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Tanzania Judgment

TANZLII

CITY COLLEGE SUMMARY JGT

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Source document

01

Holding and result

The defendant's failure to apply for leave to defend the summary suit results in the allegations being deemed admitted, entitling the plaintiffs to judgment for the claimed sums and interest.

Court disposition

Judgment for the plaintiffs

Orders

  • Defendant to pay plaintiffs TZS 223,116,600/= as unremitted statutory member contributions and accumulated penalties.
  • Defendant to pay interest on the decretal sum at the court rate of 7% per annum from the date of judgment to satisfaction.
  • No order as to costs.

02

Material facts

Parties

The Attorney General

1st Plaintiff Counsel: Ms. Doris Nyakilang’ane

Board of Trustees of the National Social Security Fund

2nd Plaintiff Counsel: Ms. Doris Nyakilang’ane

City College of Health and Allied Sciences Limited

Defendant

Amounts and remedies

  • Principal Unremitted Contributions: TZS 191,560,000
  • Accumulated Penalties: TZS 31,556,600
  • Total Outstanding Amount: TZS 223,116,600
  • Interest Rate (post Judgment): percent per annum 7

03

Procedural history

  1. Posture

    Civil Summary Suit / Summary Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant, as a registered contributing employer, failed to remit statutory contributions and accrued penalties totaling TZS 223,116,600/= despite reminders and statutory obligations under the National Social Security Fund Act.
Respondent
No defence or application for leave to defend was filed by the defendant.

05

Court’s reasoning

  1. 01

    Order XXXV, rule 2(2) of the Civil Procedure Code [Cap. 33 R.E. 2019]

    Where a summary suit is not defended, the allegations in the plaint are deemed admitted.

06

Ratio, limits and disposition

Ratio decidendi

The defendant's failure to apply for leave to defend the summary suit results in the allegations being deemed admitted, entitling the plaintiffs to judgment for the claimed sums and interest.

Court disposition

Judgment for the plaintiffs

  • Defendant to pay plaintiffs TZS 223,116,600/= as unremitted statutory member contributions and accumulated penalties.
  • Defendant to pay interest on the decretal sum at the court rate of 7% per annum from the date of judgment to satisfaction.
  • No order as to costs.

Source and reliance status

TANZLII · 28 March 2025

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Judgment reading view

Judgment text

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Source document

TANZLII

Judgment· 28 March 2025

CITY COLLEGE SUMMARY JGT

IN THE HIGH COURT OF TANZANIA (DAR ES SALAAM SUB-REGISTRY)

AT DAR ES SALAAM CIVIL CASE NO. 20066 OF 2024 THE ATTORNEY GENERAL ………………….……..…..…………… 1ST PLAINTIFF

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

VERSUS

CITY COLLEGE OF HEALTH AND ALLIED SCIENCES LIMITED……………………..…………….… DEFENDANT

SUMMARY JUDGMENT 19th & 28th March, 2025 BWEGOGE, J. The plaintiffs above named commenced civil proceedings against the defendant herein under summary procedure as per Order XXXV of the Civil Procedure Code [Cap. 33 R.E. 2019]. The plaintiffs claim against the defendant a total sum of TZS 223,116,600/=; being outstanding principal members' contributions plus accumulated penalties thereon. The plaintiffs pray for the following reliefs; 1 i. The defendant be ordered to pay the sum of TZS. 191,560,000/= (Tanzanian shillings one hundred ninety-one million five hundred sixty thousand only) being unremitted members' contributions due and payable to the 2nd plaintiff by the defendant. ii. The defendant be ordered to pay the sum TZS.31,556,600.00 (Tanzanian shillings thirty-one million five hundred fifty-six thousand six hundred only) being accumulated penalties. iii. The defendant be ordered to pay statutory penalties on (i) above at the rate of 5% compound interest for each month of delay from the date of default to the date of judgment. iv. Interest on (i) & (ii) at the prescribed court rate of 7% per annum from the date of delivery of judgment to the date of satisfaction. v. Costs of and incidental to the filing of the suit. vi. Any other and further relief as this Court deems fit and just to grant The plaintiffs’ case, as depicted by the pleadings filed in this court, is

as follows: The defendant is a registered contributing employer of the 2nd plaintiff with registration Number 1012260. Pursuant to the National Social Security Fund Act, the defendant is duty-bound to remit monthly statutory contributions for its own and its employees that is 10% of the employee’s gross salary and a top-up of 10% by the employer respectively making 20% of the Employee’s wage. Allegedly, the defendant defaulted to remit the monthly contribution from May, 2020 to May, 2023 to the tune of the outstanding principal amount of TZS 191,560,000/. 2 The default attracted the monthly penalties amount to the tune of TZS 31,556,600/=; making a total outstanding amount claimed by the plaintiff to the defendant to be TZS 223,116,600/. It is further alleged that the defendant was reminded to fulfil her legal obligation to remit the monthly contribution, but the same refrained from heeding the demand. Hence, this suit. In a bid to substantiate the claim herein, the 2nd plaintiff attached to the plaint the inspection report, exit meeting report, penalty notice and demand notice which indicates that the principal amount due is TZS 191,560,000/= and accrued penalties amounting to TZS. 31,556,600/= The defendant was served with the notice of the pending suit. However, no application for leave to defend the suit was preferred by the applicant. Hence, on the date scheduled for the

necessary order, Ms. Doris Nyakilang’ane, learned state attorney, moved this court under Order XXXV, rule 2 of the Civil Procedure Code, to enter a summary judgment and grant the reliefs prayed for in this case. The provision of Order XXXV, rule 2 (2) of the Civil Procedure Code instructs that where the defendant defaults in obtaining leave to appear and defend the suit and, or default appearance, automatically the 3 allegations in the plaint are deemed to be admitted and the plaintiff is entitled to be granted the prayers. Having scrutinized the plaint and annextures above named, I am satisfied that the defendant owes the plaintiff the principal amount to the tune of TZS 191,560,000/= and accrued penalties amounting to TZS 31,556,600/= making the total outstanding amount claimed against the defendant rests to the tune of TZS 223,116,600/. It is the law that where a summary suit is not defended, the allegations contained in the plaint are deemed to be admitted in terms of the provisions of Order XXXV, rule (2)(2) of the Civil Procedure Code. In view of the foregoing, I hereby enter judgment and decree in favour of the plaintiff. It is hereby decreed as follows: 1. The defendant to pay the plaintiffs a total of TZS 223,116,600/=; being unremitted statutory member contributions and accumulated penalties.

2. The defendant shall pay the interest on the decretal sum at the court rate of 7% per annum from the date of delivery of judgment to the date of satisfaction. 4 3. No order to costs. I so order. DATED at DAR ES SALAAM this 28th March, 2025. O. F. BWEGOGE

JUDGE 5

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Authorities

Authorities used by the court

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

Legislation

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National Social Security Fund Act

Legislation

Legislation referenced in the available case record.

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