Absolute Rentals Limited v Gencor Enterprises Limited
Gencor carried out various building works for Gencor pursuant to a 1980 JCT Minor Works contract. The contract contained an arbitration clause but no adjudication provisions. A dispute arose between the parties which Absolute referred to adjudication. The Adjudicator found in favour of Absolute who sought to enforce the Adjudicator’s decision. Gencor cross applied for enforcement proceedings to be stayed under the Arbitration Act 1996.
The Judge enforced the decision. The Adjudicator’s decision was entirely without prejudice to the final merits and determination by the Arbitrator. Although Gencor had served statements late questioning Absolute’s financial viability, the Judge also declined to order a stay because of Absolute’s financial position as to do so would frustrate the Scheme.