SHARMA & SHARMA

In the matter of SHARMA & SHARMA, Hannam J of the Family Court of Australia considered an application by the wife for the appointment of receivers to enforce previous orders concerning a superannuation split from a self-managed fund. The husband, who was the respondent, had not participated in the proceedings, despite being served at his last known residential address, company address, and by substituted service on the accountants. The core of the dispute was the husband's non-compliance with prior orders relating to the wife's entitlement to a portion of his superannuation.

The court was required to determine whether to appoint joint and several receivers to enforce the existing superannuation split orders and to give effect to any costs orders. Additionally, the court needed to consider the wife's entitlement to interest on the outstanding superannuation amount and the terms under which the receivers would operate, including their powers, remuneration, and reporting obligations. The court also had to address the husband's conduct in necessitating these enforcement proceedings and the appropriate basis for awarding costs.

Hannam J applied Rule 20.47 of the Family Law Rules 2004 (Cth) to appoint Mr B, Mr C, and Mr D of E Chartered Accountants as joint and several receivers of the property and income of the Sharma Pty Ltd Superannuation Fund, Sharma Pty Ltd, and the husband and wife in their capacity as trustees. The receivers were empowered to take actions that the husband and trustees would ordinarily be able to take, with their powers operating to the exclusion of the trustees' powers in relation to the enforcement of the superannuation orders. The court also ordered that the wife be entitled to interest on the outstanding amount pursuant to Regulation 45D of the Family Law (Superannuation) Regulations 2001 (Cth). The husband was ordered to pay the wife's costs of the application on an indemnity basis, as well as the receivers' costs and expenses to the extent the fund was insufficient. Further orders included the husband's co-operation with the receivers, the receivers' monthly reporting, and restraints on the trustees dealing with funds in the superannuation fund, as well as restraints on the husband dealing with specific properties.