Adjudication—insolvency proceedings
Adjudication—insolvency proceedings

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Adjudication—insolvency proceedings
  • Use of insolvency proceedings in adjudication
  • Winding up/bankruptcy
  • Set-off and cross claims
  • Applications to continue in face of a statutory moratorium

Produced in association with 4 Pump Court

Use of insolvency proceedings in adjudication

Insolvency proceedings will rarely be the most efficient or appropriate means of enforcing the decision of an adjudicator. The Technology and Construction Court’s (TCC’s) enforcement procedures are specifically tailored for quick adjudication enforcement, and the test to be applied varies from that which is usually applied in insolvency proceedings.

In Harlow & Milner v Linda Teasdale, the TCC noted (when considering costs incurred in bankruptcy proceedings which had since been withdrawn) that:

  1. it was not easy to understand why the bankruptcy proceedings had been issued. The appropriate way of enforcing the adjudicator's decision was to issue enforcement proceedings in the TCC, which had a procedure expressly tailored by the TCC to allow the prompt and efficient enforcement of adjudicators' decisions

  2. save in exceptional circumstances, the most efficient way of enforcing the adjudicator's decision was by enforcement proceedings in the TCC

  3. other ways of enforcing such decisions (such as, for instance, bankruptcy proceedings) were something of a blunt instrument and raised potential issues which had little or nothing to do with the decision at the heart of any enforcement application. Ordinarily, therefore, the issue of a statutory demand would not be the appropriate means of enforcing an adjudicator's decision

For more information on the TCC’s enforcement procedures, see Practice Note: