If a company has gone into liquidation but the shareholders promise to repay all creditors over time, will the shareholders still have to repay the interest they owe to banks?
Question
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If a company has gone into liquidation but the shareholders promise to repay all creditors over time, will the shareholders still have to repay the interest they owe to banks?
Answer
In principle, it is not permissible to pay or earn interest.
If the interest owed is defaced due to liquidation, it simply facilitates to comply with the Islamic provision of not paying interest.
And Allah Taãla Knows Best.
Was salaam
Mufti Ebrahim Desai
FATWA DEPT.
- Answered by
- Mufti Ebrahim Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/881
Fatawa SA: https://fatawa.co.za/fatwa/askimam-881
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