Khula is a form of divorce under the Mohammedans law. This separation by mutual agreement which takes effect at once. A Mohammedans wife cannot maintain a suit to compel her husband to give her a khula. “If a Muslim husband confers power of dissolving the marriage on the wife in exchange of money or property, it is called Khoola or mubarat” [Abdur Rahman on Muhammadan Jurisprudence, p. 338]

“Khula” means the dissolution of the marriage bond, at the instance of the wife and upon her offer to make compensation (financial or otherwise) in return for a release from the marriage [in terms of an agreement between the spouses according to Islamic Law]. [Recently recommended by Al-Azhar]

The wife is entitled to the dissolution of marriage on the restoration of what she received in consideration of marriage if the judge apprehends that the parties will not observe the limits of God. [Siddiq vs. Shafran (1968) 20 DLR (WP) 117]