Can Voluntary Loans Impact Maintenance Payments? MP HC Clarifies the Rules

The Indore bench of the Madhya Pradesh High Court has recently ruled that voluntary loan deductions made by a respondent after separation cannot be used as a basis to challenge or limit the enhancement of maintenance payments under Section 125 of the CrPC. This decision was rendered in the case concerning the calculation of maintenance for a petitioner, Smt. Monika, against her husband, Praveen.

Justice G. S. Ahluwalia presided over the matter, focusing on the respondent’s claim that his monthly home loan repayments should reduce his maintenance obligations. The Court found that since the loan was voluntarily undertaken after the separation, and the loan amount was received in advance and being repaid in installments, it does not qualify as a statutory or mandatory deduction.

In detailing its judgment, the Court noted that the loan, taken post-separation to diminish the respondent’s net income, was a deliberate move and thus should not impact the calculation of maintenance. Justice Ahluwalia emphasized that the primary objective of maintenance under Section 125 CrPC is to prevent the dependent spouse from falling into destitution, rather than to punish the paying spouse.

The petitioner had challenged the Family Court's decision that awarded ₹5,000 per month in maintenance, arguing that this amount was insufficient given her husband's net salary of ₹38,373. She sought an increase based on the claim that her husband's financial declarations were inconsistent with his actual earnings, citing additional maintenance of ₹7,500 provided under the Protection of Women from Domestic Violence Act (PWDVA).

The respondent, however, contended that the total maintenance should reflect his financial commitments, including ₹13,700 in monthly loan repayments. Nonetheless, the Court referenced the Supreme Court's ruling in Rajnesh v. Neha, asserting that maintenance is designed to ensure the dependent spouse’s livelihood, not to penalize the providing spouse.

The High Court concluded that the maintenance amount should be increased to ₹7,500 per month, in alignment with the existing support under the PWDVA. This revised amount will be effective from the date of the application. Justice Ahluwalia's ruling underlined that the total maintenance was deemed modest considering the prevailing cost of living and economic conditions.

Case Title: Smt. Monika vs. Praveen

Case No: Criminal Revision No. 205 of 2024