The Lahore High Court addressed whether the 10% annual increase in maintenance allowance, under Section 17-A(3) of the Family Courts Act, 1964, should be calculated on a compound basis or a non-compound basis.
The Court passed a judgment on 9th October 2024 on how the annual increase in maintenance allowance should be calculated under Section 17-A(3) of the Family Courts Act, 1964.
What Court Helds?
- The statutory 10% annual increase in maintenance allowances must be calculated on a compound basis unless explicitly stated otherwise in the decree.
- The court clarified that compound basis calculation means the 10% increase applies to the total amount of maintenance from the previous year (including the previous year’s increase), rather than the original amount fixed by the court. In short, the increase is dynamic and not static.
- Maintenance decrees are not meant to remain static; they must evolve to protect against inflation and meet future needs.
What Does Compound Basis Mean?
A compound basis means the 10% increase is applied to the total maintenance amount from the previous year, including any prior increases. On the other hand, non-compound basis is where the increase is calculated only on the original fixed amount.
Why This Matters?
The court press that this method protects the financial stability, particularly wives and children, by accounting for inflation and evolving needs. It also saves dependants from the burden of frequent litigation for the enhancements of maintenance allowance.
Broader Implications
- The precedent applies to pending cases and directs family courts to calculate maintenance increases accordingly. But this judgment does not have any retrospective effect, meaning thereby, it does not apply to cases that have already been concluded.
- For future clarity, the court has sent the judgment to the Punjab Government to make appropriate amendments in relevant laws, clarifying the method of calculation.
Conclusion
In conclusion, this landmark judgment has made sure that maintenance allowances of wife and children will increase fairly and equitably over time, safeguarding the rights of women and children in Pakistan.
This judgment has been approved for reporting but has not yet been published in legal journals. However, our valuable readers can request a copy directly from us through WhatsApp no. 0310-8888539.
Note:
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