NSSF VS C

THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA IN THE SUB-REGISTRY OF MWANZA AT MWANZA CIVIL CASE NO. 20114 OF 2024 THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND ……………………..………. 1ST PLAINTIFF THE ATTORNEY GENERAL ....................................................... 2ND PLAINTIFF VERSUS C. F. BAY RESORT LIMITED......................................................... DEFENDANT JUDGMENT 11/12/2024 & 14/2/2025 ROBERT, J:- The Plaintiffs, the Board of Trustees of the National Social Security Fund (NSSF) and the Attorney General, instituted this suit against the Defendant, C.F. Bay Resort Limited, seeking payment of TZS 9,327,000 as outstanding statutory contributions for employees, TZS 7,935,725 as penalties for late remittance, interest on the decretal sum at the court rate of 7% from the date of judgment until full satisfaction, and costs of the suit. The Defendant, despite being duly served with the summons, failed to enter appearance or file a Written Statement of Defence. Consequently, the matter proceeded ex-parte under Order VIII Rule 14(1) of the Civil Procedure Code, Cap. 33 R.E. 2019. 1 The Plaintiffs were represented by Ms. Sabina Yongo, State Attorney, while the Defendant remained unrepresented. To establish their case, the Plaintiffs called PW1 – Mr. Kelvin Muslim Babu, a compliance officer at NSSF Mwanza Region, who testified under oath. PW1 testified that the Defendant, C.F. Bay Resort Limited, was registered as a contributing employer with Employer ID No. 1008395 on 12th October 2016 under the NSSF Act. According to the law, the Defendant is required to remit 20% of its employees' monthly wages as social security contributions (10% employee's contribution and 10% employer's contribution). However, the Defendant failed to remit contributions for various periods between January 2022 and October 2023, accumulating arrears of TZS 9,327,000 and attracting statutory penalties amounting to TZS 7,935,725. PW1 further testified that, an inspection was conducted at the Defendant's premises on 24th October 2023, after the Defendant was duly notified through a Notice of Inspection (Exhibit P2). An Exit Meeting was held, and an Exit Meeting Report (Exhibit P3) was prepared, confirming the outstanding arrears. 2 A Schedule of Arrears (Exhibit P4), Penalty Notice (Exhibit P5), and Final Inspection Report (Exhibit P6) were generated, detailing the unpaid contributions and penalties. A Demand Notice (Exhibit P7) was issued to the Defendant on 25th October 2023, granting 14 days for payment, but the Defendant failed to comply. Based on the documentary evidence presented and PW1's testimony, the Plaintiffs assert that the Defendant has willfully defaulted on its statutory obligation, causing financial loss and legal repercussions. Having examined the pleadings, oral testimony, and documentary evidence tendered by the Plaintiffs, this Court finds as follows: The Defendant, being a registered employer under NSSF, is legally bound by the National Social Security Fund Act to remit monthly contributions. The evidence adduced, particularly Exhibits P1 to P7, conclusively establishes that the Defendant defaulted in remitting statutory contributions and incurred penalties due to late payment. Under Sections 11(6), 12(1), and 14(1) of the NSSF Act, a contributing employer is obligated to remit contributions to the Fund promptly. Section 14(3) further stipulates that failure to do so attracts a penalty. The Defendant has neither disputed these claims nor provided any justification for its default. 3 The Defendant, having been duly served but failing to defend, has not challenged the claims or evidence presented. The suit, therefore, proceeded ex-parte, and the court is satisfied that the Plaintiffs have proved their claims on a balance of probabilities. Based on the evidence presented and the applicable law, this Court grants judgment in favor of the Plaintiffs as follows: 1. The Defendant, C.F. Bay Resort Limited, is hereby ordered to pay the sum of TZS 9,327,000 being the outstanding principal members’ contributions covering the period from January 2022 to October 2023. 2. The Defendant is further ordered to pay the sum of TZS 7,935,725 being statutory penalties for late payment of contributions. 3. Interest on the decretal sum shall accrue at the court rate of 7% per annum from the date of judgment until full satisfaction. 4. The Defendant shall bear the costs of this suit. It is so ordered. K.N. ROBERT JUDGE 14.2.2025 4