South Africa Case Law

Millman NO v Twiggs and Another (610/93)

Millman NO v Twiggs and Another (610/93) [1995] ZASCA 62; 1995 (3) SA 674 (AD); [1995] 2 All SA 611 (A) (26 May 1995)

Court

Supreme Court of Appeal

Case number

610/93

Judges

Hefer, Vivier, Steyn, F H Grosskopf, Schutz

The Supreme Court of Appeal held that the cession in securitatem debiti created a pledge over the right to receive payment from Tuna Marine, effective for both debts secured—one owed by the cedent and one by an outsider. The court found no logical or legal basis to distinguish between the two clauses of the cession, as the law permits property to be pledged to secure another's obligation. The Insolvency Act does not codify all aspects of insolvency law, and where it is silent, the common law applies. The common law entitles the pledgee to secured creditor status in respect of both debts. The…

Source excerpt

• Cession In Securitatem Debiti
• Pledge Of Rights
• Insolvency Liquidation
• Secured Creditor Status