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Supreme Court of India· 08 April 2026

Can a husband's resignation from directorships in family companies, followed by a plea of financial incapacity, be treated as a subterfuge to evade maintenance?

XXX v. YYY
2026 INSC 334 · Civil Appeal arising out of SLP (Civil) No. 28311 of 2024
Coram: Sandeep Mehta; Vikram Nath
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Answer

Yes. Where the husband resigned from directorships in companies connected to the family business in order to escape his financial liabilities towards maintenance, the claim of financial incapacity is nothing but a subterfuge to evade his legal and moral obligations, and his portrayal of lacking financial resources to provide accommodation is an artificial veil sought to be created to escape liability.

Headnote

Constitution of India — Art. 142 — Matrimonial dispute — Irretrievable breakdown of marriage — Quashing of all proceedings inter se, including those against relatives and legal counsels — Permanent alimony and child support — Custody and visitation rights — Financial capacity — Constitution of India — Art. 142 — Irretrievable breakdown — Complete justice — Quietus to litigation — Held: Where a decade of vindictive and vexatious litigation has left the marriage dead for all practical purposes, this is a supremely fit case to exercise jurisdiction under Article 142 of the Constitution of India. That jurisdiction extends not merely to annulling the marriage but to terminating all proceedings initiated and pending inter se, including those against the relatives and legal counsels of a spouse. (¶56, 62) Maintenance — Financial capacity of the husband — Resignation from directorships — Qualifications of the wife — Held further: That the wife is highly educated and professionally qualified cannot by itself absolve the husband of his matrimonial, paternal, moral and legal responsibility to provide for his wife and children. Resignation from directorships in family companies to escape financial liabilities renders the claim of financial incapacity a subterfuge and an artificial veil created to escape liability. (¶58, 59, 60) Custody — Relocation of the children by the mother — Permanent alimony — Balancing of equities — Held further: No oblique motive can be imputed to a mother who relocates the children away from a city of intense hostility and multiple litigations, such a step being nothing else but a protective measure. To balance the equities a consolidated sum was awarded in full and final settlement of permanent alimony, maintenance, child support and litigation expenses; appeal disposed of. (¶57, 61, 62)

In the Court's own words
Paragraph 59The appellant-wife has taken a specific plea that the respondent-husband was earlier a Director in various companies connected to the family business and just in order to escape his financial liabilities towards maintenance, he resigned from these directorships and enrolled as a lawyer. We find force in the submission that the respondent-husband’s claim of financial incapacity is nothing but a subterfuge to evade his legal and moral obligations.
Paragraph 60The appellant-wife is currently occupying a flat which is allegedly owned by her father-in-law i.e., the father of the respondent-husband. The value of the said flat is stated to be approximately Rs. 5 crores, which is precisely the amount sought by the appellant-wife during the course of oral hearing so that she could secure suitable accommodation and maintain her sons. Though, the respondent-husband has denied having the financial capacity to pay such amount, but looking at the background from which the parties hail, we feel that the attempt of the respondent-husband to portray himself as lacking the financial resources to provide accommodation to his wife and sons is nothing but an artificial veil sought to be created to escape liability.
Acts & Sections
Art. 142 Constitution of India, 1950

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Also decided in this judgment
Can the Court, while dissolving a marriage under Article 142 of the Constitution of India, also terminate all proceedings pending between the parties, including those against their relatives and legal counsels?Does a wife being highly educated and professionally qualified absolve the husband of his responsibility to provide for her and the minor children?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections