Winding Up Petitions And Construction Contracts

The recent case of Breyer Group plc v RBK Engineering Limited considered the use of winding up petitions in construction contracts.

An application was made by Breyer to stop RBK from continuing with a petition to wind up the company. The court decided that winding up petitions can operate as a form of commercial oppression and may not be appropriate, especially when adjudication or ordinary proceedings would be a more appropriate forum for the dispute.

The background

In 2015, RBK was engaged by Breyer as a subcontractor to provide labour, plant and materials in relation to kitchen and bathroom refurbishment works. 

RBK was employed under an initial contract which contained confusing and contradictory payment terms. An appendix provided timings for applications and notices which the court commented were difficult to reconcile with the payment provisions contained in the body of the agreement.