austlii:cth/FedCFamC1F/2026/110
General information, not legal advice.
FedCFamC1F
2026-02-23
Wilson J
Original judgment source is linked above.
FAMILY LAW - ex tempore reasons in a contested interlocutory application - where the husband unilaterally let his own premises to himself or to one of his companies in breach of consent orders - no evidence to substantiate how in fact and in law the husband could occupy the premises as both tenant and landlord - husband ordered to vacate the premises and comply with existing consent orders.
Family Law Act 1975 (Cth) ss 79, 114(1)(e)
McKay v Dick (1881) 6 App Cas 251
Redmond & Redmond [2014] FamCAFC 155
Secured Income Real Estate (Aust) Pty Ltd v St Martins Investments Pty Ltd [1979] HCA 51; (1979) 144 CLR 596
Smethurst v Commissioner of Australian Federal Police [2020] HCA 14; (2020) 272 CLR 177
SS & AH [2010] FamCAFC 13
Dr I.C.F. Spry, The Principles of Equitable Remedies: Specific Performance, Injunctions, Rectification and Equitable Damages (Law Book Company, 4th ed, 1990)
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
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 Melek & Melek has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
(a) the applications in the wife's application in a proceeding filed 5 February 2026; and
(b) the applications in the husband's response dated 11 February 2026.
(a) the husband's current occupation of the premises located at and known as B Street, Suburb C in the Northern Territory being the whole of the land more particularly described as lot [...] town of City D from plan [...] certificate of title volume [...] folio [...] ("the [B Street] property") is contrary to the consent orders made 11 August 2025;
(b) the husband must vacate the B Street property forthwith; and
(c) I refuse to make the orders sought in paragraph 3 of the respondent's response to the applicant's application in a proceeding filed 11 February 2025.
(a) the parties commenced a relationship in 2004 or thereabouts, they married in 2005 and separated in April 2022, although they have not yet divorced;
(b) they have three children, one born in 2008, one born in 2012 and one born in 2013;
(c) real and personal property falls for the making of orders under s 79 of the Family Law Act;
(d) at all relevant times the husband has been the sole director of G Pty Ltd;
(e) the wife asserted in her affidavit made 5 February 2026 that G Trust is the sole shareholder in G Pty Ltd and that the wife and the husband are trustees;[1]
(f) at all relevant times, H Pty Ltd was the trustee of the Melek Family Trust;
(g) the husband is the sole director of H Pty Ltd and the sole shareholder in it, although his shareholding is in a representative capacity as trustee for the Melek Family Trust; and
(h) H Pty Ltd carries on business which, according to the wife, is in direct competition with G Pty Ltd.
(a) the B Street property was previously let to L Company at an annual rental of a little over $101,000 with expenses being reimbursed;
(b) rental paid by and on behalf of L Company was paid into the husband's ANZ account;
(c) after the parties separated, the husband approved L Company subletting the B Street property in or about June 2023 at an annual rental of $95,000, the difference between that amount and the rental payable under the headlease being met by L Company;
(d) by February 2024 the wife ceased performing bookkeeping work associated with G Pty Ltd; and
(e) at that time (February 2024) L Company was in arrears of rental in the sum of more than $23,881.
(a) an outstanding water rates invoice applicable to the B Street property of $485; and
(b) outstanding council rates of $5,605.
(a) a tipper resulting in the lender serving a notice of default; and
(b) a utility van resulting in the lender also serving a notice of default.
On 11 August 2025, (the wife) and I entered into Orders by consent to appoint [Mr E] of [F Real Estate] to find a tenant for the property. That tenancy agreement was for a period of three (3) months and only expired on 12 November 2025. I now understand that there is a clause in the agreement that provides that the Agreement will continue unless formal termination is received.
(a) the parties consented to the procedure to be applied in the appointment of a tenant pursuant to paragraphs 9 and 10 of the orders made 11 August 2025;
(b) the arrangements for the appointment of Mr E as agent to effect the entry into a lease between the husband and a tenant did not have a time limitation to it;
(c) in order to procure the removal of the husband from the premises, a mandatory injunction is required;
(d) when the orders of 11 August 2025 were made the B Street property was vacant;
(e) the engagement of Mr E was dated 20 August 2025, very shortly after the consent orders dated 11 August 2025 were entered into;
(f) the husband took physical possession of the B Street property after executing the exclusive agency in favour of Mr E by which Mr E was appointed to secure a tenant;
(g) a tenant has been found which is ready, willing and able to enter into a tenancy in respect of the B Street property paying commercial rental thereby providing the parties with a return on the asset;
(h) the husband is unable to pay the rent which the arm's length tenant is willing to pay;
(i) the husband is hiding money;[3] and
(j) as to the husband paying the outgoings he seeks to pay from funds held in trust, Ms Farmer submitted that existing orders made by consent on 17 December 2024, provide for the husband to pay those expenses personally and not out of joint funds or out of funds held in trust.
(a) no evidence exists that the proposal for a tenancy dated 22 January 2026 has actually been executed;
(b) the husband accepted that all communications in respect of the letting of the B Street property since August 2025 were required to be orchestrated on a joint basis;
(c) the husband moved into the B Street property by reason of there being no other tenant in circumstances where the property continues to incur liabilities;
(d) Mr Hughes accepted that the husband unilaterally moved into the B Street property;
(e) prior to the husband moving into the B Street property, the husband gave no notice of his intention so to do;
(f) paragraph 9 of the consent orders required the husband to behave jointly with the wife in securing a tenant;
(g) Mr Hughes submitted that his client's status as an occupier of the B Street property was as owner;[4]
(h) the husband has paid no rent;
(i) seemingly inconsistently with Mr Hughes' earlier submissions that the husband occupied the B Street property as owner, Mr Hughes later submitted[5] that the husband's company occupied the B Street property (although Mr Hughes did not identify which of the husband's companies occupied the B Street property); and
(j) Mr Hughes conceded that if on the proper construction of events, the husband did not occupy the B Street property, there being no formal written notice of re-entry, then his company as occupant of the B Street property was as a squatter.[6]
HIS HONOUR: Well, okay. So tell me what colour of right does your client enjoy to have a squatter in occupation of a property where clause 9 of the consent orders intended for the premises to be rented to derive benefit for husband and wife?
MR HUGHES: There really isn't, your Honour, only on basis that the - - -
HIS HONOUR: Yes. That's the way I was looking at it at a preliminary level, anyway. But persuade me out of that view, please.
MR HUGHES: No. I can't argue with your Honour in relation to that position, only that the effect, if the lease is executed in favour of the husband, means that if it's the same amount as the proposed business, it effectively starts producing money - - -
HIS HONOUR: Well, that's great if he does what he says, but he hasn't done it.
MR HUGHES: Correct.
(a) the husband's continued occupation of the B Street property; and
(b) payment of the amounts the husband wanted paid from funds presently held in trust.
(a) to appoint Mr E as the agent for the husband and wife;
(b) the task of appointing Mr E had to be undertaken "forthwith", importing an obligation of immediacy; and
(c) in appointing Mr E, the husband was required to "do all acts and execute all documents" to achieve the appointment of Mr E.
The party named in Item 1 Error! Reference Source not found of the schedule (as hereinafter defined) (the Principal); and...
(a) Mr E presents a draft lease to the husband naming M Company as tenant and the terms of it are no less favourable as are the terms under consideration immediately prior to the husband taking possession of the B Street property in January 2026; and
(b) the husband fails, refuses or neglects to execute such lease within 72 hours of being presented with it for the husband's execution,
then I will entertain a renewal of the wife's application for her to be appointed as statutory trustee to execute that instrument of lease as owner. Any such application must be made on proper material, however.
(a) permitting him to take up possession of the B Street property and as a director of H Pty Ltd to have permission to enter into a lease of the B Street property paying rent into a CBA account; and
(b) permitting funds presently held in trust by AFL Withnalls to be used to pay seven amounts due to parties set out in paragraph 3 of the response. Each calls for a separate consideration.
(a) the sum of $188,000 mentioned in item 3(c) relates to the B Street property;
(b) the amount of $5,664.47 mentioned in item 3(e) as being due to City D Council relates to rates due to the B Street property;
(c) the sum of $1,541.13 mentioned in item 3(f) relates to an account for water and sewerage rates due for the B Street property; and
(d) the sum of $1,241.59 due to P Company mentioned in item 3(g) relates to electricity supplied to the B Street property.
I certify that the preceding eighty-seven (87) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Wilson.
[1] That was obviously an error because a trust is not a legal entity so the shareholders in G Pty Ltd was not the trust. She earlier deposed to K Pty Ltd being the trustee of the Melek Family Trust.
[2] Redmond & Redmond [2014] FamCAFC 155 and SS & AH [2010] FamCAFC 13.
[3] Transcript 13 February 2026 page 12 line 45.
[4] Transcript 13 February 2026 page 22 line 10.
[5] Transcript 13 February 2026 page 22 line 42.
[6] Transcript 13 February 2026 page 23 lines 1 to 17.
[7] Transcript 13 February 2026 page 23 lines 19 to 34.
[8] Transcript 13 February 2026 page 25 line 90.
[9] (1881) 6 App Cas 251, 263.
McKay
Dick
(1979) 144 CLR 596
(2020) 272 CLR 177