Is zakat obligatory on the investment sum that was paid to a contracting company that went bankrupt and delayed the handover of the apartments, and on the amount of the check that the investor was unable to cash due to the bankruptcy?

Purchasing an apartment involves one of two scenarios:

The first: If it is for dwelling or renting, there is no zakat (definition) on it. As for the rental income, zakat is due on it if a year passes and it reaches the nisab (definition).

The second: If the apartment is intended for trade, it must be appraised at the end of the year after construction is complete, and its value is subject to zakat. If its construction is not yet complete, there is a difference of opinion regarding its zakat. Some have mandated zakat on its capital or its value if it is greater, while others have said there is no zakat on it until its construction is complete. Some have differentiated between offering it for sale during construction or not.

However, if the company goes bankrupt and you do not receive the apartment, what you paid is considered a debt owed by the company. A debt owed by a bankrupt entity is not subject to zakat until it is collected and a year passes. It is more cautious to pay zakat on it for one year upon collection.