Abstract
The modern financial transactions and especially Islamic financial institutions face the problem of default of client in timely payment of debts or installments. Likewise, in supply contracts either supplier or purchaser faces the same problem. Such defaults in payment or failing to fulfill the obligations sometimes cause huge losses to the other party. To manage their credit risk, the agreements through which the Islamic financial institutions provide credit facility to the client include penalty clauses relating to delay in payment on the part of a solvent debtors or delay on the part of contractors in fulfilling their obligations. Default in payment on the part of a solvent debtor is unjust. However, if default in payment is justified by an established shariah reason, then shariah emphasizes to provide more time to the debtor by extending deadline of payment. It is also not permitted to claim compensation from such debtor even if he is a solvent defaulter as this compensation falls under the category of Riba (interest). So, there is need of shariah analysis of all these penalty clauses included in the agreements of the Islamic financial institutions for credit facility. This study aims to analyze the transactions of the Islamic financial institutions relating to delay on the part of debtors or contractors in fulfilling their obligations. This article proceeds from an introduction of the subject and instructions of shariah regarding solvent debtor. The next part discusses the shariah analysis of conditions generally imposed upon solvent debtor in modern financial transactions. These conditions include immediate payment of all the outstanding future installment, a unilateral promise to donate a specific amount in a charity fund, deduction of the amount owed to bank from the client’s other account without his consent and repossession of the sold asset by the bank in case of deliberate delay in payment by the solvent debtor. The last part of this study consists of the conclusion and findings of this article.
حافظ معظم شاہ, غلام یوسف. (2020) قرض کی ادائیگی میں تاخیر کی صورتیں (احکام شرعیہ اور معاصر تطبیقات کی روشنی میں تحقیقی مطالعہ), Pakistan Journal of Islamic Research, Volume No. 21, issue 02.
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