In the case of Bresco Electrical Services Ltd (In Liquidation) v Michael J Lonsdale (Electrical) Ltd [2020]

UKSC 25, the claimant, Bresco Electrical Services Ltd, argued that the adjudication provisions of the
Construction Act 1996 do not prevent a company in liquidation from pursuing an adjudication against a
respondent party.

liquidation to pursue an adjudication, as long as the company had not been fully dissolved.

The Court of Appeal had previously ruled in favour of Michael J Lonsdale, holding that Bresco could not
pursue an adjudication while in liquidation. However, the Supreme Court overturned the Court of Appeal's
decision and ruled in favour of Bresco. The Construction Act 1996 provides a statutory framework for
resolving disputes in the construction industry. The Act includes provisions for adjudication, which allows
parties to a construction contract to refer disputes to an independent adjudicator for a quick and cost-
effective decision. The Act does not explicitly address the question of whether a company in liquidation can
pursue an adjudication.

The Insolvency Act 1986 governs the process of liquidation, and provides that once a company has entered
into liquidation, it cannot commence or continue any legal proceedings without the permission of the court.

The Supreme Court held that the adjudication provisions of the Construction Act 1996 do not prevent a
company in liquidation from pursuing an adjudication, as long as the adjudicator has jurisdiction to hear the
dispute. The court found that there was no conflict between the Insolvency Act 1986 and the Construction
Act 1996, and that the Construction Act 1996 provides a valuable means of resolving disputes in the
construction industry.

Therefore, the claimant's legal argument was that a company in liquidation is not prevented from pursuing
an adjudication against a respondent party under the Construction Act 1996.