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Tanzania Judgment

TANZLII

Summary Judgement NSSF vs

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Research organized from the available case record

Source document

01

Holding and result

The defendant's failure to remit statutory contributions and accrued penalties, coupled with failure to prosecute its application for leave to defend, entitles the plaintiffs to summary judgment for the claimed sums, interest, and costs.

Court disposition

summary judgment for plaintiffs

Orders

  • Defendant to pay TZS 29,941,479.57 to the 1st Plaintiff for unremitted contributions and penalties for August 2020 to September 2023.
  • Defendant to pay interest on the decretal sum from August 2020 to date of judgment at 15% per annum as per Bank of Tanzania Monthly Economic Review December 2019.
  • Defendant to pay interest on the decretal sum at 7% per annum from date of judgment until full satisfaction.
  • Defendant to bear costs of the suit.

02

Material facts

Parties

The Board of Trustees of the National Social Security Fund

Plaintiff

Attorney General

Plaintiff

Internal Printers Limited

Defendant

Amounts and remedies

  • Principal Outstanding Contributions: TZS 21,496,000
  • Accumulated Penalties: TZS 8,445,479.57
  • Total Decretal Sum: TZS 29,941,479.57
  • Interest Rate (pre Judgment): percent per annum 15
  • Interest Rate (post Judgment): percent per annum 7

03

Procedural history

  1. Posture

    Civil Summary Suit / Summary Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant, as a registered employer, failed to remit mandatory social security contributions and accrued penalties, despite statutory obligations and demand notices.
Respondent
The defendant did not file written submissions in support of its application for leave to defend; no substantive argument was presented.

05

Court’s reasoning

  1. 01

    National Social Security Fund Act [Cap 50 R.E. 2018], Section 74A(2)

    Employer's statutory obligation to remit social security contributions for employees and self, with penalties for default or delay.

  2. 02

    Order XXXV of the Civil Procedure Code, Cap 33 R.E. 2019

    Summary judgment may be entered where the defendant fails to show a triable issue or defend the claim.

06

Ratio, limits and disposition

Ratio decidendi

The defendant's failure to remit statutory contributions and accrued penalties, coupled with failure to prosecute its application for leave to defend, entitles the plaintiffs to summary judgment for the claimed sums, interest, and costs.

Court disposition

summary judgment for plaintiffs

  • Defendant to pay TZS 29,941,479.57 to the 1st Plaintiff for unremitted contributions and penalties for August 2020 to September 2023.
  • Defendant to pay interest on the decretal sum from August 2020 to date of judgment at 15% per annum as per Bank of Tanzania Monthly Economic Review December 2019.
  • Defendant to pay interest on the decretal sum at 7% per annum from date of judgment until full satisfaction.
  • Defendant to bear costs of the suit.

Source and reliance status

TANZLII · 1 January 2024

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Judgment reading view

Judgment text

The complete available source text.

Source document

TANZLII

Judgment· 1 January 2024

Summary Judgement NSSF vs

THE JUDICIARY OF TANZANIA

IN THE HIGH COURT OF UNITED REPUBLIC OF TANZANIA AT MOSHI CIVIL CASE NO. 1370 OF 2024

THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND……………………....1st PLAINTIFF ATTORNEY GENERAL…………………………………………..…2ND PLAINTIFF

VERSUS INTERNAL PRINTERS LIMITED………………………………..……..DEFENDANT

SUMMARY JUDGMENT 13th November & 12th December 2024 MONGELLA, J. The Plaintiff in this suit filed a summary suit against the defendant in terms of Order XXXV of the Civil Procedure Code, Cap 33 R.E. 2019 read together with Section 74A (2) of the National Social Security Fund Act [Cap 50 R.E. 2018]. He is claiming against the defendant a total sum of TZS. 29,941,479.57 being un-remitted member’s contributions plus accumulated penalties thereon due and payable to the Plaintiff Page 1 of 5 following the defendant’s breach to heed to her statutory obligation to remit member’s contributions to the 1st Plaintiff as required by the law and failure to heed to the demands by the 1st Plaintiff to honour her obligations. They as well claim from the defendant reliefs being, interest on the decretal sum from August 2020, when the sum accrued to the date of Judgement at an overall lending rate of 15% per annum as published by the Bank of Tanzania Monthly Economic Review, January 2019 publication; interest on Judgement debt at the prescribed Court rate of 7% from the date of delivery of Judgment until the same shall be fully satisfied; costs of the suit and any other incidental costs pertaining to the filing of the suit; and any other relief as shall be deemed fit and just by this Court. Drawing form the Plaint, the facts of the matter are briefly as follows: the defendant was a registered

contributing member employer of the 1st Plaintiff in accordance with the law establishing the Plaintiff Fund. As such he was issued a Certificate of Registration with number 487589 as evidenced under “Annexture NSSF-1” attached to the Plaint. In accordance with the agreement between the two and the law establishing the 1st Plaintiff, the Defendant was obligated remit on each month to the Plaintiff his own compulsory contribution at 10% and that from his employees at 10%, which makes a total of 20% of each employee’ wage. Page 2 of 5 The defendant failed to honour his legally mandated obligation to remit the said contributions for some of the months and also delayed in remitting his contributions in some of the months. This attracted imposition of penalty as well. To substantiate this claim, the Plaintiffs annexed to the Plaint the inspection report, exit meeting report and a schedule of outstanding contributions plus penalties notice to the Defendant, marked as “annexture NSSF-2.” The facts in the Plaint further depict Defendant’s owed debt being divided into two parts. First is the defaulted principal contribution amounting at TZS. 21,496,000/-, being outstanding principal member’s contributions for the period between August 2020 to September 2023. Second, are the accumulated penalties amounting at TZS. 8,445,479.57, which continues to accrue so long as it remains

unpaid. That, the 1st Plaintiff demanded from the Defendant payment of the outstanding amount and remittance of the members’ contributions, but in vain. A copy of the demand notice was annexed to the Plaint as “annexture NSSF-3” to support the assertion. This led the plaintiffs to filed the matter at hand. Having being duly served with summons on the summary suit, the defendant sought for leave to defend vide Civil Application No. 14327 of 2024. Parties were ordered to argued the application by written submissions. The Defendant defaulted in filing his written submission resulting into his application being dismissed for want of prosecution. Page 3 of 5 In the premises, the Plaintiffs are hereby entitled to a summary judgment which I hereby proceed to enter in her favour. It is thus hereby decreed that: 1. The Defendant shall pay the 1st Plaintiff a total of TZS 29,941,479.57 (Tanzanian Shillings Twenty-Nine Million Nine Hundred Forty-One Thousand Four Hundred Seventy-Nine Fifty- Seven Cents Only) being un-remitted members’ contributions plus accumulated penalties thereon from August 2020 to September 2023.

2. The defendant shall pay the plaintiffs interest on the decretal sum from August 2020, when the sum accrued to the date of Judgment at an overall lending interest rate of 15% per annum as published by the Bank of Tanzania Monthly Economic Review of December 2019 Publication.

3. The defendant shall pay the plaintiffs interest on decretal sum at the prescribed Court rate of 7% per annum from the date of delivery of Judgment to the date the same shall be fully satisfied.

4. Costs of the suit to be borne by the Defendant. Page 4 of 5 Dated and delivered at Moshi on this 12th day of December 2024. X L. M. MONGELLA

JUDGE Signed by: L. M. MONGELLA Page 5 of 5

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Order XXXV of the Civil Procedure Code, Cap 33 R.E. 2019

Legislation

Legislation referenced in the available case record.

Section 74A(2) of the National Social Security Fund Act [Cap 50 R.E. 2018]

Legislation

Legislation referenced in the available case record.

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