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Tanzania Judgment

TANZLII

51

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The defendant's failure to obtain leave to defend constitutes admission of the plaintiff's claims, justifying summary judgment and decree for the outstanding statutory contributions and penalties.

Court disposition

Summary judgment entered for the plaintiff

Orders

  • Defendant to pay TZS 17,116,410.00 comprising unremitted contributions and penalties for July 2019 to July 2022
  • Interest at 7% per annum from date of judgment to full payment
  • Defendant to pay costs of the suit

02

Material facts

Parties

The Attorney General

1st Plaintiff Counsel: Ms. Austrida Semayoga

The Board of Trustees of the National Social Security Fund

2nd Plaintiff Counsel: Ms. Austrida Semayoga

Bomba Radio FM

Defendant

Amounts and remedies

  • Outstanding Statutory Contributions and Penalties: TZS 17,116,410
  • Interest Rate: 7

03

Procedural history

  1. Posture

    Civil Case / Summary Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant, as an employer and registered member, failed to remit statutory monthly social insurance contributions for employees, resulting in outstanding principal and penalties.
Respondent
The defendant did not seek leave to defend and did not present any arguments.

05

Court’s reasoning

  1. 01

    Order XXXV of the Civil Procedure Code, Cap. 33, R.E 2019

    Failure to obtain leave to defend in a summary suit is tantamount to admission of claims and entitles the plaintiff to a decree.

  2. 02

    Section 74A(2) of the National Social Security Fund Act, Cap. 50, R.E 2018

    Employers are statutorily obligated to remit social insurance contributions for employees.

06

Ratio, limits and disposition

Ratio decidendi

The defendant's failure to obtain leave to defend constitutes admission of the plaintiff's claims, justifying summary judgment and decree for the outstanding statutory contributions and penalties.

Court disposition

Summary judgment entered for the plaintiff

  • Defendant to pay TZS 17,116,410.00 comprising unremitted contributions and penalties for July 2019 to July 2022
  • Interest at 7% per annum from date of judgment to full payment
  • Defendant to pay costs of the suit

Source and reliance status

TANZLII · 22 August 2024

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Judgment reading view

Judgment text

The complete available source text.

Source document

TANZLII

Judgment· 22 August 2024

51

IN THE UNITED REPUBLIC OF TANZANIA

JUDICIARY

THE HIGH COURT OF TANZANIA MBEYA SUB - REGISTRY

AT MBEYA CIVIL CASE NO. 4465 OF 2024 THE ATTORNEY GENERAL….………………………………….………1ST PLAINTIFF

THE BOARD OF THE TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND……………………2ND PLAINTIFF

VERSUS BOMBA RADIO FM……………………………………………….............DEFENDANT

SUMMARY JUDGEMENT Date: 14 August 2024 & 22 August 2024 SINDA, J.: The second plaintiff herein, the Board of Trustees of the National Social Security Fund (the NSSF), through the first plaintiff the Attorney General instituted this summary suit, against the defendant, under order XXXV of the Civil Procedure Code, Cap. 33, R.E 2019 (the CPC) read together with section 74A (2) of the National Social Security Fund Act, Cap. 50, R.E 2018 claiming TZS 11,784,920.00/= being outstanding principal member’s contribution and accumulated penalties of TZS 5,331,490.00/= for the period between July 2019 to July 2022. 1 The second plaintiff alleged that the defendant being an employer and a registered member with registration No. 994214 is duty bound to remit to the NSSF statutory monthly social insurance contributions for her employees. However, despite such obligation, the defendant has not remitted the mandatory statutory contribution in respect of her employees. Consequently, the principal sum, comprising of 20% of each employee’s monthly salary, has accumulated to TZS 11,784,0920.00/= and the accrued penalties has scaled to TZS 5,331,490.00/= making the total outstanding sum of TZS 17,116,410.00/= which is now claimed in this suit. Upon a notice for summary suit been issued and served on the defendant she did not seek for the leave which would have enabled her to appear and defend

herself. The second plaintiff, represented by Ms. Austrida Semayoga, learned State Attorney invited this court to enter a summary judgment and decree in favour of the second plaintiff in terms of Order XXXV of the CPC. It is settled that where a summary suit is filed the defendant can neither enter appearance or defend himself unless he obtains a leave of court. Failure to obtain leave is tantamount to an admission of the claims and entitles the plaintiff to a decree as per Order XXXV of the CPC. Under the circumstances and guided by the principle behind summary procedure, I am of the settled view that this is a fit case for summary judgment to issue. Accordingly, a summary judgment is entered in favour of the second plaintiff that the defendant has offended the mandatory 2 statutory duty to remit her employee’s social insurance contributions to the second plaintiff. The defendant is consequently ordered to pay: 1. The outstanding amount of TZS 17,116,410.00/= comprising of unremitted members’ contributions due to the plaintiff as statutory social insurance contribution for the period between July 2019 to July 2022 plus accumulated penalties; 2. An interest on the decretal amount at the rate of 7% per annum charged from the date of judgment to the date of full payment; and 3. Costs of this suit. DATED at MBEYA on this 22 day of August 2024. A. A. SINDA

JUDGE 3

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Civil Procedure Code, Cap. 33, R.E 2019

Legislation

Legislation referenced in the available case record.

National Social Security Fund Act, Cap. 50, R.E 2018

Legislation

Legislation referenced in the available case record.

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