What is the legal ruling in the event that a debtor transfers his debt to another person, and the transferee refuses to pay the debt or a part of it, and is it permissible for the claimant to return to the original debtor?

This type of transaction is called "Hawala" (transfer of debt). For its validity, the consent of the transferor (Muhil) and the transferee (Muhtal), the establishment of the necessary debt, and the proper صيغة (formulation/wording) are required. If the drawee (Muḥāl ‘alayhi) denies the debt after the conditions for the validity of the Hawala are met, scholars have differed on this matter: Some have said that the Hawala is binding on the drawee even if he denies or becomes bankrupt. Others have said that if the drawee denies, he must swear an oath, and the transferee can then revert to the transferor. Still others have said that the transferee cannot revert to the transferor unless the drawee provides evidence of his innocence from the debt. It is advisable to refer to the Sharia court to resolve this issue.