austlii:cth/FedCFamC1F/2025/741
General information, not legal advice.
FedCFamC1F
2025-10-21
Wilson J
Original judgment source is linked above.
Khosrow & Khosrow [2025] FedCFamC1F 741
FAMILY LAW - STAY APPLICATION - the wife seeking to stay the execution of a warrant of possession over the property - parties consented to the dismissal without an adjudication on the merits.
DISCLOSURE - the wife alleges the husband has failed to disclose various documents - orders previously made for disclosure had not been complied with - held, husband must provide exhaustive disclosure within 14 days and if he is non-compliant will be required to show cause as to why his amended response should not be stayed until he provides adequate disclosure.
Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth) rr 6.01, 15.07
American Cyanamid v Ethicon Ltd [1975] UKHL 1; [1975] AC 396
Australian Coarse Grain Pool Pty Ltd v Barley Marketing Board (Qld) (No 1) (1982) 57 ALJR 425
Bacall v Zagar [2020] FamCA 350
Barker v Barker [2007] FamCA 13; (2007) 36 Fam LR 650.
Black v Black [2008] FamCAFC 7; (2008) 38 Fam LR 503
Bunbury v Fuller [1853] EngR 768; (1853) 156 ER 47
Cardile v LED Builders Pty Ltd [1999] HCA 18; (1999) 198 CLR 380
Chang v Su [2002] FamCA 156; (2002) 29 Fam LR 406
DJL v Central Authority [2000] HCA 17; (2000) 201 CLR 226
DMW v CGW [1982] HCA 73; (1982) 151 CLR 491
Epitoma Pty Ltd v Australian Meat Industry Employees' Union (No 2) [1984] FCA 202; (1984) 3 FCR 55
Federated Engine-Drivers and Fireman's Association of Australasia v Broken Hill Pty Co Ltd [1911] HCA 31; (1911) 12 CLR 398
Flight v Robinson [1844] EngR 826; [1884] 50 ER 9
Hancock & Hancock [2023] FedCFamC1F 429
Hazeldell Ltd v The Commonwealth [1924] HCA 36; (1924) 34 CLR 442
In the Marriage of Black & Kellner (1992) 12 Fam LR 343
In the Marriage of Briese [1985] FamCA 23; (1985) 10 Fam LR 642
In the Marriage of Giunti [1986] FamCA 15; (1986) 11 Fam LR 160
In the Marriage of Kannis [2002] FamCA 1150; (2002) 30 Fam LR 83
In the Marriage of Mezzacappa [1987] FamCA 20; (1987) 11 Fam LR 957
In the Marriage of Monte [1986] FamCA 1
In the Marriage of Morrison [1994] FamCA 153; (1994) 18 Fam LR 519
In the Marriage of Stein [1986] FamCA 27; (1986) 11 Fam LR 353
In the Marriage of Suiker [1993] FamCA 141; (1993) 17 Fam LR 236
In the Marriage of Weir [1992] FamCA 69; (1992) 16 Fam LR 154
Inglis v Commonwealth Trading Bank of Australia [1972] HCA 74; (1972) 126 CLR 161
Investec Bank (Australia) Ltd v Glodale Pty Ltd [2009] VSCA 97; (2009) 24 VR 617
Jess & Jess (No 7) [2023] FedCFamC1F 291
Kennon v Spry [2008] HCA 56; (2008) 238 CLR 366
National Australia Bank Ltd v Bond Brewing Holdings Ltd [1991] VicRp 31; [1991] 1 VR 386
Norton v Locke [2013] FamCAFC 202; (2013) 50 Fam LR 517
Official Trustee in Bankruptcy v Nedlands Pty Ltd (In liq) [2000] FCA 599; (2000) 99 FCR 554
Old UGC Inc v Industrial Relations Commission of New South Wales [2006] HCA 24; (2006) 225 CLR 274
Oriolo v Oriolo [1985] FamCA 54; (1985) 10 Fam LR 665
Peacock v Newtown Marrickville and General Co-operative Building Society No 4 Ltd [1943] HCA 13; (1943) 67 CLR 25
Public Service Association of South Australia Inc v Industrial Relations Commission (SA) (2012) 249 CLR 398
R v Gray; ex parte Marsh [1985] HCA 67; (1985) 157 CLR 351
R v Ross-Jones; ex parte Green [1984] HCA 82; (1984) 156 CLR 185
Re Macks; ex parte Saint (2000) 204 CLR 158
Robins v Incentive Dynamics Pty Ltd [1999] FCA 1651; (1999) 91 FCR 423
Tableland Peanuts Pty Ltd v Peanut Marketing Board (1984) 58 ALJR 283
Tarok & Kardan (No 4) [2024] FedCFamC1F 543
Waterman & Waterman [2017] FamCAFC 23
Willocks v Anderson [1971] HCA 28; (1971) 124 CLR 293
Yunghanns v Yunghanns [1999] FamCA 64; (1999) 24 Fam LR 400
Zhang v Zemin [2010] NSWCA 255; (2010) 79 NSWLR 513
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
THE COURT ORDERS BY CONSENT THAT the wife's application in a proceeding sealed 10 October 2025 is dismissed without an adjudication on the merits.
Note: The form of the order is subject to the entry in the Court's records.
Note: This copy of the Court's Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
IT IS NOTED that publication of this judgment by this Court under a pseudonym Khosrow & Khosrow has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
(a) this court ("FCFCOA") does not have jurisdiction to order a stay of an order made by the Supreme Court of Victoria; and
(b) if, contrary to that contention the FCFCOA does have jurisdiction to stay an order made by the Supreme Court of Victoria, then in all the circumstances the order made by the Supreme Court of Victoria should not be stayed.
(a) the very first duty of any court approaching a cause before it is to consider its jurisdiction;[2]
(b) even if parties do not raise any issue about the court's jurisdiction, it is competent and proper for the court to do so of its own motion;[3]
(c) parties cannot consent to jurisdiction if jurisdiction does not exist;[4]
(d) where highly contested questions of fact arise upon which the court's authority depends, the grant of jurisdiction carries with it the power to determine facts upon which the jurisdiction of the court depends;[5]
(e) even if a court determines that it has no jurisdiction to determine the controversy presented in the contested application before it, then in the exercise of its implied jurisdiction it has authority to stay or dismiss the proceeding for want of jurisdiction and to go on to make a costs order;[6]
(f) authority of the Full Court of the Family Court of Australia is to like effect as is the proposition in the immediately preceding paragraph;[7] and
(g) the Full Court decision in Yunghanns v Yunghanns drew a distinction between jurisdictional facts as opposed to adjudicational facts, the difference being explained in seven propositions[8] which drew on the observations of the High Court in DMW v CGW[9] as well as in R v Ross-Jones; ex parte Green[10] in the following terms -
"(1) Before making orders in proceedings (including interlocutory orders) the Family Court of Australia, as a court of limited jurisdiction, must be satisfied:
(a) that it has jurisdiction to make those orders in the proceedings; and
(b) that it is appropriate to exercise that jurisdiction by making those orders on the facts of the case as then known to it.
(2) The Court always has jurisdiction to entertain proceedings for the purpose of and up to the point of deciding whether it has jurisdiction to make the orders sought in the proceedings.
(3) In carrying out that limited exercise of jurisdiction, the Court is required to determine any essential facts upon which the existence of its jurisdiction to make the orders sought ultimately depends (the jurisdictional facts). That determination is a function which is incidental to the exercise of the jurisdiction referred to in (2) above.
(4) Where, from the very nature of the proceedings and the relief claimed, the substantive proceedings prima facie fall within the definition of 'matrimonial cause' in s 4(1) of the Act, the jurisdiction to determine the jurisdictional facts, as an incident of determining whether it has jurisdiction to make the orders, is itself a matrimonial cause, and therefore within the exclusive jurisdiction of the Court.
(5) There is a distinction between the jurisdictional facts, as defined under (3), above, and the facts the existence of which it is necessary to establish in order to entitle the applicant (subject to discretionary considerations) to an exercise in his or her favour of the jurisdiction which the Court has (the adjudicational facts).
(6) Once a respondent challenges the Court's jurisdiction to make the orders sought, the Court, before considering the adjudicational facts, must find the existence of the jurisdictional facts, on the balance of probabilities.
(7) However, once that threshold of jurisdiction is crossed, in the case of interlocutory proceedings (at least where what is sought is an injunction in the same or similar terms to the permanent injunction sought in the substantive proceedings) the Court, before making an order, does not need to find the existence of the adjudicational facts, but only that there is a serious issue to be tried as to their existence, and that the balance of convenience supports the making of the order: American Cyanamid v Ethicon Ltd,[11] Australian Coarse Grain Pool Pty Ltd v Barley Marketing Board (Qld) (No 1),[12] Tableland Peanuts Pty Ltd v Peanut Marketing Board[13] and Epitoma Pty Ltd v Australian Meat Industry Employees' Union (No 2).[14]"
(a) no express statutory provision exists in the FLA or in the FCFCOA governing the power of the FCFCOA to make an order staying the operation of an order made by another court; and
(b) the FCFCOA, being a court created by statute, possesses very limited inherent jurisdiction, namely, power to control its own process and to prevent abuse of its own process
in my view the FCFCOA possessed no inherent jurisdiction to make an order staying the operation of an order made by another court.
(a) a valid contract for the sale of the property had already been executed;
(b) B Bank is the holder of a default judgment debt against the husband (the registered proprietor of the property);
(c) no application - let alone a successful application - was brought by the husband to set aside the default judgment;
(d) B Bank had regularly and properly enlivened the process of the Supreme Court of Victoria in respect of execution of its default judgment against the property; and
(e) if an order were made staying the execution process, the purchaser of the property was likely to be adversely affected in his, her or its use and enjoyment of the property.
(a) the respondent had misrepresented his financial circumstances through failing to disclose income of at least $140,000 per annum and ongoing employment and third party transfers;
(b) the wife provided consent to negotiate and seek potential buyers which was taken out of context to mean she agreed to the property being sold;
(c) at the time of sending the text message with her alleged agreement to the property being sold, the wife was recovering from major surgery and the agent stayed at the applicant's property until she complied with his request to send the text message;
(d) the applicant did not understand that her text message would be treated as her irrevocable consent to the sale of the property;
(e) the applicant was not a party to the proceeding in the Supreme Court of Victoria and she was unaware of the notice to vacate until she was contacted by the sheriff in September 2025;
(f) the applicant resided with her two children at the property and eviction will result in their homelessness; and
(g) the applicant had no alternate accommodation, rental references, funds for bond or extended family support.
(a) all bank accounts held in his name or that of a related entity;
(b) all tax returns and assessments for the years ending 30 June 2019 to date;
(c) any employment contracts, payslips or other proof of income since 30 June 2019;
(d) any property assets real or otherwise in Australia or overseas;
(e) all superannuation accounts;
(f) copies of any share certificates, cryptocurrency or other investments or related entities;
(g) all trust accounts, holdings and entities in his name or that of a related entity; and
(h) all other investments.
(a) the order for the husband to provide bank accounts and statements was only partially complied with and that the husband had still not provided disclosure in respect of -
(i) numerous bank statements for various months and years within the required disclosure period;
(ii) overseas bank accounts;
(iii) no source documentation had been provided to explain transfers exceeding $600,000 to third parties;
(iv) a $715,750 loan drawdown and $397,399 internal repayment at G Bank was omitted;
(v) a $203,000.52 surplus from refinancing the property was omitted;
(vi) a $116,953.77 redundancy payment received on 24 July 2024 was omitted;
(vii) in excess of $264,555.32 in unexplained external transfers were omitted;
(viii) property related payments of $134,522.50 and $89,995.63 in property related payments were omitted; and
(ix) multiple large cash withdrawals and transfers between $10,000 and $50,000 including via J Bank, CBA, H Bank, NAB and the K Bank were omitted;
(b) his employment contract;
(c) financial records and ownership details concerning seven Australian real properties and two Indian properties;
(d) shares in any listed or unlisted companies;
(e) cryptocurrency holdings or exchange accounts;
(f) bonds, managed funds or similar investments;
(g) trust accounts and related entities;
(h) overseas investments;
(i) business interests; and
(j) loans, private equity or similar holdings.
(a) the duty of disclosure is a concept derived from equity;[23]
(b) full and frank disclosure of all material facts is a fundamental requirement in financial matters[24] and a party in a property proceeding has a duty to make full disclosure of his or her financial affairs;[25]
(c) the duty is absolute;[26]
(d) full and frank disclosure of financial matters between the parties is basic to the process of the court and is one of the elements of the Family Law Act and the process of the court;[27]
(e) the duty exists as to provide a basis on which the parties are in a position to resolve the case by agreement or to proceed to a hearing as expeditiously as may reasonably be done;[28] and
(f) the duty is to make disclosure of all information relevant to the case in a timely manner.[29]
"By reason of a breach of the duty of disclosure, the uppermost limit of what can be ordered to be transferred to one party in an application under s 79 is the whole of the ascertained property of the parties (Monte).[30]
It is not open to one party who has failed to fulfil the obligation of full and frank disclosure to rely on that failure so as to prevent the making of an order against that party in default (Giunti,[31] Black v Kellner,[32] Oriolo[33]).
The failure to disclose relevant financial information may lead a court to draw inferences against the person who failed to disclose the information. However, it is not appropriate to transfer the task of establishing relevant financial factors from the parties to the trial judge (Steiner).[34]
Where there is clear evidence of non-disclosure the court should not be unduly cautious of making findings in favour of the innocent party (Weir,[35] Monte).
Once there is sufficient evidence to support a finding that a party has not made full disclosure, the court has jurisdiction to make an order in relation to unidentified and undisclosed property (Weir, Monte).
It is beside the point whether non-disclosure was wilful or accidental or whether it was the result of misfeasance or nonfeasance. The duty to disclose is absolute. Where the court is satisfied that the whole truth has not come out the court might more readily conclude that the asset pool was greater than demonstrated. In those circumstances it might be appropriate to err on the side of generosity to the party who might otherwise be seen to be disadvantaged by the lack of complete candour (Chang v Su,[36] Weir, Kannis[37]).
The obligation to make full and frank disclosure is regarded as being so crucial to the functioning of this jurisdiction that the deliberate failure by one party to meet that obligation may result in the court drawing adverse inferences against the non-disclosing party, where there is material on which such an inference can be based (Stein, Mezzacappa,[38] Giunti, Morrison[39] and Barker[40])."
I certify that the preceding forty-three (43) numbered paragraphs are a true copy of the ex tempore reasons for judgment of the Honourable Justice Wilson.
[2] Hazeldell Ltd v The Commonwealth [1924] HCA 36; (1924) 34 CLR 442, Federated Engine-Drivers and Fireman's Association of Australasia v Broken Hill Pty Co Ltd [1911] HCA 31; (1911) 12 CLR 398, Old UGC Inc v Industrial Relations Commission of New South Wales [2006] HCA 24; (2006) 225 CLR 274, Robins v Incentive Dynamics Pty Ltd [1999] FCA 1651; (1999) 91 FCR 423 and Zhang v Zemin [2010] NSWCA 255; (2010) 79 NSWLR 513.
[3] Official Trustee in Bankruptcy v Nedlands Pty Ltd (In liq) [2000] FCA 599; (2000) 99 FCR 554.
[4] Bunbury v Fuller [1853] EngR 768; (1853) 156 ER 47.
[5] DMW v CGW [1982] HCA 73; (1982) 151 CLR 491, R v Gray; ex parte Marsh [1985] HCA 67; (1985) 157 CLR 351, Re Macks; ex parte Saint (2000) 204 CLR 158, Kennon v Spry [2008] HCA 56; (2008) 238 CLR 366 and Public Service Association of South Australia Inc v Industrial Relations Commission (SA) (2012) 249 CLR 398.
[6] Peacock v Newtown Marrickville and General Co-operative Building Society No 4 Ltd [1943] HCA 13; (1943) 67 CLR 25 and Willocks v Anderson [1971] HCA 28; (1971) 124 CLR 293.
[7] Yunghanns v Yunghanns [1999] FamCA 64; (1999) 24 Fam LR 400, Black v Black [2008] FamCAFC 7; (2008) 38 Fam LR 503 and Norton v Locke [2013] FamCAFC 202; (2013) 50 Fam LR 517.
[8] Yunghanns v Yunghanns [1999] FamCA 64; (1999) 24 Fam LR 400, 432-3.
[15] [2000] HCA 17; (2000) 201 CLR 226, 240 (at [25] et seq).
[19] Inglis v Commonwealth Trading Bank of Australia [1972] HCA 74; (1972) 126 CLR 161.
[20] Investec Bank (Australia) Ltd v Glodale Pty Ltd [2009] VSCA 97; (2009) 24 VR 617 (Court of Appeal of the Supreme Court of Victoria).
[21] National Australia Bank Ltd v Bond Brewing Holdings Ltd [1991] VicRp 31; [1991] 1 VR 386.
[23] Flight v Robinson [1844] EngR 826; [1884] 50 ER 9.
[24] In the Marriage of Black & Kellner (1992) 12 Fam LR 343.
[25] In the Marriage of Weir [1992] FamCA 69; (1992) 16 Fam LR 154.
[26] In the Marriage of Kannis [2002] FamCA 1150; (2002) 30 Fam LR 83.
[27] In the Marriage of Suiker [1993] FamCA 141; (1993) 17 Fam LR 236.
[28] In the Marriage of Briese [1985] FamCA 23; (1985) 10 Fam LR 642
[29] In the Marriage of Briese [1985] FamCA 23; (1985) 10 Fam LR 642, In the Marriage of Suiker [1993] FamCA 141; (1993) 17 Fam LR 236, In the Marriage of Morrison [1994] FamCA 153; (1994) 18 Fam LR 519 and Waterman & Waterman [2017] FamCAFC 23.
[30] In the Marriage of Monte [1986] FamCA 1.
[31] In the Marriage of Giunti [1986] FamCA 15; (1986) 11 Fam LR 160.
[32] In the Marriage of Black & Kellner (1992) 12 Fam LR 343.
[33] Oriolo v Oriolo [1985] FamCA 54; (1985) 10 Fam LR 665.
[34] In the Marriage of Stein [1986] FamCA 27; (1986) 11 Fam LR 353.
[35] In the Marriage of Weir [1992] FamCA 69; (1992) 16 Fam LR 154.
[36] Chang v Su [2002] FamCA 156; (2002) 29 Fam LR 406.
[37] In the Marriage of Kannis [2002] FamCA 1150; (2002) 30 Fam LR 83.
[38] In the Marriage of Mezzacappa [1987] FamCA 20; (1987) 11 Fam LR 957.
[39] In the Marriage of Morrison [1994] FamCA 153; (1994) 18 Fam LR 519.
[40] Barker v Barker [2007] FamCA 13; (2007) 36 Fam LR 650.
American Cyanamid
Ethicon Ltd
(1982) 151 CLR 491
(1984) 3 FCR 55
(1924) 34 CLR 442
(1986) 11 Fam LR 160
(2009) 24 VR 617
(2013) 50 Fam LR 517
(2008) 38 Fam LR 503
(2000) 201 CLR 226
(1992) 12 Fam LR 343
(1987) 11 Fam LR 957
(1994) 18 Fam LR 519
(1986) 11 Fam LR 353
(1972) 126 CLR 161
(2000) 99 FCR 554
(1985) 10 Fam LR 665
(1985) 157 CLR 351
(1984) 156 CLR 185
(2000) 204 CLR 158
(2002) 30 Fam LR 83
(1992) 16 Fam LR 154
(2008) 238 CLR 366
(1999) 91 FCR 423
(2010) 79 NSWLR 513
(1982) 57 ALJR 425
(2007) 36 Fam LR 650
(1999) 198 CLR 380
(2002) 29 Fam LR 406
(1911) 12 CLR 398
(1985) 10 Fam LR 642
(1993) 17 Fam LR 236
(2006) 225 CLR 274
(1943) 67 CLR 25
(2012) 249 CLR 398
(1984) 58 ALJR 283
(1971) 124 CLR 293
(1999) 24 Fam LR 400