Is "compensation" permissible or forbidden, and is it forbidden to take compensation for something a colleague lost?

It is permissible to take compensation for something your companion lost if he offers it willingly. And he is obligated to give compensation if he took it with your permission as a loan and it was lost unintentionally on his part. This is the view of the Hanbalis and Shafi'is, and it is the more correct opinion. However, he is not liable according to the Hanafis and Malikis. But if he took it without your permission, he is liable, based on the hadith: "The hand is responsible for what it takes until it returns it."