NSSF vs Geita Cable Final

IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA GEITA SUB REGISTRY AT GEITA CIVIL CASE NO. 2034 OF 2025 THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND………………………….…..1ST PLAINTIFF ATTORNEY GENERAL……………………………………….……….…2ND PLAINTIFF VERSUS GEITA CABLE TV LIMITED …….…………………….……...…………. DEFENDANT SUMMARY JUDGEMENT Date of last order: 05/03/2025 Date of Judgement: 10/03/2025 MWAKAPEJE, J.: The Plaintiffs herein, by way of summary procedure outlined in Order XXXV of the Civil Procedure Code, Cap. 33, R.E 2019, initiated this suit against the Defendant seeking the following orders, as I reproduce them hereunder: 1. The Defendant to be ordered to pay the sum of TZS 4,311,450.00 (Tanzanian Shillings Four Million Three Hundred Eleven Thousand Four Hundred Fifty Only) being un-remitted members' contributions and penalties due and payable to the plaintiff by the defendant as per paragraph 10 of the plaint. 2. 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; 3. Cost of and incidental to the filing of the suit; and Page 1 of 6 4. Any other and further relief this Honorable Court shall deem fit and just to grant. Before delving into the crux of the matter, it is imperative for this court to narrate the sequence of events that have led to the present lawsuit as delineated in the complaint. The defendant was enrolled as a contributing employer member of the 1st plaintiff with a Membership Certificate of Registration Number 669962 as per annexure "NSSF- 1". Pursuant to the legislation establishing the plaintiff, the defendant is obligated to make compulsory contributions on a monthly basis, as well as those of its employees, at a rate of 10% for each, totaling 20% of the employee's salaries. It is further alleged that notwithstanding this legal obligation, the defendant has failed, neglected, or defaulted in remitting the members' contributions to the 1st plaintiff on a monthly basis, resulting in delayed payments that have incurred penalties. The facts also indicate that the defendant's failure to remit the members' contributions to the 1st plaintiff deprives its employees (the plaintiffs' members) of receiving their rightful pension benefits upon retirement, death, or any other exit from the scheme. Furthermore, the facts reveal that the defendant is in breach of its statutory duties and has defaulted in remitting the members' statutory contributions amounting to TZS 3,600,000 (Tanzanian Shillings Page 2 of 6 Three Million Six Hundred Thousand) as the outstanding principal members' contributions between September 2002 to February 2024. This sum continues to accrue as long as it remains unpaid, along with penalties amounting to TZS 711,450 (Tanzania Shillings Seven Hundred Eleven Thousand Four Hundred Fifty) for the same period. Consequently, the total claim against the defendant is TZS 4,311,450 (Tanzanian Shillings Four Million Three Hundred Eleven Thousand Four Hundred Fifty), representing the outstanding principal members' contributions and penalties, which continue to accumulate until settled. Due to the defendant's breach and non-compliance with its statutory obligations to remit the members' contributions, the Plaintiffs have consistently demanded compliance to no avail. To substantiate the claimed amount, the plaintiffs have included various documents in the complaint, such as copies of demand letters, the Certificates of Registration and registration details confirming the defendant's membership with the first plaintiff, inspection reports, exit meeting reports, and a schedule of outstanding contributions and penalties. These documents are considered integral to the court's records. It is on these grounds that the plaintiffs have posited the prayers as outlined above. Page 3 of 6 When the matter was called for the hearing on 05/03/2025, the plaintiffs were represented by Mr. William Mhina, the erudite State Attorney, while the defendant made no appearance in the Court despite being issued with the notices. In his submission, Mr. Mhina argued that the matter was filed under the summary procedure pursuant to Order XXXV of the Civil Procedure Code and section 74A (1) of the NSSF Act wherein the 1st plaintiff sought to recover a total sum of TZS 4,311,450 (Tanzanian Shillings Four Million Three Hundred Eleven Thousand Four Hundred Fifty), comprising the principal amount and accrued penalties from July 1998 to May 2021. The principal amount stands at TZS 3,600,000 (Tanzanian Shillings Three Million Six Hundred Thousand), while the penalties amount to TZS 711,450 (Tanzania Shillings Seven Hundred Eleven Thousand Four Hundred Fifty). Mr. William further submitted that since the defendant has failed to file an application for leave to defend, hence he prayed for a summary judgment to be entered in the favour of the plaintiffs in accordance with the law and as the principle established in the case of CRDB Bank vs John Kagimbo Rwambagaza [2002] TLR 117. Additionally, he prayed for the grant of the prayers in the plaint. Page 4 of 6 After studying the submissions of Mr. William together with the attached documents, it is incumbent upon me to ascertain whether there are any justifiable reasons to enter a Summary Judgment in favor of the plaintiffs. From the records, it is evident that the defendants were duly served on 12/02/2025 and on 28/02/2025 but failed to file leave to defend and appear. It is a fundamental legal principle that where a suit is instituted under the summary procedure and where no leave to appear and defend has been granted, the allegations in the plaint are deemed admitted as per Order XXXV Rule 2(2) of the Civil Procedure Code. The essence of the summary suit articulated in the case of CRDB Bank vs John Kagimbo Rwambagaza, [2002] TLR 117. In that case it was stated that: "The purpose of Order XXXV Summary Procedure is to enable a plaintiff to obtain judgment expeditiously where the defendant has in effect no substantial defence to the suit and prevent the defendant from employing delaying tactics and, in the process, postpone the day of reckoning. I am of the settled view that Order XXXV is self- contained in so far as it relates to the suits stipulated there under." The law also mandates that the reliefs sought in a summary suit must align with the relief permissible under the summary procedure, as established in the case of Prosper Paulo Massawe & Others vs Access Bank Tanzania Limited, Civil Appeal No. 39 of 2014. Consequently, the reliefs being requested in this case fall within the Page 5 of 6 purview of the summary procedure as outlined in section 74A(1) of the NSSF Act, in conjunction with Order XXXV of the Civil Procedure Code. In light of the aforementioned position of the law and after careful consideration of the submitted pleadings, this Court deems it appropriate to grant Summary Judgment in favour of the plaintiffs against the defendants in the following manner: 1. The defendant is ordered to pay the sum of TZS 4,311,450 (Tanzanian Shillings Four Million Three Hundred Eleven Thousand Four Hundred Fifty), being unremitted members' contributions and penalties due and payable to Plaintiff by Defendant; 2. Interest thereof at the Court's rate of 7% per annum from the date of delivery of the judgment to the date of full recovery; and 3. The Plaintiffs shall recover the costs arising from the suit. It is so ordered. Right to appeal explained. DATED at GEITA this 10th day of March 2025. G.V. MWAKAPEJE JUDGE Page 6 of 6