Cautions against Using Statutory Demands Based on Adjudication Determinations

In Diamond Glass Enterprise Pte Ltd v Zhong Kai Construction Co Pte Ltd [2021] SGCA 61, the Singapore Court of Appeal had the occasion of considering the interaction between the temporary finality of adjudication determinations under the statutory adjudication regime in the Building and Construction Industry Security of Industry Act (Cap 30B, 2006 Rev Ed) and the corporate insolvency regime. The case involved winding-up proceedings against the applicant company on the basis of an unsatisfied statutory demand for payment of the sum awarded under an adjudication determination. The Court granted a stay of winding-up proceedings as the applicant had shown the prima facie existence of justiciable cross-claims.

This Update provides a summary of the decision and highlights the implications for successful claimants in statutory adjudication regarding their options for enforcement of the adjudication determination.