Q&As

Can an adjudication award in the construction industry in favour of a company in liquidation be enforced?

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Produced in partnership with Carly Schiff of Boyes Turner
Published on LexisPSL on 29/07/2016

The following Restructuring & Insolvency Q&A produced in partnership with Carly Schiff of Boyes Turner provides comprehensive and up to date legal information covering:

  • Can an adjudication award in the construction industry in favour of a company in liquidation be enforced?
  • Procedure
  • Enforcement

Can an adjudication award in the construction industry in favour of a company in liquidation be enforced?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change.

Procedurally, a company in liquidation can bring an application to enforce an adjudication award; however, the courts have been cautious in allowing enforcement of an order by insolvent companies.

The position will turn on the factual situation and whether there are any cross and counterclaims, which may reduce or extinguish the existing adjudication award.

If a claimant in liquidation would be unable to repay sums paid, if the decision was reversed on final determination of the dispute, then the adjudicator's decision will not be enforced due to the operation of rule 4.90 of the Insolvency Rules 1986, SI 1986/1925 (IR 1986).

Procedure

The current procedure to enforce an adjudication award is set out in section 9 of the Technology and Construction Court Guide (TCCG). The procedure for enforcement proceedings seeking a monetary judgment is to issue a claim in the TCC under Part 7, together with a summary judgment application under Part 24.

Enforcement

The reluctance of the court to allow enforcement by an insolvent company is because the adjudication procedure may not be the

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