Company voluntary arrangements and adjudication

In Westshield Ltd v Whitehouse [2013] EWHC 3576 (TCC), [2013] All ER (D) 292 (Nov) Mr Justice Akenhead considered the impact which a Company Voluntary Arrangement (‘CVA’) may have on an otherwise enforceable decision of an adjudicator. He held that, as a matter of jurisdiction, the existence of a CVA does not act as some sort of bar on adjudication which prevented a company from pursuing adjudication in respect of a pre-CVA debt. But the existence of a CVA was a relevant matter to be considered when deciding whether or not summarily to enforce the decision of an adjudicator or to grant a stay of execution. On the facts of the case it was held that, as a result of the CVA, it was not appropriate summarily to enforce the decision of the adjudicator. Instead it was for the Supervisors under the CVA to take an account of the mutual dealings between the parties and the proceedings were stayed until further order pending the completion of that accounting exercise.