Dear Tejwant and Spn,
Thank you both for your posts.
My understanding of the Shabad is that Kabir is referring, first of all, to Muslim and Hindu fanatics who declare each others scriptures to be false. He then tells them that, contrary to this understanding, one should view neither the Vedas, the Bible or the Qur'an as "false" but rather should contemplate their overall teachings and moral messages deeply.
Kabir is trying to enlighten people to see the utter futility of fighting or arguing over the teachings of various "holy books" of the world and not to claim that they are not true or useless to living a wise life.
The Sri Guru Granth Sahib ji, by including such a poem by Kabir, is suggesting that people should read sacred scriptures - any sacred scriptures - with the right frame of mind, a searching, open, respectful, impartial, non-judgemental state of mind and not to form a negative judgement regarding any of the holy books. To comprehend the underlying reality; the fullness of truth conveyed in the philosophy of any faith cannot be achieved by a casual look at a few lines of the holy text quoted out of context, bereft of its historicity, genre or subtext. Some religions require many years of deep investigation to reach a developed, fair and penetrating insight. Hence why in a religion such as Judaism, whose central sacred scripture the passage on Lot is from, has developed exegesis disciplines such as the mystical Kabbalah tradition which expounds verses of the Torah with an informed, spiritualized reading that might not be apparent to the casual reader. In Christianity centuries of church fathers, mystics and theologians such as the scholastics have formed a vast, almost unimaginably huge and diverse exegetical tradition which views the Bible as having "four senses":
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Religious people have put great efforts into expounding and understanding various layers in their scriptures.
Kabir was an ecumenist. He refused to identify himself purely with either the Islam of his birth or the Hinduism he encountered in his teenage years. Rather he formed his own inclusive path: The Kabir Panth.
He tried to embody in his new path everything that he saw to be good, holy and true from the deepest reservoirs of Islamic and Vedantic spirituality. He probably was conversant with aspects of the Bible too, meaning that he tried to embody the non-dogmatic, spiritual aspects of Judaic and Christian scripture as well.
Kabir was therefore praised by all faiths as one of the greatest of all mystics for his clear, un-doctored insight into truth, uncoloured by religious fervour or doctrinal bias. He is one of the most impartial witnesses to spiritual realities that history has known.