What is the Sharia ruling regarding the ongoing dispute between two partners—one who owns the poultry farm and provides the labor, and the other who finances the purchase of chicks and feed—concerning who bears the costs of repairing the damages incurred by the poultry farm and the car due to shelling, knowing that their agreement was for the owner of the poultry farm to receive two-thirds of the profit and loss, and for the financier to receive one-third?
The aforementioned transaction is not considered a valid (profit-sharing) nor a Shirka (partnership) according to the majority of jurists; rather, it is a فاسدة (invalid) partnership. All profit belongs to the owner of the capital, and he bears the loss. The owner of the poultry farm is entitled to a fair rental value (أجرة المثل) for his farm, its equipment, and his labor. The owner of the capital is not liable for what befell it due to the bombing. It is stated in Sharh Muntaha al-Iradaat: "(And if the Mudarabah is فاسدة (invalid), then it is an (rental agreement)) meaning, like an invalid Ijarah; because all profit belongs to the owner of the capital, and the worker is entitled to a fair wage (أجرة مثله)."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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