Silostrat (Pty) Ltd & Others v Pieter Hendrik Strydom N.O. & Others

Frederick Barend Christoffel Kirsten, a farmer, obtained extensive credit from several creditors including Standard Bank, Suidwes Landbou, and Technichem. As security, he executed multiple deeds of cession over crop income in favour of these creditors at different times. In 2014–2015 he also sold anticipated maize crops forward to Silostrat, but failed to deliver. Kirsten’s estate was sequestrated in 2016, triggering disputes among the cessionaries over entitlement to the proceeds of the 2015 maize crop. Standard Bank relied on a 2011 cession, Suidwes on annual crop cessions, and Technichem on a cession dated 5 October 2014. Silostrat claimed contractual damages and delictual relief. The High Court dismissed Standard Bank’s and Silostrat’s claims and upheld Technichem’s cession. Appeals followed to the Supreme Court of Appeal.

All appeals by Standard Bank, Silostrat, and Suidwes were dismissed with costs, including costs of two counsel where employed.

The case clarifies South African law on the interpretation and ranking of competing cessions, confirms strict limits on rectification after concursus creditorum, and reinforces insolvency principles that creditors who have proved claims must pursue recovery through estate administration rather than separate proceedings.