JUDGMENT NSSF VS SWILLA SECONDARY

THE UNITED REPUBLIC OF TANZANIA JUDICIARY IN THE HIGH COURT OF TANZANIA MBEYA SUB – REGISTRY AT MBEYA CIVIL CASE NO. 22 OF 2022 CASE REFERENCE NO. 20221122000462954 THE BOARD OF TRUSTEES OF NATIONAL SOCIAL SECURITY FUND..............................................................PLAINTIFF VERSUS REGISTERED TRUSTEES OF THE CHRISTIANS IN EDUCATION AND DEVELOPMENT PROMOTIONS (CEDP) T/A SWILLA SECONDARY SCHOOL ........................................... DEFENDANT JUDGMENT 12th September & 26th November, 2024 NONGWA, J. On 18th November 2022 the Plaintiff, the Board of Trustees of the National Social Security Fund preferred a summary procedure suit against the defendant, the Registered Trustees of the Christian Education and Development Promotions (CEDP) T/A Swilla Secondary School, claiming among other things, payment of TZS 238,145,320/= being unremitted members’ contributions plus accumulated penalties of TZS 448,939,008.21/= It has been pleaded that the defendant has been the plaintiff’s registered contributing member as an employer since 19th February 2001 with membership registration No. 631795. That under the law establishing 1 the plaintiff, the defendant is required to remit its compulsory contribution of its employees at the rate of 10% and 10 % for the employer, making a total of 20% to be remitted in each month. It is documented that, the defendant has failed, neglected, ignored, and/or defaulted to remit contribution of TZS 238,145,320/= for forty-eight months from June 2016 to May 2020 and accumulated penalties of TZS 448,939,008.21/= covering the period between May 2009 to February 2019. Thus, the plaintiff claims a sum total of TZS 687,084,328.21/= from the defendant. Upon a notice for summary suit being issued and served on the defendant she entered appearance but did not seek leave which would have enabled to defend herself. Later he defaulted appearance. The plaintiff was represented by Mr. Emmanuel Kamkulu, State Attorney who pressed for hearing of the matter. The matter was heard by filing witness statement of one witness, Izzadin Merevi (PW1). In his statement PW1 narrated that the defendant is registered as a plaintiff members’ contributor with certificate of registration No 631795 which was tendered and admitted as exhibit P1. He stated further that the defendant is required to remit monthly contribution of 20%, 10% for the employer and 10% for the employee. That the defendant in several occasions has failed to remit the contribution as required which necessitated them to conduct inspection in the defendant’s office and was dully issued with notice of statutory inspection, exit meeting, inspection report, penalty 2 notice and schedule of the outstanding statutory arrears and penalties. PW1 added that the defendant was served with demand notice stating the details of the claim but did not respond. The mentioned documents were introduced in evidence and admitted as exhibit P2. PW1 went on to state that the defendant has failed, neglected, ignored, and/or defaulted to remit contribution of TZS 238,145,320/= and accumulated penalties of TZS 448,939,008.21/= making the outstanding liability of the defendant to the plaintiff TZS 687,084,328.21/=. Finally, PW1 prayed the defendant be ordered to pay the sum of TZS 687, 084,328.21/= being unremitted members’ statutory contribution and accumulated penalties thereon due and payable to the plaintiff, interest on the decretal sum at the prescribed court rate of 7% per annual from the date of judgment to date of full payment, costs of the suit and other reliefs. Having considered the pleading and evidence, the only issue for my determination is whether the plaintiff is entitled to the claimed amount. From the evidence given by PW1 together with exhibit P1, I am satisfied that the defendant through exhibit P1 was dully registered as a contributing member with the plaintiff. Being a member of the plaintiff, the defendant in terms of section 12 of the National Social Security Fund Act [Cap 50 R: E 2018] is required to remit statutory contribution 3 members at the rate of 10% for employer and 10% deducted from the employee wage. Under section 14(1) contribution has to be remitted within one month after the end of the month in respect of which the contributions are due and payable. In this suit the plaintiff through his pleading alleges that the defendant has failed to remit the statutory members contribution amounting to TZS 238,145,320/= and accumulated penalties of TZS 448,939,008.21/=. PW1 in his evidence said the defendant was issued notice of statutory inspection, exit meeting, inspection report, penalty notice and schedule of the outstanding statutory arrears and penalties and demand note, exhibit P2. I have scrutinized the relevant document supporting the plaintiff’s case. The inspection report dated 30/6/2020, exit meeting report dated 29/6/2020, long overdue un-settled statutory contribution dated 29/6/2020 and penalty on late payment of contribution, dated 30/6/2020. In these documents amount indicated is arrears of contribution is TZ 338,145,320/= and accumulated penalties of TZS 448,939,008.21/=. This entails that the amount claimed in the plaint tallies with documentary evidence relied upon by the plaintiff and admitted in evidence. As the defendant did not dispute the claim, I am satisfied, the plaintiff has proved the claim and proceed to enter summary judgment as 4 provided for under Order XXXV Rule 2 of the CPC. It is hereby ordered that the defendant shall pay the plaintiff the following; 1. Total sum of TZS.687,084,328.21/= being unremitted members’ contributions plus accumulated penalties. 2. Interest on the decretal sum at the prescribed Court rate of 7% from the date of delivery of judgment until the same shall be fully satisfied. 3. In the circumstances of this suit, I make no orders as to costs. It is so ordered. V.M. NONGWA JUDGE 26/11/2024 Dated and Delivered at Mbeya this 26th in presence of Mr. Emmanuel Kamukulu SA for the Plaintiff. V.M. NONGWA JUDGE 5