كتاب المساقاة
22  
The Book of Musaqah
(4)
Chapter: It is recommended to waive debts
(4)
باب اسْتِحْبَابِ الْوَضْعِ مِنَ الدَّيْنِ
Sahih Muslim 1558 c

Ka'b b. Malik reported that he made a demand for the payment of the debt that Ibn Abu Hadrad owed to him. This hadith is narrated through another chain of transmitters and (the words are):

" He had to get the loan from Abdullah b. Hadrad al-Aslami. He met him and pressed him for payment. There was an altercation between them, until their voices became loud. There happened to pass by them Allah's Messenger (ﷺ) and he said: O Ka'b, and pointed out with his hand in such a way as he meant half. So he got half of what he (Ibn Abu Hadrad) owed to him and remitted the half."
قَالَ مُسْلِمٌ وَرَوَى اللَّيْثُ بْنُ سَعْدٍ، حَدَّثَنِي جَعْفَرُ بْنُ رَبِيعَةَ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ، هُرْمُزَ عَنْ عَبْدِ اللَّهِ بْنِ كَعْبِ بْنِ مَالِكٍ، عَنْ كَعْبِ بْنِ مَالِكٍ، أَنَّهُ كَانَ لَهُ مَالٌ عَلَى عَبْدِ اللَّهِ بْنِ أَبِي حَدْرَدٍ الأَسْلَمِيِّ فَلَقِيَهُ فَلَزِمَهُ فَتَكَلَّمَا حَتَّى ارْتَفَعَتْ أَصْوَاتُهُمَا فَمَرَّ بِهِمَا رَسُولُ اللَّهِ صلى الله عليه وسلم فَقَالَ ‏ "‏ يَا كَعْبُ ‏"‏ ‏.‏ فَأَشَارَ بِيَدِهِ كَأَنَّهُ يَقُولُ النِّصْفَ فَأَخَذَ نِصْفًا مِمَّا عَلَيْهِ وَتَرَكَ نِصْفًا ‏.‏
Reference : Sahih Muslim 1558c
In-book reference : Book 22, Hadith 25
USC-MSA web (English) reference : Book 10, Hadith 3781
  (deprecated numbering scheme)