Q&As

Can a company in administration adjudicate against a company in liquidation under a construction contract?

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Published on LexisPSL on 03/10/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can a company in administration adjudicate against a company in liquidation under a construction contract?
  • Powers of administrator
  • Powers of liquidator
  • Enforceability of a successful adjudication decision

There are several key areas to consider—the ability of a company in administration to bring a claim, whether a claim can be brought against a company in liquidation, and lastly, the impact of that claim being brought by way of adjudication (which is provisionally binding, unless and until the dispute is finally resolved by arbitration or litigation).

Powers of administrator

The administrator's powers are the same no matter how they are appointed. They are very wide as an administrator may do anything necessary or expedient for the management of the affairs, business and property of the company. Therefore, while there are specific powers set out under the Insolvency Act 1986 (IA 1986), these are not exhaustive considering the administrator's overall duty.

As well as the powers granted under IA 1986, Sch B1, the administrator can exercise all powers set out in IA 1986, Sch 1 which are given to administrators to enable them to achieve the purpose of the administration. These are very wide and include doing anything necessary to carry on the business of the company and to realise company property, which can include borrowing money and undertaking litigation. See the schedule for a

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