Eden Homes (Scotland) 2 LTD against Southside Veterinary Clinic LTD (Sheriff Court Civil) [2026] SCPAI 23 (22 October 2025)

Eden Homes (Scotland) 2 LTD against Southside Veterinary Clinic LTD (Sheriff Court Civil) [2026] SCPAI 23 (22 October 2025)

Appointment of provisional liquidator does not constitute judicial assignation; assets remain with company unless vested by court order; intimation of assignation prior to winding up order perfected real right in assignee; pursuer has title to sue. Adjudicator exceeded jurisdiction in awarding interest as contract contained no provision and parties did not agree to include interest; award of interest is unenforceable and severable from principal sum.

Citation
[2026] SCPAI 23
Parties
Pursuer: Eden Homes (Scotland) 2 Ltd; Defender: Southside Veterinary Clinic Ltd
Jurisdiction
Scotland
Judgment Date
22 October 2025
Procedural Posture
Sheriff Court Civil / Judgment Following Debate on Preliminary Pleas
Outcome
Defender's preliminary pleas repelled; pursuer has title to sue; adjudicator's award of principal sum enforceable; award of interest unenforceable.
Legal Topics
Assignation of Claims, Liquidation, Adjudicator Jurisdiction, Interest Awards, Waiver of Rights
Commercial Law Insolvency Law Contract Law Assignation of Claims Liquidation Adjudicator Jurisdiction Interest Awards Waiver of Rights

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Parties

Eden Homes (Scotland) 2 Ltd

Pursuer

Southside Veterinary Clinic Ltd

Defender

Procedural Posture

Sheriff Court Civil / Judgment Following Debate on Preliminary Pleas

Legal Issues

  1. 1 Whether appointment of provisional liquidator constitutes judicial assignation defeating prior unintimated assignations
  2. 2 Whether pursuer has title to sue following assignation and liquidation
  3. 3 Whether adjudicator exceeded jurisdiction in awarding interest absent contractual provision

Ratio Decidendi

Appointment of provisional liquidator does not constitute judicial assignation; assets remain with company unless vested by court order; intimation of assignation prior to winding up order perfected real right in assignee; pursuer has title to sue. Adjudicator exceeded jurisdiction in awarding interest as contract contained no provision and parties did not agree to include interest; award of interest is unenforceable and severable from principal sum.

Court Disposition

Defender's preliminary pleas repelled; pursuer has title to sue; adjudicator's award of principal sum enforceable; award of interest unenforceable.

Orders

  • Assign procedural hearing for parties to address disposal and expenses; hearing set for 12 November 2025 at 9.30am via Webex.
  • Pursuer's motion for immediate extract to be heard.