Wife, who Contributed to Acquisition of Family Assets by Performing Household Chores Entitled to Equal Share in Property Purchased by Husband: Madras HC [Read Order]

In a revolutionary decision the Madras High Court ruled that the wife, who contributed to acquisition of family assets by performing household chores entitled to equal share in property purchased by husband.

The plaintiff was working in Neyveli Lignite Corporation. Since the plaintiff got a job in a Steel Company in Saudi Arabia, he started earning a lot of money. After the plaintiff left for Saudi Arabia, the 1st defendant, the wife of the plaintiff, continued to live in Neyveli with their children and she was entrusted with the funds of the plaintiff which had swollen to huge proportions.

The plaintiff, Kannaian Naidu had filed and injunction suit in 2002 contending that his wife (the first defendant) was trying to encroach the properties that were purchased on his behalf while he was working abroad from the money he earned. The plaintiff also submitted that the wife had sought assistance from another man to alienate the properties and also accused her of leading a wayward life.

The plaintiff submitted that she regularly used to withdraw money from that account and deposited in her account; that she was corresponding with the plaintiff and admitting the amount sent by the plaintiff; she also denied that though the properties are in her name they were intended to be purchased only for the benefit of the plaintiff. She also denied that she is a benamidaar and she was leading a way ward life squandering the plaintiff’s money.

The 1^st defendant submitted that as a dutiful wife, she has complied with all the reasonable requests and demands of the plaintiff. That apart, she knows tailoring and used to earn money through that.

The Courts below have categorically held that the benami transaction would not attract in respect of the properties purchased for the benefit of the husband and the 1st defendant is only holding the property in trust for the benefit of her husband.

A Single Judge Bench of the Madras High Court of Justice Krishnan Ramaswamy, observed that “This Court can very well recognize the contribution made by the 1st defendant/wife towards the purchase of the properties by her husband either directly or indirectly not only in money or in money’s worth, but also the contribution made by looking after the home and taking care of the family.”

The Bench further noted that “No law prevents the Judges from recognizing the contributions made by a wife facilitating her husband to purchase the property. In my view, if the acquisition of assets is made by joint contribution (directly or indirectly) of both the spouses for the welfare of the family, certainly, both are entitled to equal share.”

“When the husband and wife are treated as two wheels of a family cart, then the contribution made either by the husband by earning or the wife by serving and looking after the family and children, would be for the welfare of the family and both are entitled equally to whatever they earned by their joint effort. The proper presumption is that the beneficial interest belongs to them jointly. The property may be purchased either in the name of husband or wife alone, but nevertheless, it is purchased with the monies saved by their joint efforts” the Court commented.

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