Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Muslim adjudicators may issue rulings involving interest when required by secular law, especially if they are not personally benefiting and have no lawful alternative. Scholars permit such actions under the principle of necessity and differentiate between exploitative riba and modern regulated interest. Maintaining integrity and intention while serving the community is aligned with Islamic values.
Responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
Clarifying the Question
Before addressing your concern, let us restate the issue for clarity:
You are a Muslim serving as a tribunal judge in Canada. As part of your legal responsibilities, you are sometimes required to order interest payments on returned security deposits in tenancy disputes. While you understand that Islam prohibits interest (Riba), the law leaves no room for exemption. You have sought alternatives but were not granted accommodations. Naturally, you are concerned about the Islamic permissibility of issuing such rulings and how this aligns with your faith.
The Ruling: You Are Not at Fault
Many contemporary Muslim scholars agree that in situations where there is no alternative and the individual is simply fulfilling their professional duties justly and impartially, it is permissible to proceed. Here’s why:
- Not All Interest Is Treated Equally in Islamic Jurisprudence
Some scholars differentiate between the Riba strictly forbidden in the Quran and the modern form of interest found in today’s regulated legal systems. Modern interest:
- Is part of a broader civil framework
- Is non-exploitative in nature
- Does not resemble the usurious practices condemned in early Islamic societies
While this view represents a minority opinion, it is held by credible and respected scholars.
- Necessity Permits What Is Normally Forbidden
Islamic law upholds the principle: “Necessities make the prohibited permissible.”
When there is no viable alternative, and the act is not done for personal gain but as part of a mandated legal responsibility, exceptions may apply. Your intent to uphold justice rather than to profit personally places your situation under this category.
- Muslim Representation in Public Roles Is Essential
Islam strongly encourages Muslims to engage in public service roles where they can:
- Ensure fairness and impartiality
- Uphold Islamic ethics and values
- Serve and protect minority and marginalized communities
If Muslims withdraw from such positions due to unavoidable legal limitations, it may lead to a lack of understanding and inadequate representation of Muslim perspectives in public institutions.
Final Verdict
You may continue serving in your role with a clear conscience, provided you:
- Fulfill your duties justly and without personal benefit
- Maintain a sincere intention to serve the public and uphold justice
- Seek accommodations where possible, even if not granted
Your efforts contribute to justice, fairness, and the well-being of the community—principles deeply valued in Islam.
Further elaboration can be found in these fatwas:
- Working for a Company of Interest-based Finance: OK?
- Can’t Find a Job Except in a Bank: What Should I Do?
- Is Working a Security Job if Owner Sells Forbidden Items Haram?
- Can I Accept Marriage Proposal from Relation Manager in a Bank?
- Is Working as Software Engineer in Banks Allowed in Islam?
- Working for Non-Islamic Banks: Permissible?
Almighty Allah knows best.