Cases - Enterprise Managed Services Ltd v McFadden Utilities Ltd
Record details
- Name
- Enterprise Managed Services Ltd v McFadden Utilities Ltd
- Date
- [2009]
- Citation
- EWHC 3222 (TCC)
- Legislation
- Keywords
- Adjudication - insolvency rules require an accound of credits and off-sets to be made once liquidator is appointed - prevents liquidator from proceeding with adjudication - allow sufficient time for crystalisation of dispute
- Summary
-
Once a liquidator is appointed to a company the Insolvency Rules require an account of all mutual credits and set-offs be made. That prevents the liquidator from proceeding with any single dispute or any single contract by way of adjudication.
On a separate point, while the tendency is now to interpret the existence of a dispute widely in this case McFadden Utilities were assignees of the debt. However they did not notify Enterprise that they were assignees until the date of the notice of adjudication. The judge held that that was insufficient time to allow the crystallisation of a dispute between Enterprise and McFadden Utilities as assignees.