This was not in a normal Court, but in the Family Court. There is a long list of the Family Court making bizarre decisions, and it should really be abolished and its functions transferred to something more fit for purpose.
This case seems to hinge on proving fault. According to the law, a divorce can only take place when fault is proven, and she seems to have not been able to prove that to the Family Court.
Why would anyone want to stay married to someone who clearly does not want them. Could it possibly be that he does not want to hand any money / assets to his wife if a separation were to be granted?