'Permanent Alimony Is Awarded To Ensure Decent Living Standard For Wife' : Supreme Court Reiterates Factors To Be Considered

The Supreme Court (on July 15), while ordering the dissolution of marriage, observed that the award of maintenance or permanent alimony should not be penal. It should be for the purpose of ensuring a decent living standard for a wife. The Court, in the present case, ordered the husband to pay Rs. 2 Crores to his wife as permanent alimony. The Bench of Justices Vikram Nath and Prashant Kumar Mishra relied upon a thread of precedents to reach the one-time settlement amount. The decisions included Vishwanath Agrawal v. Sarla Vishwanath Agrawal., (2012) 7 SCC 288. It was observed that permanent alimony is to be granted after considering largely the social status, conduct of the parties, the parties' lifestyle, and other such ancillary factors.Pertinently, in the case of Rajnesh v. Neha and Another (2020), the Court laid down several factors for calculating the maintenance amount. These factors include but are not limited to:i. Status of the parties, social and financial.ii. Reasonable needs of the wife and dependent children.iii. Qualifications and employment status of the parties.iv. Independent income or assets owned by the parties.v. Maintain standard of living as in the matrimonial home.vi. Any employment sacrifices made for family responsibilities.vii. Reasonable litigation costs for a non-working wife.viii.Financial capacity of husband, his income, maintenance obligations, and liabilities.Status of parties significant factorDeducing from the observations of the above precedent, the Court elaborated that the status of the parties is a significant factor. Further, the reasonable needs of the wife and children should also be examined. "The status of the parties is a significant factor, encompassing their social standing, lifestyle, and financial background. The reasonable needs of the wife and dependent children must be assessed, including costs for food, clothing, shelter, education, and medical expenses. The applicant's educational and professional qualifications, as well as their employment history, play a crucial role in evaluating their potential for self-sufficiency. If the applicant has any independent source of income or owns property, this will also be taken into account to determine if it is sufficient to maintain the same standard of living experienced during the marriage. Additionally, the court considers whether the applicant had to sacrifice employment opportunities for family responsibilities, such as child-rearing or caring for elderly family members, which may have impacted their career prospects," the Court stated.With respect to the husband's financial capacity, the Court said that his actual income, reasonable expenses for his own maintenance, and any dependents he is legally obligated to support should be examined. His liabilities and financial commitments are also to be considered to ensure a balanced and fair maintenance award.,” the Court added. Building on these observations, the Court weighed the relevant factors. It noted that both parties are educated and employed, have high standards of living, and have dependants to be taken care of. It observed that while the husband's monthly income was over Rs. 8 Lakhs, the wife's monthly income was Rs.1,39,000.Apart from this, the Court brought its attention to the responsibilities of both parties against their dependents. The husband was responsible for the medical expenses and stay of his parents. On the other hand, his wife was responsible for her parents as well as for her minor daughter.“It is evident from their submissions that though both of them are well qualified and gainfully employed, the respondent-husband earns approximately five times the monthly income of the appellant-wife. Respondent-husband has certain obligations towards three dependants, his own expenses, and certain bank loans, but he also evidently has the financial capacity to maintain his former wife.,” the Court said.It may also be noted that the wife had demanded Rs. 5 to 7 Crores as a one-time settlement. However, the husband was willing to pay only Rs. 50 Lakhs.Considering the above facts, circumstances, and relevant factors, the Court reached a fair and balanced amount of Rs 2 Crores. The Court added that this amount would also cover all pending and future claims.Brief BackgroundThe Division Bench was hearing an appeal, preferred by the wife, against the Delhi High Court judgment. The challenged judgment rejected her prayer to seek attachment to her husband's bank account and complete payment of interim maintenance to her. The factual background is marred by several legal proceedings initiated by both parties. It may be noted that within one year of marriage, the appellant-wife registered a complaint, inter alia, of cruelty and demand for dowry. When the case reached the Top Court, it was heard in chambers (in private and not in open Court). The Court noted at the outset that the parties had been living separately for the last nine years. Apart...

'Permanent Alimony Is Awarded To Ensure Decent Living Standard For Wife' : Supreme Court Reiterates Factors To Be Considered

Gyanvi Khanna

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'Permanent Alimony Is Awarded To Ensure Decent Living Standard For Wife' : Supreme Court Reiterates Factors To Be Considered

Gyanvi Khanna

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