In a significant ruling, the Delhi High Court has clarified that a husband's income earned in a foreign currency cannot be mechanically converted into Indian rupees for the purpose of determining spousal maintenance. The observation came from Justice Amit Mahajan while adjudicating cross-challenges to a family court's interim maintenance order.
Court Rejects Mechanical Conversion of Foreign Earnings
The case involved a couple where the wife sought an enhancement of interim maintenance, while the husband appealed for its reduction. The Family Court had initially directed the husband to pay Rs 50,000 per month as interim maintenance. The wife contended before the High Court that her husband was employed with Amazon in the United States and earned over Rs 1 crore per annum. She stated she was unemployed with no independent income.
Justice Mahajan, in his order, firmly stated that "mere earning in foreign currency does not, by itself, entitle the wife to claim maintenance by mechanically converting the husband’s foreign income into Indian currency." The court emphasized that applying standard formulas used in Indian cases without considering the specific circumstances would be incorrect.
A Holistic View on Cost of Living and Expenses
The bench provided crucial reasoning for its stance. It noted that the husband is obligated to incur significant expenses in foreign currency for his sustenance abroad. Furthermore, the court recognized that the cost of living in the USA cannot be equated with that in Delhi. This contextual understanding is vital for a fair assessment.
The husband had argued that his wife was highly qualified and had voluntarily left her job despite having earning capacity. However, the court proceeded on the factual admission that the wife was not gainfully employed at the time.
Maintenance Enhanced to Rs 1 Lakh Based on "Informed Guesswork"
Justice Mahajan acknowledged that determining interim maintenance is not an exact science, especially when one spouse works abroad and has not provided full financial disclosure. The process, the court said, often involves "a degree of estimation and informed guesswork."
The judgment also clarified that a husband's duty to maintain his wife does not imply that the entire husband's income must be equalized or proportionately reflected in the maintenance amount. After evaluating all facts, and considering the wife's unemployed status, the court deemed it appropriate to enhance the maintenance. The interim maintenance was raised from Rs 50,000 to Rs 1,00,000 per month.
The court described this revised figure as a "broad, reasonable, and rounded-off assessment" based on the totality of circumstances. This ruling underscores a nuanced approach in matrimonial cases involving non-resident Indians and international incomes, balancing rights with realistic economic assessments.
