The ruler is given the choice between summoning them and judging between them, or leaving them, whether they are from one religion or from different religions. This is what was explicitly stated by Ahmad, and it is the view of al-Nakha'i and one of the two statements of al-Shafi'i. Abu Khattab reported another narration from Ahmad that it is mandatory to judge between them. This is the second view of al-Shafi'i and the preference of al-Muzani, based on the saying of Allah the Almighty: "And judge between them by what Allah has revealed." It is also because he is obligated to repel whoever intends to wrong one of them without right, so judging between them becomes mandatory upon him, like two Muslims.
Our evidence is the saying of Allah the Almighty: "So if they come to you, judge between them or turn away from them." He gave him a choice between the two matters, and there is no disagreement that this verse was revealed regarding those with whom the Messenger of Allah (peace and blessings of Allah be upon him) had entered into a treaty among the Jews of Medina. Moreover, because they are both disbelievers, judging between them is not mandatory, like those who are under a treaty (mu'ahadun). The verse they cited as evidence is interpreted as referring to those who choose for judgment to be between them, due to His saying: "And if you judge, judge between them with justice," reconciling the two verses, for one should not resort to abrogation when reconciliation is possible. Once this is established, if he judges between them, it is not permissible for him to judge except by the law of Islam, due to the two verses and because it is not permissible for him to judge except with justice, as is the case regarding the rights of Muslims. Whenever he judges between them, he enforces his judgment upon them, and whoever among them refuses, he forces him to accept his judgment and holds him to it; because he only entered into the covenant on the condition of abiding by the laws of Islam. Ahmad said: Their affairs are not investigated, and they are not asked about their affairs, unless they come to them. If they elevate [their dispute] to us, we implement the hadd upon them, according to what the Prophet (peace and blessings of Allah be upon him) did. He also said: Our judgment is binding upon them, and our judgment is valid for all religious denominations, but the ruler does not call them; if they come, we judge according to our law. Once this is established, if someone from the People of the Covenant who has committed an act prohibited in their religion—such as adultery, theft, slander, or murder—is brought to the ruler, he must implement the hadd punishment upon him. If it is adultery, he is flogged if he is a virgin (not muhsan) and exiled for a year; and if he is muhsan (formerly married/chaste), he is stoned, for it is narrated from Ibn Umar that the Prophet (peace and blessings of Allah be upon him)
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(3) Surah al-Ma'idah: 49. (4) Surah al-Ma'idah: 42.