All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
This Hadeeth is the Hadeeth of Huthayfah ibn Al-Yamaan that the Prophet, sallallaahu ‘alayhi wa sallam, said to him: “You listen and obey the Ameer (commander/ruler) even if your back is struck and your wealth is taken, listen and obey.” [Muslim]
As to limiting obedience to individuals instead of groups in this Hadeeth, we could not find any such thing from any of the commentators on this Hadeeth, not An-Nawawi or anyone else. Rather, Ash-Shawkaani, said in Nayl Al-Awtaar: "In it (this Hadeeth) there is evidence for obeying the rulers even if they reached in their tyranny and oppression the point of beating those under their care and taking their wealth, so this is a specific exception to the generality of His (Allaah's) Saying: {So whoever has assaulted you, then assault him in the same way that he has assaulted you.}[Quran 2:194] and His Saying: {And the retribution for an evil act is an evil one like it.}[Quran 42:40] Ibn Abi Al-‘Izz, the Hanafi scholar, said in Sharh Al-‘Aqeedah At-Tahaawiyyah: "As for adhering to their obedience, even if they were oppressive, then that is because leaving their obedience will result in corruption many times worse than what comes from their tyranny. Rather, having patience upon their oppression will expiate sins and multiply rewards.""
The scholars who disagree with this are respected for their Ijtihaad (personal diligence), as the situation dictates he (the scholar) will receive either one or two rewards (i.e. one reward if he is wrong in his Ijtihaad or two rewards if he is right). But it is not permissible to follow him if it is clear that he made a mistake or if there is no evidence found supporting his opinion or if there is evidence against it. For more information, please refer to Fatwa 115611 regarding the stance Muslims should have if the ruler is oppressive.
Finally, we advise the scholars and callers to Allaah to discuss these issues in a scholastic manner far from being strict and fanatical (on either side of the argument). Also, caution should be taken from involving the youth in such disagreements, which could result in an end that is not praiseworthy.
Allaah Knows best.