Suppose Bakr owes 80,000 rupees and pledges an item worth 80,000. The asset is lost without misconduct while duly held by the creditor.
Because debt and collateral value are equal, the full 80,000 is treated as constructively satisfied. This does not mean the pledgee had purchased the property; the result follows the special loss rule for pledges.
It would be wrong to treat the same amount as still collectible in full from the debtor after the constructive settlement.
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When pledged value equals the debt
Kitab al-Rahn: Pledge Formation, Possession, Liability and Eligible Collateral
Suppose Bakr owes 80,000 rupees and pledges an item worth 80,000. The asset is lost without misconduct while duly held by the creditor.
Because debt and collateral value are equal, the full 80,000 is treated as constructively satisfied. This does not mean the pledgee had purchased the property; the result follows the special loss rule for pledges.
It would be wrong to treat the same amount as still collectible in full from the debtor after the constructive settlement.