A Research Analysis of Bay al-Muzayadah (Auction Sale) in Pakistani Markets in the Light of Islamic Jurisprudence

Abstract

This research explores the permissibility of Bay al-Muzayadah (auction sale) in Islamic jurisprudence, with a particular focus on the roles and actions of commission agents in Pakistani markets. The study investigates prohibited practices such as Najash (artificially inflating prices without intent to buy) and Sawm ala Sawm Akhih (bidding over a fellow Muslim’s bid unjustly), which are explicitly condemned in authentic Hadith. The Prophet Muhammad (PBUH) forbade such deceptive methods to ensure fairness and trust in trade. The research also presents the views of the four major Islamic schools of thought (Hanafi, Maliki, Shafii, and Hanbali) regarding auction sales, highlighting that while auctions are generally permitted, they must adhere to ethical principles and avoid deception. Special attention is given to the conduct of commission agents who often manipulate bids for personal gain. The study concludes by recommending Shariah-compliant guidelines to ensure integrity, transparency, and justice in auction-based transactions in contemporary markets.