Delhi HC on 07-08-2020 adapted the format of assets, income, and expenditure that has to be filled by both the Parties in matrimonial cases to determine the maintenance.
In Kasum Sharna v. Mahinder Kumar Sharma, Single bench of justice JR Midha modified the format with the incorporation of International Best Practices as done by developed countries. In many developed countries, the law prescribes a comprehensive format of assets, income, and expenditure to be filed by both the parties at the very threshold of matrimonial litigation. However, there is no provision of law in our country for directing the parties to disclose their assets, income, and expenditure in a particular format.
Court also considered it appropriate to incorporate the benevolent features of in the format of the Bhandari Engineers & Builders Pvt. Ltd. v. Maharia Raj Joint Venture affidavits of assets, income, and expenditure in this case.
Referring to Bhuwan Mohan Singh v. Meena, AIR 2014 SC 2875, the Court stated that the Supreme Court in this case held that “delay by the family court in the adjudication of maintenance is against the basic embodiment of dignity of an individual.”
The adapted new directions will apply to matrimonial cases including cases under
- Hindu Marriage Act,1955
- Hindu Adoption And Maintenance Act, 1965
- Hindu Minority and Guardianship Act, 1956
- Protection of Women from Domestic Violence Act, 2005
- Section 125 of the Criminal procedure Code, 1973
- Guardian and Wards Act, 1890
- Indian Divorce Act, 1869
- Special Marriage Act, 1954
The modified guidelines direct parties to disclose detailed information, such as
- If the person is a salaried person then particulars of his employment, D. A., commissions, bonus and income tax, etc.
- A self-employed person is required to disclose the nature of business/ profession, share in the business, the 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.
- Parties are further required to disclose income from other sources, namely, agricultural income, rent, interest on bank deposits and other investments, dividends, mutual funds, annuities, profit on the sale of movable/immovable assets, etc. With respect to the assets, the parties are required to disclose the particulars of the immovable properties, financial assets including bank accounts, DEMAT accounts, safety deposit lockers; investments including FDRs, stocks, shares, insurance policies, loans, foreign investments; movable assets including motor vehicles, mobiles, computer, laptop, electronic gadgets, gold, silver and diamond jewelry, etc.; intangible assets; garnishee(s)/trade receivables; corporate/business interests; disposal and parting away of properties; properties acquired by the family members, inheritance. The affidavit requires the parties to disclose their standard of living and lifestyle, namely, credit/debit cards, membership of clubs and other associations, loyalty programs, social media accounts, domestic help and their wages, mode of travel in the city and outside the city, category of hotels, category of hospitals for medical treatment, frequency of foreign travel, frequent flyer cards, the brand of mobile, wristwatch, pen, expenditure ordinarily incurred on family functions, festivals and marriage of family members, etc.. The affidavit further requires the disclosure of expenditure on housing, household expenditure, maintenance of dependents, transport, medical expenditure, insurance, entertainment, holiday and vacations, litigation expenses, discharge of liabilities, etc.
The court made it clear that the affidavits of income, assets, expenditure should be filed by parties simultaneously.
The court made it clear that the filing of comprehensive details of assets, income, and expenditure help in determining the maintenance. Filing of an affidavit by the parties should be incorporated in the statutes, the bench suggested.
“This Court is of the view that the mandatory filing of the affidavit of assets, income, and expenditure by the parties in a detailed prescribed form should be incorporated in the statutes, as in the developed countries. Let this suggestion be considered by the Central Government.”