The Delhi HC after analyzing the Best International Practises with respect to the disclosure of assets and income in matrimonial dispute to ascertain the maintenance to be provided, issued directions, and formulated affidavits of assets, income, and expenditure. The court even incorporated the benevolent features of the recent guidelines issued w.r.t judgment debtor in Bhandari Engineers Case.
The court while granting maintenance has to ascertain the same by analyzing the income, assets of both the parties. The court in Kusum Sharma Case in 2015 formulated some guidelines regarding the affidavits related to income, assets of the parties which were modified in 2017, and is again being modified to make it more comprehensive whereby Annexure 2 is being added.
The guidelines for disclosure are as follows:-
- A salaried person has to disclose his employment details including salary, D.A., commissions, incentives, bonuses, perks, perquisites, other benefits, 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
- Disclosure Income from other sources including 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.
- Immovable property like financial assets including bank accounts, DEMAT accounts, safety deposit lockers; investments including FDRs, stocks, shares, insurance policies, loans, foreign investments needs to be disclosed.
- Disclosure of movable assets including motor vehicles, mobiles, computer, laptop, electronic gadgets, gold, silver, and diamond jewelry, etc and intangible assets; garnishee(s)/trade receivables; corporate/business interests; disposal and parting away of properties; properties acquired by the family members, inheritance.
- Disclosure of standard of living and lifestyle- 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 the mobile, wristwatch, 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 put also put emphasis on the simultaneous filing of the affidavits to prevent the undue advantage to the party who files later.
The court reiterated the guidelines for Annexure B1 as per the Bhandari Engineers case.
Additional guidelines:-
- Upon failure to file affidavits, the court will direct the party to do the same.
- The Court shall grant an opportunity to the parties to respond to the affidavit of the opposite party and list the maintenance application for hearing.
- The court may direct the parties to file affidavit of income, assets etc. at the time of marriage or one year before or at the time of separation
- Upon non-disclosure of assets, the other party may seek relevant documents under Order XI of CPC
- The Court under Section 30 C.P.C may order interrogatories, discovery, inspection, production of any document, and/or order any fact to be proved by affidavit.
- The court shall determine if oral examination is necessary u/s 165 of the Indian Evidence Act
- Ad-interim maintenance may be fixed on the basis of the admitted documents. Also upon delay of filing affidavits, if any hardship is faced, the court may grant ad-interim maintenance.
- The court may impose additional costs if the information under the affidavit is incorrect.
- The court may consider directing the petitioner to deposit such sum, as the Court may consider appropriate for payment to the respondent towards interim litigation/part litigation expenses; except in cases, such as, divorce petition by the wife who is unable to support herself and is claiming maintenance from the respondent-husband.
- The court shall bring to notice of the party who can claim permanent alimony and shall fix it on the basis of affidavits filed.
The Court finally said that the affidavits will be treated as guidelines to determine the true financial capacity/status of the parties and the guidelines shall be applicable in al matrimonial cases.
Case Details
Case- KUSUM SHARMA v. MAHINDER KUMAR SHARMA (FAO 369/1996)
Coram- HON'BLE MR. JUSTICE J.R. MIDHA
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