Mr Parke engaged the Fenton Gretton to carry out building works. Fenton Gretton successfully referred a dispute to adjudication in relation to their fees. Mr Parke did not pay the Adjudicator’s decision and Fenton Gretton issued a Statutory Demand for the amount of the Adjudicator’s decision. Mr Parke applied to set the demand aside.
The Judge held that the Adjudicator’s decision created a debt that could form the basis of a Statutory Demand and fell to be treated in the same way as a judgment or order in accordance with paragraph 12.3 of the Insolvency Proceedings Practice Directions. However, depending on the facts of the case, as a matter of principle, if the debtor has a Counterclaim, set-off or cross claim where the debt is the adjudication decision, this might be sufficient for the Court to set aside the Statutory Demand. On this principle and based on the facts, the Judge set aside the Statutory Demand.