Delhi HC Modifies Format Of Assets, Income And Expenditure To Be Filed By Parties To A Matrimonial Litigation [Read Judgment]

The Delhi High Court on Thursday modified the format of assets, income and expenditure that has to be filed by both the parties, at the very threshold of matrimonial litigation. In its judgment, single bench of Justice JR Midha has modified the format by incorporating International Best Practices alongside important questions and documents contained in the formats previously prescribed by the High Court in the following cases: Kusum Sharma I, - (2014) 214 DLT 493;Kusum Sharma II, (2015) 217 DLT 706;Kusum Sharma III, MANU/DE/2406/2017;Kusum Sharma IV, (2018) 246 DLT 1. The bench has also incorporated the benevolent features of its decision dated August 5, 2020, in the case Bhandari Engineers II- stipulating affidavit of assets, income and expenditure to be filed by the judgment-debtor in execution cases. Delhi HC Frames Formats Of Assets And Income For Disclosure Of Judgment Debtor's Financial Capacity, Asks Centre To Consider Incorporating In Statute Filing of comprehensive format of assets, income and expenditure in matrimonial cases is essential to determine the maintenance. In this backdrop the High Court expressed that mandatory filing of the affidavit by the parties should be incorporated in the statutes, as is done in the developed countries. "Let this suggestion be considered by the Central Government," the bench observed while also directing that the Judgment be circulated to all concerned courts, the Delhi Judicial Academy and the National Judicial Academy.Also Read: Right To Maintenance: Why High Courts Should follow The Lead Taken By The Delhi High Court The High Court has annexed the new format to its order as 'Annexure 2'. The same may be accessed at the end of this report. These modified directions/guidelines shall apply to all matrimonial cases including cases under Hindu Marriage Act, 1955; Protection of Women from Domestic Violence Act, 2005; Section 125 Cr.P.C.; Hindu Adoption and Maintenance Act, 1956; Special Marriage Act, 1954; Indian Divorce Act, 1869; Guardians and Wards Act, 1890 and Hindu Minority and Guardianship Act, 1956. The modified affidavit requires the parties to disclose the following information: In case of a salaried person—particulars of his employment including salary, D.A., commissions, incentives, bonus, perks, perquisites, other benefits, Income tax etc.In case of a self-employed person—the nature of business/ profession, share in the business, net worth of the business, number of employees, annual turnover/gross receipts, gross profit, Income Tax, net income and regular monthly withdrawal/drawings from the business.Income from other sources—agricultural income, rent, interest on bank deposits and other investments, dividends, mutual funds, annuities, profit on sale of movable/immovable assets etc. Particulars of immovable properties— financial assets including bank accounts, DEMAT accounts, safety deposit lockers; investments including FDRs, stocks, shares, insurance policies, loans, foreign investments; Particulars of movable assets—motor vehicles, mobiles, computer, laptop, electronic gadgets, gold, silver and diamond jewellery etc.; intangible assets; garnishee(s)/trade receivables; corporate/business interests; disposal and parting away of properties; properties acquired by the family members, inheritance. Standard of living and lifestyle—credit/debit cards, membership of clubs and other associations, loyalty programmes, social media accounts, domestic helps and their wages, mode of travel in city and outside city, category of hotels, category of hospitals for medical treatment, frequency of foreign travel, frequent flyer cards, brand of mobile, wrist watch, pen, expenditure ordinarily incurred on family functions, festivals and marriage of family members etc.Expenditure— on housing, household expenditure, maintenance of dependents, transport, medical expenditure, insurance, entertainment, holiday and vacations, litigation expenses, discharge of liabilities, etc. The Court has clarified that affidavits of both the parties should be taken on record "simultaneously". "The simultaneous filing of the affidavit by the parties would avoid any undue advantage to the party who files his/her affidavit later. It is clarified that the affidavit of assets, income and expenditure is not to be filed along with the petition/application/ or written statement/reply," the order states. Other guidelines to be observed by the Family Courts include: Upon completion of the pleadings in the maintenance application, the Court shall fix the date for reconciliation and direct the parties to simultaneously file the affidavits of their assets, income and expenditure. The Court shall direct the party seeking maintenance to produce the passbook of his/her savings bank account in which maintenance can be directly deposited/transferred by the opposite...

Delhi HC Modifies Format Of Assets, Income And Expenditure To Be Filed By Parties To A Matrimonial Litigation [Read Judgment]

Akshita Saxena

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