Regarding holding the Qur'an in Tarawih Prayers
Question :
We performed the Tarawih prayers in the holy month of Ramadhan in the American city of Fresno and a dispute took place regarding the recitation from the Noble Book. Some of the brothers said that it is not permissible to recite from the Book in Tarawih prayers, while others said that it is permissible, due to the fact that there was no one present among the brothers who had memorized the whole of the Noble Qur'an.
Answer:
If your situation was as you have described it, then it was permissible for your Imam to read from the Book in Tarawih. Indeed, in cases such as yours, that would be recommended according to the Islamic law, because it is preferred for the recitation in Tarawih prayer to be long and that could not be done by the likes of yourselves without the Imam reading from the Book. It has been narrated by Abu Dawud in Kitabul-Masahif, via Ayyub, from Ibn Abi Mulaikah, that 'A'ishah, may Allah be pleased with her, was being led in prayers by her servant, Thakwan and he was reading from the Book. And Ibn Abi Shaybah said: "Waki' informed us, on the authority Hisham bin 'Urwah, on the authority of Ibn Abi Mulaikah, on the authority of 'A'ishah, may Allah be pleased with her, that she freed a slave belonging to her and he used to lead her (in prayer) in Ramadhan, using the Book.
Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 2 Pages 304-305