The valuation of an asset on the basis of the proceeds of sale at the prevailing market price (i.e., through liquidation). For example, in the case of sharika, the profit can be distributed on the basis of tandhidh feeli or tandhidh hukmi, depending on whether the musharaka assets are disposed of (liquidated) for good or kept on the venture’s books. Tandhidh feeli involves complete liquidation of the assets, while the rightful owner receiving the proceeds of liquidation in full.
Tandhidh feeli (also tandhidh haqiqi) is an Arabic term (تنضيض فعلي) that translates as actual valuation/ liquidation.
