national bank of commerce ltd vs skyes travel agents limited 2015 tzhc 2209 18 december 2015

national bank of commerce ltd vs skyes travel agents limited 2015 tzhc 2209 18 december 2015

The Trust Deed, though not registered with RITA, is valid and enforceable against the 1st defendant who authored it. Plaintiffs are entitled to benefits under the scheme as former employees, and the 1st defendant is liable to pay. The suit against the 2nd defendant is dismissed as the Trust Deed is not enforceable against it.

Citation
national bank of commerce ltd vs skyes travel agents limited 2015 tzhc 2209 18 december 2015
Parties
Plaintiffs: Nathan Kithaneli Kafanabo, Joseph Michael Haule, Zephania Mlelwa Malima, Thomas Aminiel Usiri, and 102 former employees of Tanzania Portland Cement Company Limited; 1st Defendant: Tanzania Portland Cement Company Limited; 2nd Defendant: National Insurance Corporation Tanzania Limited
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
18 December 2015
Procedural Posture
Civil / Final Judgment
Outcome
judgment for plaintiffs against 1st defendant; suit dismissed against 2nd defendant
Legal Topics
Group Life Assurance, Trust Deed Validity, Employee Benefits, Registration of Trusts
Source Language
English
Employment Law Trust Law Insurance Law Group Life Assurance Trust Deed Validity Employee Benefits Registration of Trusts

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Parties

Nathan Kithaneli Kafanabo, Joseph Michael Haule, Zephania Mlelwa Malima, Thomas Aminiel Usiri, and 102 former employees of Tanzania Portland Cement Company Limited

Plaintiffs

Tanzania Portland Cement Company Limited

1st Defendant

National Insurance Corporation Tanzania Limited

2nd Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether matters covered in the claim form part of contract of employment between the plaintiffs and 1st defendant
  2. 2 Whether there is a legally valid Trust Deed between the plaintiffs and the defendants and if yes whether the plaintiffs can enforce it against the defendants
  3. 3 Whether the 1st defendant was the custodian of the proceeds of the Trust Deed

Ratio Decidendi

The Trust Deed, though not registered with RITA, is valid and enforceable against the 1st defendant who authored it. Plaintiffs are entitled to benefits under the scheme as former employees, and the 1st defendant is liable to pay. The suit against the 2nd defendant is dismissed as the Trust Deed is not enforceable against it.

Court Disposition

judgment for plaintiffs against 1st defendant; suit dismissed against 2nd defendant

Orders

  • 1st defendant to pay plaintiffs benefits as per Trust Deed: top ranking officers entitled to 40% of salary per annum from July 1987 to retirement; low ranking officers entitled to 30% of salary per annum from July 1987 to retirement
  • Interest at court rate of 7% per annum on decretal sum from date of filing to full payment