Can A Company In Liquidation Take Part In An Adjudication?

In Meadowside Building Developments Ltd (in liquidation) -v- 12-18 Hill Street Management Company Ltd [2019] EWHC 2651 (TCC), the Court found that in certain circumstances, it is possible for companies in liquidation to legitimately engage in adjudication proceedings.

Background

Historically, there has been some doubt as to whether or not an Adjudicator has jurisdiction to make a decision if the referring party was insolvent. This was due to the fundamental incompatibility between the adjudication process and the insolvency regime.

The position changed in the recent Court of Appeal case Bresco Electrical Services Ltd (In Liquidation) v Michael J Lonsdale (Electrical) Ltd; Cannon Corporate Ltd v Primus Build Ltd [2019] EWCA Civ 27, where it was found that an Adjudicator did have jurisdiction to make a decision, despite Bresco being in liquidation. However, because Bresco faced a separate...