Topic:
Dealing with Former Customers After Separating from a Joint Business
(No-33476)
Assalamu Alaikum,
I seek guidance regarding a business matter that involves ethical and religious considerations.
My brother-in-law, Hamid Abdul Jabbar, started a business over a decade ago while working a full-time job. At one point, I joined him as a partner without investing any money, contributing only my time and effort. Later, my other brother-in-law, Hamad Rasheed, approached Hamid Abdul Jabbar and offered his company to facilitate imports, eventually proposing a business partnership. He also made me an employment offer in the business, which I found unacceptable.
During their partnership, all clients were brought in by Hamid Abdul Jabbar, while Hamad Rasheed made minimal investment. After the partnership ended, Hamad Rasheed began approaching the same clients and selling the same products at lower prices, claiming he had “complete rights” because he initiated imports in the business. Subsequently, Hamid Abdul Jabbar invited me to become a partner again, and this time I invested financially as well.
My question is: Are the earnings of Mr. Hamad Rasheed lawful from an Islamic perspective, considering he is benefiting from clients originally developed by someone else and contributing minimally to the business? Additionally, from an ethical standpoint, how should his actions be viewed in light of Islamic teachings on honesty, fairness, and business conduct?
I would greatly appreciate a detailed fatwa on the lawfulness of his earnings and the ethical implications in this scenario.
JazakAllahu Khair.
In the situation described, if one partner openly and clearly withdraws from the joint business and, in an independent capacity, contacts customers and enters into new dealings with them, without interfering in transactions that were concluded under the previous business, then such business activity and the income earned from it will not be considered unlawful (haram) or impermissible (na jaa’iz), provided there is no other reason that would make it impermissible.
However, if there was any valid agreement between the parties involved (Hamid Abdul Jabbar and Hammad Rasheed), then it is morally and ethically necessary to honor and abide by that agreement.
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References:
البحر الرائق: (107/6، 108، ط: دار الکتاب الاسلامی)
(قوله والسوم على سوم غيره) للحديث «لا يستام الرجل على سوم أخيه، ولا يخطب على خطبة أخيه» ، ولأن في ذلك إيحاشا وإضرارا، وهذا إذا تراضى المتعاقدان على مبلغ ثمن في المساومة فإذا لم يركن أحدهما على الآخر فهو بيع من يزيد، ولا بأس به على ما نذكره، وما ذكرناه محمل النهي في النكاح أيضا
سنن الترمذي: (باب ما ذکر عن النبي صلی اﷲ علیه و سلم في الصلح بین الناس، رقم الحدیث: 1352)
أن رسول اﷲ صلی اﷲ علیه وسلم: الصلح جائز بین المسلمین إلا صلحا حرم حلالا أو أحل حراما، والمسلمون علی شروطهم إلا شرطا حرم حلالا أو أحل حراما
Allah the Almighty knows best.
Darul ifta Al-Ikhlas, Karachi.