I have a partner and we invested in projects together. The partner introduced some investors and I also introduced other investors who also invested equity in the projects. The partner was fully aware of the identity of my investors. In fact my investors were introduced to the partners also. In some instances my recommended investor was approached together by me and the partners. Structurally the projects were in control of my partners (shares held by them as trustees). All my investors transferred funds directly to the partners companies and the partners were aware of who the funds are from. Now I have a dispute with the partners where they claim that I owe them money on one project. Some money is due back from other projects to investors that I had introduced to the consortium. The partners are now saying that I am responsible for any funds owed to the investors that I introduced and that what’s due to them from the kitty will be offset against amounts that they claim I owe them.
Please advise. Question:
Can they offset other peoples’ money against what (if any) money I might owe them. Given that they are fully aware that the funds do not belong to me and have come directly from the investors to them. I was simply an introducer.
In offsetting are they scuppering the amanaat of others.
Your urgent reply would be greatly appreciated.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The relationship between the investors and the investment company is shirkah (partnership). As such, the shari’ah laws of partnership will govern the situation. Accordingly, the investors have a direct claim from the investment company for their shares and profits. By introducing investors in the investment schemes, you do not become a legal partner. The investors have no claim from you in their shares and its profits. If your partner have a claim against you, that is a personal issue and not related to the investors investments.
It is incorrect for the investment company to withhold investors’ profits in lieu of a claim against you. The investment company will be guilty of misdirecting their claim to the wrong people and depriving them of their right, which is a major sin. If the company deprive the investors of their right, they will be contaminating their Halal funds with Haram and depriving themselves of the Barakah of their Halal funds.
And Allah Ta’āla Knows Best
Mufti Arshad Ali
Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)