Unpaid ₹13.5 Lakh Settlement Doesn’t Undo Divorce; Karnataka HC Upholds Decree, Orders Husband To Pay With 10% Interest

The parties married on 23 February 2003 and had three children.

The husband petitioned for divorce under Sections 13(1)(ia) and 13(1)(ib) of the Hindu Marriage Act, 1955, alleging cruelty and desertion.

The wife denied the allegations.

During the proceedings, the parties signed a mediation settlement on 17 September 2013: the husband paid ₹6,00,000, with a further ₹13,50,000 due.

The balance was not paid; the parties disputed whether the wife had refused payment instruments tendered by the husband.

The Family Court granted divorce under Section 13(1)(ia).

The wife appealed under Section 19(1) of the Family Courts Act, 1984, challenging the decree and relying, among other things, on the unpaid settlement amount.

The Court considered Sections 13(1)(ia) and 13(1)(ib) of the Hindu Marriage Act, 1955, which provide grounds for divorce based on cruelty and desertion, and Section 19(1) of the Family Courts Act, 1984, under which the appeal was brought.

The Court held that a party alleging non-compliance with a settlement reached in mediation should pursue enforcement of that settlement; non-payment, by itself, was not a basis to set aside the divorce decree.

The Court upheld the Family Court’s conclusion that the wife’s conduct, including her alleged failure to cooperate in completing the settlement after entering into it, supported the finding of continuing harassment and cruelty.

It treated the husband’s non-payment of the balance as a separate matter: the wife’s remedy was to enforce the settlement, rather than challenge the divorce decree on that ground.

The Court nevertheless directed payment of the outstanding balance with interest.

The divorce decree dated 29 September 2018 was confirmed, and the husband was directed to pay ₹13,50,000 to the wife with interest at 10% per annum from the date of the petition until realization.