summary Judg

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

AT DAR ES SALAAM CIVIL CASE NO. 7952 OF 2024 CASE REF. NO. 202404151000007952 THE ATTORNEY GENERAL ---------------------------------------1ST PLAINTIFF

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

VERSUS OLWETHU COMPANY LTD THE GREAT LAKES---------------------DEFENDANT SUMMARY JUDGMENT: 12th & 27 th Feb. 2025 KIREKIANO, J : The plaintiffs instituted a civil suit under summary procedure against the defendant, claiming, among other things, for payment of Tshs. 50,70,481.60/= (Tanzanian Shillings Fifty Million, Seven Hundred Six Thousand Four Hundred Eighty-one and sixty cents only), being unremitted members’ contributions plus accumulated penalties. The second plaintiff is a government corporation and a social Security Fund/scheme established under the National Social Security Fund Act [Cap 50 R.E 2018]. The defendant is a company incorporated under the 1 laws of Tanzania and registered as a contributing member employer of the 2nd plaintiff with Registration No. 1009589. It is contended that, under the laws establishing the 2nd plaintiff, the defendant is obliged to remit members’ contributions each month, 10% of the employee's gross salary and 10% by the employer, making a total of 20%. The defendant thus defaulted on the remittance of members’ principal contributions for the periods between January 2018 and September 2023 and, as a result, attracted the penalty amounting to TZS 6,807,129.60/=. It is further revealed that the 1st plaintiff reminded the defendant through a demand letter dated 05/12/2022 to perform the said statutory obligation on remittance of the member’s

contribution to no avail. The plaintiffs have filed a summary suit against the defendants, praying for the following reliefs. i) That, the defendant be ordered to pay the sum of Tshs. 50,70,481.60/= (Tanzanian Shillings Fifty Million, Seven Hundred Six Thousand Four Hundred Eighty-one and sixty cents only), being un-remitted members’ statutory contributions and accumulated penalties thereon due and payable to the first plaintiff by the defendant. 2 ii) The defendant pays interest on the decree sum from January 2018, when the sum accrued to the date of judgment, at an overall lending interest rate of 15% per annum, as published by the Bank of Tanzania monthly Economic Review, January 2018 publications. iii) Interest on the decretal sum at the prescribed court rate of 7% per annum from the date of delivery of Judgment until the same shall be fully satisfied. iv) Cost of and incidental to the filing of the suit; and v) Any other and further relief this Honourable Court may deem fit and to grant. Upon service, the defendant defaulted in applying for leave to defend the suit, and the counsel for the plaintiff prayed for summary judgment. I have examined the plaint; the total outstanding contributions plus accumulated penalties are Tshs. 50,70,481.60/= (Tanzanian Shillings Fifty Million, Seven Hundred Six Thousand Four Hundred Eighty-one and sixty cents only), which is the default

remittance members’ principal contribution plus the accumulated penalties. As provided under Order XXXV Rule 2(2) of the Civil Procedure Code, where a summary suit is not defended, the allegations in the plaint are deemed to be admitted. This is the position of the law elucidated in numerous decisions, including CRDB Bank Limited vs John Kagimbo Lwambagaza 3 [2002] TLR117. But also The Board of Trustees of the National Social Security Fund & Another vs Rutta Stewart Mukulasi T/A Mujumuzi Secondary School (Civil Case No. 1332 of 2025) [2025] TZHC 304 (18 February 2025), in the later case, Mwakapeje J, stated that; This principle is designed to promote judicial efficiency by preventing defendants from raising frivolous defences that could unnecessarily delay the resolution of cases involving liquidated demands, promissory notes, and other clear monetary obligations as stipulated under Order XXXV Rule 1. With that remark and based on the foregoing, I enter summary judgment in favour of the plaintiff against the defendant as follows.

1. The defendant is to pay the 1st plaintiff Tshs. 50,70,481.60/= (Tanzanian Shillings Fifty Million, Seven Hundred Six Thousand Four Hundred Eighty-one and sixty cents only), the default remittance members’ principal contribution plus the accumulated penalties.

2. Interest on the decretal sum of 15% from when the sum accrued to the date of judgment.

3. Interest on the decretal sum at the court rate of 7% per annum from this date of Judgment until final payment.

4. Costs of this suit. 4 Dated at DAR ES SALAAM this 27th day of February 2025. A. J. KIREKIANO.

JUDGE 5