Civil Case 09 of 2023 Summary Judgment Mrisha J

IN THE HIGH COURT OF TANZANIA (SUMBAWANGA DISTRICT REGISTRY)

AT SUMBAWANGA CIVIL CASE NO. 09 OF 2023

BETWEEN TANGANYIKA DISTRICT COUNCIL 1st plaintiff HON. ATTORNEY GENERAL . 2nd PLAINTIFF AND NAILE LEAF (T) COMPANY LIMITED ENDANT SUM 21st November & 11th February, 20 MRISHA, J. The plaintiffs herein insti er at hand by way of summary proced the Civil Procedure Code, [Cap. 33 R.E. 2022] (the CP he intiffs prayed for judgment and decree against the defenda in the following order: i. The defendant be ordered to remit in full the sum of Tshs. 278,668,211.513/= being the produce cess/levy accrued from 2021- 2023 Produce seasons. 1 ii. The defendant be ordered to pay Tshs. 200,000,000/= as punitive damages for defaulting to remit the statutory produce cess/levy. iii. The defendant be ordered to pay Tshs. 300,000,000/= as general damages to the defendant. iv. Interest at the commercial bank rate of 23% on the amount claimed from the date the damage occurred, to the date of delivery of the judgment. ^k v. Payment of interests at the court rate of 12% on the awarded sums from the date of judgment to the date of full satisfaction. vi. Costs of this suit. ^^k vii. Any other relief(s) this honorable court may deem fit to grant. Upon filing of the plaint, the same was served to the defendant as such, and on 27th October, 2023 defendant acknowledged to receive summons signed by one Alex Kagesya, who introduced himself as the Director of Naile Leaf (T) Company Limited (defendant).

Unfortunately, the defendant neither appeared in court, nor applied for the leave to appear and defend the suit. 2 Thus, on 21st day of November, 2024 Mr. Mkama Msalam, learned State Attorney for the plaintiffs, moved this Court to enter judgment pursuant to Order XXXV, Rule 2 (2) (a) of the CPC. Hence this Judgment. The brief facts of the case, albeit shortly, as gathered from the plaint, are that: The Plaintiffs’ claims against the defendant are the creature of law established under the Local Government (District Authority) Act Cap 287 [R.E. 2002], its significant role is to achieve and fulfill the Local Economic Development for the local community. On the other side, the defendant is a Private Company with limited liability, incorporated under the laws of the United Republic of Tanzania. That on 27th April, 2021 the Defendant entered an agreement with Bulamata Primary Co-operative Society herein referred as “AMCOS”, for production, selling and buying Tobacco within Tanganyika District in Katavi Region. A copy of the said Agreement was attached to the plaint and marked as annexure SG1. That, while the 1st Plaintiff was a third party to the contract, she has the legal right to collect produce cess/levy from Defendant as per the Local Government Finances Act, [Cap 290 R.E. 2019]. 3 Following that agreement, the defendant was required by the law to deduct the produce cess/levy

of 3 % from sales of Tobacco and remit full amount in each Produce season to the 1st Plaintiff. Consequently, the Defendant ought to have remitted Tshs. 278,668,211.513/= in the year 2020/2021 Produce season to the 1st Plaintiff, bu e did not avail the same to the former. The 1st plaintiff made several strides to over accrued from 2021, 2022 to 2023 seasons includi er emand notes to the Defendant, but such efforts did not e copies of Demand Notices dated 14th Octo vember, 2021 and 27th December, 2021 we tta int and marked as Annexures SG3 and SG4 respectively. Owing er De and efforts taken, on 4th January, 2022 the owledged the debt of Tshs. 278,668,211.513/= and pr ised to mit the full amount in the end of 2022 season. However, she did not honor her promise of remitting cess/levy to the 1st Plaintiff. Thus, the plaintiffs opted to institute a summary suit in this Court. In the present case, it has been proved that the suit falls under Order XXXV, Rule 1 (e) of the CPC. As above stated, the defendant neither 4 appeared in court, nor applied for leave to appear and defend the suit. Thus, the plaintiffs’ claims as stated in the plaint are deemed to be admitted. It is a trite law that, the gist of a summary suit is to enable the plaintiff (s) obtain judgment expeditiously where the defend has no substantial defence and, prevents the defendant from <e aying tactics. (See: CRDB Bank

Ltd v John Kagi b 002] T.L.R 117). More so, the provisions of Order of the CPC provide for the remedies to the effe hat w re um suit is not defended by the defendant, the pla re deemed to be admitted. It is settled that su ary suit must be reliefs available under osition was stated in the case of Paul Massa e an v Access Bank Tanzania Limited, Civil Appeal No. 39 14 (u reported) where the Court of Appeal made reference to page 3311 of a, the Code of Civil Procedure in which it was stated that: “The reliefs prayed for in a summary suit must be reliefs available under summary procedure, that is based on a written agreement or a 5 negotiable instrument or as otherwise provided by O. 37 of the Code of Civil Procedure (equivalent to Order XXXV).” Guided by the above provisions of the law, authorities and claims stated in the plaint and its annexures, I am of the settled view that the 1st plaintiff is entitled to receive a sum of Tshs. 278,668,311.513/= being produce cess/levy accrued from 2021-2023 Produce seasons, save for the punitive damages, general damages and interest at commercial rate of 23% from the date the damages accrued to the date of the judgment as prayed under paragraph ii, iii and iv of the plaint. Besides that, I am of the settled view that the 1st Plaintiff is also entitled to court interest rate of 12% per annum under as per Order XX, Rule 21 (1) of the CPC, from

the date of delivery of this judgment until full satisfaction. In the upshot, therefore, this Court grants the 1st Plaintiff the following relief defendant is ordered to remit the sum of Tshs 278,668,211.513/= being the produce cess/levy accrued from 2021-2023 Produce seasons to the first plaintiff. 6 ii. The 1st Plaintiff be paid interest of 12% per annum of item (i) above, from the date of delivery of this judgment until satisfaction of thereof and iii. Costs of the suit be borne by the defendant. It is so ordered. A.A. DATED at SUMBA this bruary, 2025. . MRISHA

JUDGE 11.02.2025 7