Is it permissible to refuse a friend's return of a loaned computer after its hard drive has crashed, with the condition that a new hard drive be purchased, or must it be reclaimed as is?

Scholars differ concerning the liability for a borrowed item (عارية) that is damaged while in the possession of the borrower. Some hold that liability is obligatory in all cases. The Shafi'is and Hanbalis, however, restricted this to cases where the borrowed item was damaged in a manner inconsistent with its intended use. Based on this, the borrower of a computer is not liable for damage to the hard drive, as the damage occurred during authorized use—the computer cannot function without it—unless he intentionally damaged it in a manner outside its normal use. If the borrower does offer compensation, it would be out of generosity.