Islam permits just retaliation for a wrong, but consistently praises the higher path: 'whoever pardons and makes reconciliation, his reward is with Allah' (Qur'an 42:40). The pious are described as 'those who restrain anger and pardon people,' and Allah loves such doers of good (Qur'an 3:134). The Prophet (ﷺ) taught that pardoning is no loss, saying, 'no one pardons (an injustice) except that Allah increases him thereby in honor,' so overlooking others' faults raises rather than lowers a believer.
Evidence — the daleel
On deen2u
Informational, not a personal fatwa. Consult a qualified scholar for rulings on your situation.