bint Qays, said, “We will not abandon the Book of Allah and the Sunnah of our Prophet for the statement of one woman.” It is also related from ʿAlī that he ruled the goods belonged to the bankrupt, and this was likewise the view of Ibn Sīrīn and Ibrāhīm among the Successors.

They further argued that the ḥadīth of Abū Hurayrah is disputed, for al-Zuhrī narrated from Abū Bakr ibn ʿAbd al-Raḥmān, from Abū Hurayrah, that the Messenger of Allah—peace and blessings be upon him—said:

“Whoever dies or goes bankrupt, and one of his creditors finds his very property, he is simply on par with the other creditors.”

This report, they claim, deserves preference because it comports with the established principles.

They add that the two reports can be reconciled by interpreting the former as dealing with deposits or items lent for use; the majority, however, reject this reading because some versions of Abū Hurayrah’s ḥadīth explicitly mention a sale. All of this, moreover, concerns the situation after the buyer has taken possession of the goods; before possession, the scholars of both the Ḥijāz and Iraq agree that the seller has the stronger right, for the goods remain under his guarantee.

Those who uphold the first ḥadīth differ when the seller has already received part of the price. Mālik says: if he wishes, he may return what he has taken and reclaim the entire merchandise, or, if he prefers, he may share proportionally with the creditors over what remains of his goods.

Al-Shāfiʿī says that he should take the remaining portion of his goods against the portion of the price that is still unpaid.

A number of scholars—Dāwūd, Isḥāq, and Aḥmad—maintain that if the seller has received any of the price, he must stand on equal footing with the rest of the creditors.