Taking Loan in Wife’s Name and not Repaying it is Ground for Divorce


June 22, 2018

Case name: Smt. Manpreet Verma v. Brij Verma


In a recent case, the High Court of Uttarakhand granted divorce to the wife holding that taking loan in the name of wife and not repaying it was mental agony and amounted to cruelty.

The Appellant wife in the case sought divorce on the grounds of cruelty. One of the averments by the Appellant in the case was that the husband was in habit of taking loans and he also took loan in the name of wife i.e. appellant and he also made her guarantor in some loans. Subsequently, he failed to repay his loans and as a result, appellant faced embarrassment.

The High Court of Uttarakhand ruled in favor of the wife and also granted a decree of divorce. The High Court observed as under:

  • That taking of loan is neither an offence nor shameful act but failed to repay it may cause embarrassment, as lender comes to recover his loan by any means. It also maligns the reputation of a person is society.
  • With reference to the facts of the present case, the Court observed that the Appellant is a house wife. Respondent also took loan in the name of his wife / appellant and also made her guarantor. Appellant had no source of income and she was deserted by her husband and in such circumstance, it was very painful for her to live because she has no source of income but has to repay the loan.
  • The High Court also referred to Supreme Court’s judgment in the case of Maya Devi vs. Jagdish Prasad[1], wherein the Apex Court elaborately discussed the expression “cruelty” under the Hindu Marriage Act.
  • The High Court noted that all the activities and conducts of the respondent husband in the case were sufficient to establish the cruelty meted out by him to appellant.

The entire case can be accessed here.


[1] AIR 2007 SC 1426