Download Project Report - Islamic Finance PDF

TitleProject Report - Islamic Finance
TagsIslamic Banking And Finance Lease Interest Banks
File Size1.8 MB
Total Pages92
Document Text Contents
Page 46


their own property.

4. The period of Musaqat should be specified, and if the beginning of

it is specified, and its end is fixed to be the time when fruits for that

year become available, the contract is in order.

5. It is necessary that the share of each one of them be fixed as 1/2 or

1/3 etc. of the crop.

6. It is necessary that the contract of Musaqat be concluded before the

appearance of the crop. And if the contract is made after the

appearance of the fruits and before they are ripe, the contract will

be in order, provided that some work like, watering and spraying

which are required for increasing the crop and protecting the trees,

still remain to be done. And if the work required to be done, is

merely plucking the fruits and looking after them, the contract is in

order but it is not Musaqat.

Termination of Musaqat

The parties involved can cancel the transaction of Musaqat with mutual

consent, and also if, when concluding the contract, they had agreed that

one or both of them would have the right to cancel it, then, he can do so

according to the agreement. And if in the contract of Musaqat, they had

laid a condition and that condition is not fulfilled, and if the person who

benefits from the condition is not able to compel the other party to fulfill

it, then, he can cancel the transaction.

The Musaqat transaction will not terminate with the death of the owner of

the orchard, and his heirs will act on his behalf. However, if the person

who has undertaken to look after the trees, dies and if they had agreed

Page 92



1. Bernard Lietar “Future of Money”

2. Bindu Vasu “Islamic Banking- Banking for a Change”

(RBI Legal News and Reviews- Jounal Section)

3. Mufti Barkatulla “Ethical Fusion”, Islamic Banking and

Finance Vol.7 Issue 3 No.23

4. Niladri Bhattacharya “Islamic funds likely to invest $1 bn”,

Business Standard (2008. 10th Jan)

5. Rodney Wilson “Islamic Finance and Ethical Investment”

6. Syed Zahid Ahmed, “Economics of Islamic Banking in India”,

RGE Monitor (2008, 11th Sept)

7. Report of the Working Group to examine financial instruments

used in Islamic Banking, RBI

8. Report on the Committee on Financial Sector Reforms, Planning

Commision, Govt. of India, “A hundred Small Steps”



11. http://www.





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