Facts

Iverson Road Ltd (‘IR’) appointed South Coast Construction Ltd (‘SCC’) as a contractor for the construction of apartments and houses on Iverson Road, London. The works were beset by delays and SCC blamed the delays on failures on the part of IR to provide the necessary design information. When SCC suspended work on site, IR threatened a claim for liquidated damages in the sum of £844,330.60 from SCC and SCC issued a final account in the sum of £996,418.01. The dispute was referred to adjudication and a decision was given that IR should pay the sum of £861,235.00 to SCC. When IR did not pay, SCC applied for summary judgment. Without informing SCC or the court, IR gave notice of an intention to appoint administrators. The giving of notice gave rise to an interim moratorium under the Insolvency Act 1986, Sch B1, para 44. SCC, therefore, applied for permission to bring the summary judgment application under para 43 of Sch B1 to the Act. The interim moratorium expired on the date of the hearing of both applications.

Held

As the interim moratorium had expired by the time the applications were heard, Coulson J concluded that the application for permission to enforce the adjudicator's decision was no longer necessary. However, as the matter had been subject of lengthy argument and because it had a bearing on costs, His Lordship indicated that he would have taken on the application. He indicated that he would have granted the application, which he considered would cause no prejudice to any other creditors and would not undermine the purpose of the interim moratorium. Coulson J concluded that permission would more often be given for proceedings to enforce an adjudicator’s award that for other money claims because those enforcement proceedings presupposed a breach of contract or statute on the Defendant’s part already. His Lordship entered judgment in favour of the Claimant in the sums awarded by the adjudicator.