The JV had tried to argue the dispute should go to arbitration.

Disputes arose over cost overruns, delays to works and quality issues on the design and build job to upgrade the Horsley water treatment works in Northumberland.

Northumbrian Water terminated the £37m contract, which was awarded in 2016, back in May 2021 and later claimed £51m for contractor default.

The joint venture, at the time between Interserve Construction and Doosan Enpure, disputed the sum and claimed £33m.

Last May an adjudicator ruled on the dispute finding that the termination of the contract by the water company was valid and ordered that the JV should pay £22.4m.

The contractors then challenged the ruling in June and applied for arbitration by challenging the validity of the decision.

But in the High Court, Mrs Justice O’Farrell ruled that the adjudication decision was valid and enforceable and there was no justification for a stay of proceedings for arbitration.

A spokesperson at Tilbury Douglas said: “This court ruling refers to a legacy joint venture project, therefore, Tilbury Douglas only has an obligation for a share of the settlement sum, which has already been accounted for in its trading position.

“We will make no further comment on commercial matters.”