Is it permissible to take the 5% increase determined by the court as compensation for late payment? And what should be done if it is not permissible?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It has become clear that the company did not pay for the product for reasons related to its warranty, and the ruling was in your favor, compelling the company to pay a delay penalty. There is a difference between obligating the defaulting debtor to pay what the creditor incurred to obtain their right (such as court expenses), which is permissible because it is due to the debtor's delay, and compensation for delay (lost opportunity), which is usury (riba). If the court rules the latter, the creditor is not permitted to take from it more than what exceeds the actual damage they incurred for the case.
Summarized from the full answer at Ftawy · imported
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