Siltek Holdings (Pty) Ltd (in liquidation) t/a Workgroup v Business Connexion Solutions (Pty) Ltd

Siltek Holdings (Pty) Ltd sold and delivered goods to Business Connexion Solutions (Pty) Ltd between August and October 2001 for R436 430.97, payable within 30 days of delivery. Before the 30‑day payment period expired, Siltek was placed in liquidation on 16 October 2001. Separately, Siltek owed Business Connexion commission of R594 032.34 for introducing Telkom as a customer; this commission debt became due and payable before liquidation. Business Connexion did not claim payment or set‑off prior to liquidation, but raised set‑off as a defence only when sued by Siltek’s liquidator for the purchase price.

The appeal was upheld with costs. The order of the Pretoria High Court was set aside and replaced with an order directing the defendant to pay R436 430.97 with interest at 15.5% from date of default, together with costs of the action.

The case authoritatively restates the requirements for set‑off in South African law, particularly in the context of insolvency. It confirms that once liquidation intervenes and the concursus creditorum is established, set‑off is not permitted unless mutual debts were liquidated and payable before liquidation.