What to Do If a Borrowed Item Is Found After Its Compensation Has Been Paid

Question

If a borrowed item (ʿariya) went missing despite being fully safeguarded, and because it went missing a compensation for the missing item was paid, but after the compensation was paid the original item was found — should one now hand over the original item and take back the compensation? Would it be correct according to the Shariʿa to do so or not?

Answer

The basic rule is precisely that the item should be returned upon taking back the compensation. If no agreement can be reached on this, then the borrowed item will become the property of the borrower (mustaʿir) in exchange for the compensation.

Source: Fatawa Mahmudiyya

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