HT-2024-000423 - [2025] EWHC 942 (TCC)

Prior to the adjudication, the Defendant issued a statutory demand against the Claimant, (in reliance on the outstanding balance of the invoices) and intimated that he would seek a winding up petition. On 12 July 2024, the Claimant obtained an Order restraining the Defendant from presenting a winding up petition. That Order required the Defendant to pay the Claimant’s costs, in the amount of £18,000. The Defendant failed to pay the costs.

The Defendant then referred the dispute to adjudication on 30 July 2024 and a decision was made on 11 September 2024.

The Claimant having failed to comply with that decision, on 20 September 2024 the Defendant commenced proceedings to enforce the decision, which culminated in a hearing in the TCC on 9 December 2024, heard by District Judge Baldwin.

The Claimant’s position at that hearing was that execution should be stayed on account of the Defendant’s impecuniosity and/or that it should be entitled to set-off the unsatisfied costs order made in the Claimant’s favour.

The outcome of the hearing was that the Court enforced the adjudicator’s decision, but ordered that the Claimant was entitled to set-off the £18,000 of costs due to it, with only the balance payable. The balance payable was £137,472.12 In addition, the Claimant was ordered to pay the Defendant’s costs, in the amount of £22,971.20.

On 16 December 2024, the Claimant issued the present Part 8 claim.

The Claimant having failed to pay the sums pursuant to the Order of 9 December 2024, the Defendant subsequently applied for an obtained an interim third party debt order in respect of the Claimant’s bank, which was made on 21 February 2025. The return date for a hearing on the final third party debt order is 22 April 2025.