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Tanzania Judgment

TZHC

masu intertrade limited vs abas nuhu mbosa 2023 tzhc 20370 11 august 2023

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The CMA's clarification was not a mere clerical error but involved substantive rights; therefore, parties, especially the applicant, ought to have been heard before the new decision was made. The failure to do so rendered the decision unlawful.

Court disposition

CMA decision of 18/11/2021 quashed and set aside.

Orders

  • CMA to clarify the issue of payable subsistence allowance after hearing the parties.

02

Material facts

Parties

Masu Intertrade Limited

Applicant Counsel: Moses Ambindwile

Abas Nuhu Mbosa

Respondent Counsel: Edmund Mkwata

Amounts and remedies

  • Original CMA Award: TZS 15,685,769
  • Respondent's Execution Claim: TZS 71,665,769
  • CMA Clarified Award (2021): TZS 79,495,769
  • CMA Clarified Subsistence Allowance (2021): TZS 70,335,000

03

Procedural history

  1. Posture

    Labour Revision / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the CMA's new decision substantially affected them and they ought to have been heard before it was passed.
Respondent
The respondent argued that the High Court only directed correction of errors and not a rehearing, so the CMA was right to amend the decision without involving the parties.

05

Court’s reasoning

  1. 01

    General principles of natural justice

    Parties must be heard before a decision affecting their rights is made.

06

Ratio, limits and disposition

Ratio decidendi

The CMA's clarification was not a mere clerical error but involved substantive rights; therefore, parties, especially the applicant, ought to have been heard before the new decision was made. The failure to do so rendered the decision unlawful.

Obiter and limits

  • Evidence regarding payment of repatriation costs and the form of subsistence allowance (daily or monthly) was necessary and could not be decided suo moto by the CMA.

Court disposition

CMA decision of 18/11/2021 quashed and set aside.

  • CMA to clarify the issue of payable subsistence allowance after hearing the parties.

Source and reliance status

TZHC · 11 August 2023

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Judgment reading view

Judgment text

The complete available source text.

Source document

TZHC

Judgment· 11 August 2023

masu intertrade limited vs abas nuhu mbosa 2023 tzhc 20370 11 august 2023

IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA (IRINGA SUB REGISTRY)

AT IRINGA LABOUR REVISION NO. 18 OF 2022 (Original Labour Dispute No. CMA/NJ/AUG/25/2017of the Commission ofMediation and Arbitration for Njombe before Hon. A. Singo, Arbitrator.) MASU INTERTRADE LIMITED ................................. APPLICANT

VERSUS ABAS NUHU MBOSA .................................. RESPONDENT

JUDGMENT ldh July & 11th August, 2023 I.C. MUGETA, J: On 30/10/2017, the Commission for Mediation and Arbitrator (the CMA) - Njombe decreed that the applicant had to pay the respondent Tshs. 15,685,769/= being entitlements for unlawful termination of employment contract. The subsistence allowance award has been the subject of litigation since then. In the said decision, the CMA had calculated it at Tshs. 6,525,000/=. When the respondent sought to execute the decree, he pegged it at Tshs. 71,665,769/=. The executing Deputy Registrar decided that the lawful amount was Tshs. 15,685,769/= as decreed by the CMA. She ordered execution to proceed in respect of that amount. This aggrieved the Page 1 of 4 respondent who filed Labour Application No. 19 of 2020 to challenge the decision of the Deputy Registrar. My brother (Matogolo, J) found that the decision of the CMA had contradictions, therefore, the Deputy Registrar ought to have sought clarification from CMA instead of interpreting it herself. My Lord, ordered reference of the file to the CMA to clarify its decision in respect of the award for subsistence allowance. In compliance with the above said directions of this court, on 18/11/2021 the CMA, without involving the parties, issued another decision with award of a total of Tshs. 79,495,769/= out of which Tshs. 70,335,000/= is subsistence allowance. The applicant was aggrieved

by this second award, hence, this application. The applicant has raised several complaints but I shall address only one complaint which is that the CMA, in issuing the new award, denied the parties the right to be heard. I have so decided because, as submitted by Edmund Mkwata, counsel for the respondent, the other complaints are brought in this application through a back door since they ought to have been argued in Labour Revision No. 3/2018 which was dismissed. Page 2 of 4 Regarding the valid complaint, Mr. Moses Ambindwile, learned counsel for the applicant has argued that since the new decision affects the applicant substantially, she ought to have been heard before it was passed. Edmund Mkwata, learned advocate responded that the High Court did not direct a rehearing but to correct errors in the CMA decision. In his view, the CMA was right to amend the decision without involving the parties. With respect I do not agree with Mr. Mkwata. In my view, the clarification directed by this court was not a mere clerical error but it involved matters of subsistence affecting the rights of the parties. The decree was changed from Tshs. 15,685,769/= to Tshs. 79,495,769/=. The big chunk of this amount is subsistence allowance for want of repatriation which depends on when the respondent is repatriated from the date of termination. Therefore, evidence as to whether the respondent had

been paid repatriation costs or not was important as from 30/10/2017 to 18/11/2021 when the new decision was passed anything could have happened. Further, it was important for the CMA to determine if, in case of unlawful termination of employments, subsistence allowance is paid in form of daily pay or as monthly salary. These are matters which Page 3 of 4 Vat in my view, the CMA could not have decided suo moto. The parties, particularly the applicant who is affected most by the decision, ought to have been heard. For the foregoing, I hold that the decision of the CMA of 18/11/2021 is unlawful. I quash it and set aside all orders emanating there from. I direct the CMA to clarify the issue of the payable subsistence allowance after hearing the parties. I.C. MUGETA

JUDGE 11/8/2023 Court: Judgment delivered in chambers in the presence of Moses Ambindwile, learned advocate for the applicant who is absent and in the absence of the respondent. Sgd. I.C. MUGETA

JUDGE 11/8/2023 Page 4 of 4

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