Supreme Court of India has ruled that arrears of maintenance payable to a wife and children will take precedence over claims by secured creditors, operational creditors, and other financial claimants. This decision was made in the case of Apurva @ Apurvo Bhuvanbabu Mandal v. Dolly & Ors., emphasizing that the right to maintenance is a subset of the fundamental right to dignity under Article 21 of the Constitution.
𝗖𝗮𝘀𝗲 𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱
The appellant-husband, a businessman who owned a diamond factory, faced a steep financial downturn due to business losses, leading to recovery proceedings against him. Despite claiming reduced income, the High Court of Gujarat had earlier directed him to pay enhanced maintenance: ₹1,00,000 per month to his wife and ₹50,000 per month to each of his two children. These amounts were significantly higher than the maintenance awarded by the Family Court, which had initially granted ₹6,000 to the wife and ₹3,000 per child.
The husband challenged the High Court’s order, citing his inability to pay due to financial hardships. However, the Supreme Court upheld the wife and children’s right to maintenance, modifying the amounts slightly but asserting that maintenance arrears must take precedence over creditor claims.
𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁’𝘀 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗲
• 𝙿̲𝚛̲𝚒̲𝚘̲𝚛̲𝚒̲𝚝̲𝚢̲ ̲𝚘̲𝚏̲ ̲𝙼̲𝚊̲𝚒̲𝚗̲𝚝̲𝚎̲𝚗̲𝚊̲𝚗̲𝚌̲𝚎̲: The Court held that the wife and children’s right to maintenance arises from their right to dignity and sustenance, which outweighs the statutory rights of financial creditors under laws like the Insolvency and Bankruptcy Code, 2016.
• 𝙸̲𝚖̲𝚙̲𝚊̲𝚌̲𝚝̲ ̲𝚘̲𝚗̲ ̲𝙳̲𝚎̲𝚙̲𝚎̲𝚗̲𝚍̲𝚎̲𝚗̲𝚝̲𝚜̲: The Court noted that the wife and children, being financially dependent, require maintenance for a dignified life, even amid the husband’s financial struggles.
• 𝙱̲𝚒̲𝚗̲𝚍̲𝚒̲𝚗̲𝚐̲ ̲𝙾̲𝚋̲𝚕̲𝚒̲𝚐̲𝚊̲𝚝̲𝚒̲𝚘̲𝚗̲𝚜̲: The Court directed that arrears of maintenance must be recovered first, even from the sale of the husband’s assets, before settling claims of secured creditors or other claimants.
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