How insolvency affects the jurisdiction of an adjudicator – Building

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An important appeal court ruling on insolvency matters was made last month in a joint decision on two cases: Bresco Electrical Services Ltd (in liquidation) vs Michael J Lonsdale (Electrical) Ltd and Cannon Corporate Ltd and Primus Build Ltd [2019] EWCA Civ 27.

In the Bresco appeal, Bresco was in insolvent liquidation where the Insolvency Rules mutual debit, credit and set-off provisions automatically applied, the practical effect of which is that an account must be taken by the liquidator of what is due to or from the company and a creditor to produce a single figure for payment. Lonsdale argued that the effect of Bresco being in liquidation meant these provisions applied such that only the Bresco liquidator had the jurisdiction to d…

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