CONSENT JUDGMENT DTA PR
- Citation
- CONSENT JUDGMENT DTA PR
- Status
- Judgment
- Jurisdiction
- Tanzania
- Court
- TANZLII
- Decision
- 24 February 2024
- Posture
- Civil / Consent Judgment
- Language
- English
More details
- Court
- TANZLII
- Decision
- 24 February 2024
- Posture
- Civil / Consent Judgment
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The parties amicably resolved the dispute through a binding settlement deed, agreeing to payment terms for the outstanding statutory contributions, thus warranting the marking of the suit as settled by consent judgment.
Court disposition
suit settled by consent judgment
Orders
- Defendant to pay plaintiffs TZS 51,347,147.75 in ten instalments from March 2025 to December 2026.
- Remittance of arrears to be concurrent with current contributions.
- No further rights or obligations between parties upon full execution of the deed.
02
Material facts
Parties
The Board of Trustees of the National Social Security Fund
PlaintiffThe Attorney General
PlaintiffDTA Engineering Company Ltd
Defendant Counsel: Yisambi SiwaleAmounts and remedies
- Outstanding Statutory Contribution: TZS 51,347,147.75
- Total Claimed (including Penalties): TZS 128,899,595.92
- Penalty Amount: TZS 77,552,448.17
03
Procedural history
Posture
Civil / Consent Judgment
04
Questions and positions
Legal issues
- 01
Whether the defendant failed to remit statutory social security contributions and penalties as required by law
- 02
Whether the parties' settlement deed resolves all claims arising from the suit
Party arguments
- Applicant
- The defendant failed, neglected, and defaulted to remit members' contributions and penalties as required by law, despite repeated demands.
- Respondent
- The defendant agreed to settle the outstanding statutory contributions and penalties through a deed of settlement, paying the agreed sum in instalments.
05
Court’s reasoning
Legal principles
- 01
Law establishing the National Social Security Fund
Employers are statutorily required to remit both employer and employee contributions to the social security fund monthly, and failure attracts penalties.
- 02
Civil procedure principles
A consent judgment based on a settlement deed is binding on the parties and resolves the dispute as per agreed terms.
06
Ratio, limits and disposition
Ratio decidendi
The parties amicably resolved the dispute through a binding settlement deed, agreeing to payment terms for the outstanding statutory contributions, thus warranting the marking of the suit as settled by consent judgment.
Obiter and limits
- Upon full execution of the deed and satisfaction of its clauses, there shall be no further rights or obligations between the parties in relation to this case.
- The terms of the settlement deed are binding on the parties and their successors, but not enforceable by third parties except the defendant's employees who are members of the plaintiffs.
Court disposition
suit settled by consent judgment
- Defendant to pay plaintiffs TZS 51,347,147.75 in ten instalments from March 2025 to December 2026.
- Remittance of arrears to be concurrent with current contributions.
- No further rights or obligations between parties upon full execution of the deed.
Source and reliance status
TANZLII · 24 February 2024
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
TANZLII
Judgment· 24 February 2024
IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA SUB-REGISTRY OF GEITA
AT GEITA CIVIL CASE NO. 30517 OF 2024
THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND......................................................1st PLAINTIFF THE ATTORNEY GENERAL.....................................................2nd PLAINTIFF
VERSUS DTA ENGINEERING COMPANY LTD ...........................................DEFENDANT
CONSENT JUDGEMENT Date of last Order: 24 February 2024 Date of Judgment: 24 February 2024 MHINA, J. This consent judgement emanates from a settlement deed duly signed by the Plaintiffs and Defendant and filed in this court on 24 February 2025. The plaintiffs, THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND, and THE ATTORNEY GENERAL instituted the present suit under summary procedure against the defendant, DTA ENGINEERING COMPANY LTD, claiming, inter alia, for the following reliefs; 1 a. The Defendant to be ordered to pay the sum of TZS 128,899,595.92 (Tanzanian Shillings One Hundred Twenty-Eight Million Eight Hundred Ninety-Nine Thousand Five Hundred Ninety-Five Ninety-Two Cents Only) being un- remitted members' contributions and penalties due and payable to the Plaintiff by the Defendant. b. Interest on the decretal sum at the Court rate of 7% from the date of delivery of Judgment until the same shall be fully satisfied; c. Cost of and incidental to the filing of the suit; and d. Any other and further relief as this Honorable Court shall deem fit and just to grant. Brief facts which led to the institution of the suit are as follows; By the law establishing the 1st plaintiff, the defendant is required each month to make its compulsory contribution and that of its employees at the rate of 10% and 10%, respectively, making a total of 20% of the (member) employee's
wage. However, even though the defendant's obligation by law to remit members' contributions each month has failed, neglected, ignored and defaulted to remit the members' contributions to the 1st plaintiff for some of the months and delayed remittance in some of the months, 2 which attracted imposition of the penalty. The defendant's breach of its statutory obligations has led to the default remittance of members' principal contributions, amounting to TZS 51,347,147.75, which sum continues to accrue as long as it remains due and - penalties of TZS 77,552,448.17 (covering various periods between October 2016 and August 2017), totaling TZS.128,899,595.92 That breach caused, as required by the law, the plaintiff, on numerous occasions, demanded the defendant to perform the said statutory obligation on remittance of members' contributions, but the efforts proved futile. Today, on 24 February 2025, the parties decided to settle the matter amicably and signed the settlement deed. The deed was signed by Omary Nziya, the Director of Operations of the 1st plaintiff and witnessed by Suleiman Msangi, Director of Legal Services of the 1st plaintiff. On the part of the defendant, Adam John Mlugala, the defendant’s Director, signed the deed witnessed by Mr. Yisambi Siwale, Advocate. WHEREFORE, the Plaintiffs and Defendant irrevocably and amicably agree as follows; 3 1. The DEFENDANT shall pay the PLAINTIFFS a total sum of TZS 51,347,147.75/=, the outstanding statutory contribution the DEFENDANT owes to the 1st PLAINTIFF.
2. The Parties hereto further agree that the remittance of the sum referred to in clause one above shall be paid in ten (10) instalments for the period of ten (10) months, effective from March 2025 to December 2026.
3. That remittance of outstanding arrears will be concurrent with the submission of current contributions to avoid the accumulation of the same.
4. That, upon full execution of this Deed and satisfaction of clauses, there shall be no further rights or obligations between the Parties in relation to this case.
5. That the Parties agree that the terms of this Deed of Settlement shall be binding, upon and insure solely to the benefit of the Parties hereto and their respective successors in title and representative, and shall not be enforceable by or insure to the benefit of any third party apart from the defendant employees who are the members of the plaintiffs. 4 By this consent judgment, this court hereby declares that the parties hereabove have resolved their dispute. Consequently, this suit is marked settled by the settlement deed signed and filed by the parties, as evidenced by the terms agreed upon under the settlement deed. For the reasons above, the deed of settlement signed by the parties and filed in this court constitutes the consent judgment of this court. It is so ordered. K. D. MHINA
JUDGE 24/02/2025 Court: The right to appeal is fully explained to the parties. 5 K. D. MHINA
JUDGE 24/02/2025 6
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