Is it legal to fire a contractor supplying resources

[pepeleew]

Hello, I have a contracting employee (Say Mr X) working with us through an agency (say ABC). His company is also involved in supplying resources to us (not directly but through one of our partner, say XYZ).
We are suspecting that Mr X is involved in malpractice and have connections with one of our permanent employee (say Mr Y). As we have discovered that the Mr X company's is running from the Mr Y's residential address.

Facts:
1. Mr X company's address and Mr Y residential address are same.
2. Mr Y is living in a shared accommodation.
3. Unfortunately we can't prove any financial benefit for Mr Y.

What we wanted to do is to terminate all the contract of company ABC directly or indirectly with our company.

Do we get involved in any legal matter if we terminate all of his contracts? Thanks in advance for your advice.

[Jmwsolicitors]

I'd say it rather depends upon the terms of the contracts you have.