Canary had sent Timtec a cheque as an interim payment but stopped the cheque when they discovered that Timtec had gone into administration. Timtec subsequently issued proceedings against Canary for the stopped cheque to be paid. Canary applied for leave to commence adjudication proceedings against Timtec pursuant to s.11(3) Insolvency Act 1984 (no longer in force) but the application was refused by the Registrar. Canary appealed the Registrar’s decision. The Judge refused to reverse the Registrar’s decision and held that, on the facts, as there was no ongoing contract between Canary and Timtec, a large part of the justification for the adoption of Adjudication had gone. In the Judge's view, as litigation between the parties was already on foot, the matters disputed by Canary could be resolved by way of defence and counterclaim in those proceedings.