Fiqh-us-Sunnah Volume 5, Hajj and ‘Umrah, Fiqh 5.072A.
The Hanafi school holds that cleanliness from impurities is not a necessary condition, but an obligation which, if not found, may be compensated by a sacrifice. Thus if someone performs a Tawaf in a state of minor impurity his tawaf will be valid, but he will have to offer a sheep in sacrifice. If such a person is junub or ha’id his or her tawaf will still be valid, but he or she will have to sacrifice a camel as a penalty and repeat the tawaf as long as he or she is in Makkah. As to the cleanliness of clothes or body, the Hanafi school takes it as a sunnah only.
Ibn ‘Abbas reported that the Prophet (peace be upon him) said: “Tawaf is (similar to) a prayer… but Allah, the Almighty, has made talking for one (engaged in tawaf) permissible. So, whoso speaks (while performing tawaf) should say only good things. (Tirmizhi and Ad-Daraqutni. Also reported by Al-Hakim, Ibn Khuzaimah and Ibn Al-Sakan as a sound hadith)
‘Aishah reported that the Prophet (peace be upon him) entered her apartment and found her crying. He asked her, “Has your monthly course set in?” That is, are you weeping because you are menstruating? She replied, “Yes.” Upon this the Prophet (peace be upon him) said, “This is a matter inscribed by Allah, the Almighty, for all daughters of Adam. You should perform all the rites of Hajj, except tawaf (circumambulation) – which you should perform after taking a complete bath (when you are clean).” (Reported by Muslim) ‘Aishah also said: “The very first thing that the Prophet (peace be upon him) did upon arriving in Makkah was to perform Wudu and then make a tawaf of Ka’bah.” (Bukhari and Muslim)
There is consensus that if one suffers from an illness that causes one to be continuously impure physically, such as leaking urine or continuous bleeding in the case of a menstruating woman, one may perform tawaf without incurring any penalty or need for making compensation. Malik related that a woman came to Abdullah bin Umar seeking a verdict. She said, “I came to the Sacred Mosque to perform tawaf, but when I arrived at the door of the Mosque I started bleeding. So I went away and waited until I became clean, and then returned to the Sacred Mosque. But again when I arrived at the door I started bleeding. I went back and returned when I was clean. But when I arrived at the door of the Mosque I started bleeding again. (What should I do?)” Ibn ‘Umar said, “That bleeding is a spurt from the devil. You should take a bath, place some pads on your private parts, and then perform your tawaf.”