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The "thou" in this and the following two verses - as well as in verse {113} - refers, on the face of it, to the Prophet; by implication, however, it is addressed to everyone who has accepted the guidance of the Qur'an: this is evident from the use of the plural "you" in verse {109}. Consequently, the attempt on the part of most of the commentators to explain this passage in purely historical terms is not very convincing, the more so as it imposes an unnecessary limitation on an otherwise self-explanatory ethical teaching of general purport.
The Commentators explain this passage with reference to the case of Taima ibn Ubairaq, who was nominally a Muslim but really a Hypocrite, and given to all sorts of wicked deeds. He was suspected of having stolen a set of armour, and when the trial was hot, he planted the stolen property into the house of a Jew, where it was found. The Jew denied the charge and accused Taima, but the sympathies of the Muslim community were with Taima on account of his nominal profession of Islam. The case was brought to the Prophet, who acquitted the Jew according to the strict principle of justice, as "guided by Allah." Attempts were made to prejudice him and deceive him into using his authority to favour Taima. When Taima realized that his punishment was imminent he fled and turned apostate. The general lesson is that the righteous man is faced with all sorts of subtle wiles; the wicked will try to appeal to his highest sympathies and most honourable motives to deceive him and use him as an instrument for defeating justice. He should be careful and cautious, and seek the help of Allah for protection against deception and for firmness in dealing the strictest justice without fear or favour. To do otherwise is to betray a sacred trust; the trustee must defeat all attempts made to mislead him.