Citation: Adj LR 03/14
Nature of case: The case concerned an application to set aside a statutory demand made by the respondent pursuant to the decision of an adjudicator that determined that the applicant should pay the respondent the sum of £26,495.54. The issue for the court to determine was whether an adjudicator’s decision creates a debt that can form the basis of a statutory demand and if so, the nature of the debt. The court treated the adjudicator’s decision as a debt capable of forming the basis of a statutory demand, despite the fact that the debtor maintained a challenge to the adjudicator’s jurisdiction. The court held that unless and until an adjudicator’s decision was challenged successfully in court, the decision remained binding. It follows that whilst an adjudicator’s decision will usually be enforced through the TCC by making an application for summary judgment, in apposite circumstances, an adjudicator’s decision may be enforced by serving a statutory demand on the debtor and then issuing insolvency proceedings at court against the debtor company.