A loan is lending of cash from one person, association or unit to another person, association or unit. It is a debt which is supposed to be returned to the person giving it in the first place. Sometimes the person giving loan charges interest. Interest based loan is haram in Islam. Even without interest loan is allowed but discouraged in Islam. A lot of people out there have a very relaxed approach in this matter and take loans easily, not for important stuff but for progress and expanding the business. They are not helpless but they just want to enlarge their businesses or buy new cars to fulfill their dreams or other temporary luxuries of this life.[irp]
A Saudi court ordered a judge to pay back SR 2.6 million in cash to a citizen, which he took as a loan from him to use in his side business he had been working on for some time. The lawyer of the citizen, named Ahmad Al Sidairy, justified his client in the court. He said that the judge had a liability to his client for an amount of SR 4 million, which his client gave in 2012 to maintain the judge’s side business. The judge worked as a real estate dealer in sunset hours. The lawyer, Al Sidairy said that his client had asked the judge to give back the cash but the judge only paid back an insufficient part of the total amount and that too after many requests. His client filed a lawsuit against the judge in a court in Riyadh for not returning his debt.
He said that the judge denied of the loan and said that the cash was a loan but an investment in his business by the client. Al Sidairy also said that after the investigations the court took the decision in favor of his client. The court ordered the judge to return his client’s SR 2.6 million. The judge filed an application at a Madinah court testing the decision.
He submitted fake papers to confirm that the cash was not a debt and that he should not be forced to return anything to his client. He said that the Court of Appeals went through the case and upheld the decision in favor of his client, willing the judge to return SR 2.6 million.[irp]
At last, he said that the decision is final. If the judge wants to show new proofs and claims related to the case, he should file a new lawsuit. Islam takes the debt as a dangerous act and warns against it and urges the Muslim to stay away from it as much as possible. But nowadays we don't take this matter that seriously.
Source: Al Arabiya