A division bench of Supreme Court did MCD settlement at 12 Crore rupees.
From Paras 14.4, 14.5 and 14.7,
14.4 In the instant case as well, the petitioner-wife has stated that the respondent-husband is a man of means with a net-worth of Rs.5,000 crores with multiple businesses and properties in USA and in India and that he had paid his first wife at least Rs.500 crores upon separation, excluding a house in Virginia, USA. Thus, she claims permanent alimony commensurate to the status of the respondent-husband and on the same principles as was paid to the first wife of the respondent. The respondent-husband on the other hand is willing to pay a reasonable amount to cover the difference in the income and expenditure of the petitioner-wife, which he feels should be in the range of Rs.20 to 40 lakhs as a one-time lump sum payment. Thus, there is a clear and significant divergence or “mismatch” between the offer and the desire.
14.5 We have serious reservations with the tendency of parties seeking maintenance or alimony as an equalisation of wealth with the other party. It is often seen that parties in their application for maintenance or alimony highlight the assets, status and income of their spouse, and then ask for an amount that can equal their wealth to that of the spouse. However, there is an inconsistency in this practice, because the demands of equalisation are made only in cases where the spouse is a person of means or is doing well for himself. But such demands are conspicuously absent in cases where the wealth of the spouse has decreased since the time of separation. There cannot be two different approaches to seeking and granting maintenance or alimony, depending on the status and income of the spouse. The law of maintenance is aimed at empowering the destitute and achieving social justice and dignity of the individual. The husband is under a legal obligation to sufficiently provide for his wife. As per settled law, the wife is entitled to be maintained as far as possible in a manner that is similar to what she was accustomed to in her matrimonial home while the parties were together. But once the parties have separated, it cannot be expected of the husband to maintain her as per his present status all his life. If the husband has moved ahead and is fortunately doing better in life post his separation, then to ask him to always maintain the status of the wife as per his own changing status would be putting a burden on his own personal progress. We wonder, would the wife be willing to seek an equalisation of wealth with the husband if due to some unfortunate events post-separation, he has been rendered a pauper?
14.7 But the petitioner-wife in the instant case has sought equalisation of status not just with the respondent-husband but also with the ex-wife of the respondent. In our opinion, this cannot be an acceptable approach. The fixation of alimony depends on various factors and there cannot be any straight-jacket formula for the same. Thus, the petitioner cannot simply claim an amount equal to what the ex-wife of the respondent had received or on the basis of the income of the respondent. The Court has to not just consider the income of the respondent-husband here, but also bear in mind other factors such as the income of the petitioner-wife, her reasonable needs, her residential rights, and other similar factors. Thus, her entitlement to maintenance has to be decided based on the factors applicable to her and not depend on what the respondent had paid to his ex-wife or solely on his income.
Index of Maintenance and Alimony judgments is here.
