LHC sets 10% annual hike in maintenance allowance

The Lahore High Court's division bench, led by Justice Shams Mehmood Mirza, ruled that a 10% annual increase in maintenance allowance should be calculated on a compound basis rather than on the principal amount.

The decision clarifies the calculation method for maintenance decrees that do not explicitly state how the annual enhancement should be applied.

In a 15-page judgment, the court interpreted Section 17-A(3) of the Family Court Act 1964 as a beneficial provision meant to protect recipients of maintenance against inflation.

The court concluded that when a decree is silent about the method of annual enhancement, the 10% increase should be applied on the merged amount each year. The case also highlighted contrasting decisions from earlier single-bench rulings, prompting the formation of a larger bench to address the issue.

The ruling is expected to impact numerous maintenance cases across the province, providing clarity on how annual increments should be computed.

The petitioners' counsel, along with the Assistant Attorney General, supported compound calculations, arguing that maintenance allowances serve as a vital lifeline for women and children.

They emphasised that the law must account for inflationary pressures to ensure the adequacy of maintenance.

On the other hand, the respondents' counsel argued for a non-compoundable, linear increase, contending that the court should not alter the legislature's intent, which, in their view, had not specified compound calculations.

The ruling addresses the growing need to strike a balance between ensuring fair maintenance for dependents and the financial capacity of those required to pay.