Deriving benefit from pledged property

Question

Question: Commonly it is agreed between the pledgor and the pledgee that the pledgee will derive benefit from the pledged thing, for example benefit from the rent of a house and the produce of land; yet this is also regarded as impermissible. In the book Mufid al-Mufti wa-l-Mustafti — the Urdu Fatawa ‘Azizi, pp. 59, 60 — I came across the following passage: “But in the view of this humble one, the verified position is that in such cases, in accordance with custom and usage, the word ‘hiba’ (gift)

Answer

Such deriving of benefit is entirely impermissible, whether the pledgor has given permission explicitly or it is the customary practice. Those who considered it permissible after the pledgor’s permission were refuted by ‘Allama Shami in Radd al-Muhtar; and Mawlana ‘Abd al-Hayy wrote a separate treatise on this issue in which he declared it categorically impermissible and…

Source: Fatawa Mahmudiyya

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