Muslim

Hadith Commentary:
Vocabulary of the Hadith:
Fay’:
It refers to returning and coming back.
Allah Almighty says:
(MA AFĀ’ ALLĀHU ‘ALĀ RASŪLIHI)
That is:
The wealth which Allah has returned to His Messenger (sallallahu alayhi wa sallam). In technical terms, it refers to that wealth which is acquired from the disbelievers without fighting.

Benefits and Issues:
From this hadith, it is understood that if Muslims overpower a settlement of disbelievers without launching an attack, and the disbelievers hand over their wealth peacefully and amicably, then that wealth will be considered fay’, which will go entirely into the public treasury (bayt al-mal) and will be used for the welfare of the Muslims. It will not be distributed among the warriors like war booty (ghanimah). However, if the people of a settlement are in open hostility against Allah and His Messenger (sallallahu alayhi wa sallam), and the Muslims overpower them by force and through battle, and acquire wealth from them, then that wealth will be considered war booty (ghanimah). One fifth of it will be set aside, and the remaining four parts will be distributed among the warriors.

Benefits and Issues:
From this narration, it apparently seems to be understood
that the land acquired as a result of fighting should, after extracting the khums (one-fifth share), be distributed among the warriors as spoils of war (ghanimah).
And above, the position of Imam Abu Dawud and that of Umar radi Allahu anhu has been stated to be contrary to this.
The reconciliation and harmonization in this matter is as follows, as is the statement of Imam Malik:
That regarding such lands, after the consensus of all those Muslims among whom this land is to be distributed, the leader of the Muslims (Imam al-Muslimin) may exercise discretion.