CIVIL CASE NO

IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA ARUSHA SUB-REGISTRY AT ARUSHA CIVIL CASE NO. 36 OF 2022 THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND PLAINTIFF VERSUS NGURDOTO MOUNTAIN LODGE LTD DEFENDANT CONSENT JUDGMENT 09/07/2024 & 01/08/2024 BADE, J. The brief background of this matter according to the plaint is that, on 13/08/2004, Defendant was registered as a contributing member employer of Plaintiff in accordance with the law establishing the Plaintiff and was issued with a membership registration no. 709093 to that effect. Under the law establishing the plaintiff, the Defendant is required in each month to make its compulsory contribution and that of its employees at rates of 10% and 10% respectively making a total of 20% of the employee's wage. That, even though it IS obligatory [R law for / ’ Qais 1 of 7 Defendant to remit members' contributions on each month, Defendant has failed, neglected, ignored and/or defaulted to remit the members' contributions to Plaintiff for some of the months. That Defendant has defaulted remittance of members' principal contribution amounting to TZS 173,505,680.00 being outstanding principal members' contributions for the total period of 28 months covering various stages between April 2015, to September 2015, June 2018 and November 2018 to December 2018, January 2019 to December 2019, November 2020 to December 2020 and January 2021 to May 2021 and accumulated penalties amounting to TZS 145,202,510.20 That brought the Plaintiff's claims against Defendant to become for payment of TZS 318,708,190.20 being outstanding principal members' contributions plus accumulated penalties thereon which sum continues to accrue as long as it remains due as aforementioned. In the final account, the Plaintiff sued the Defendant before this Court and prayed for the following orders: i. The defendant to be ordered to pay the sum of TZS 318,708,190.20 being un-remitted members' contributions plus accumulated penalties thereon due and payable to the Plaintiff by the Defendant. _ j //. The Defendant pays interest on the decretal sum from April 2015, when the sum accrued to the date of judgment at an overall lending rate of 15% per annum as published by the Bank of Tanzania's Monthly Economic Review January 2010 publication. m. The Defendant to pay interest on judgment debt at the prescribed court rate of 7% from the date of delivery of judgment until the same shall be fully satisfied. iv. The Defendant pays the cost of and incidental to the filing of the suit v. Any other and further relief as this court shall deem fit and just to grant. After the Plaintiff instituted the suit, as it is the law, the matter was assigned for mediation. The Defendant expressed his willingness to settle the matter amicably out of court. After a long period of reconciliation and compromise, the parties managed to settle the matter out of court and filed a Deed of Settlement in Court. Their terms of agreement on the Deed of Settlement are as follows: Page 3 of 7 i) That, the defendant shall pay the plaintiff a total of TZS 323, 335,552 (say Tanzania Shillings Three Hundred and Twenty-Three Million Three Hundred and Thirty Five thousand Five Hundred and Fifty Two only) being the remaining outstanding statutory contribution that the Defendant owes the Plaintiff whereby member's principal contribution amounting to TZS 148,677,251.80 (One Hundred Forty-Eight Million Six Hundred Seventy-Seven Thousand Two Hundred Fifty-One and Eighty Cents Only) and accumulated penalties amounting to TZS 174,658,270.20 (One Hundred Seventy-Four Million Six Hundred Fifty-Eight Thousand Two Hundred and Seventy and Twenty Cent Only). 2) The parties hereto further agree that the remittance of the sum referred to in clause 1.1 above shall be paid in twenty-four (24) installments for the period of twenty- four (24) months effective from August 2024 to August 2026. 3) The Defendant undertakes to be current in the remittance of members' contributions in respect of the Defendant's of 7 employees who are also Plaintiff's members without default at any time. 4) In further agreement, the parties approve that the deed of settlement be filed in court to signify the parties' agreement. They have also agreed that by way of the said deed, notify the court of the parties’ agreement to settle the matter in the modalities stipulated in the deed. 5) Upon full execution of the said deed and satisfaction of clauses 1.1, 1.2, 1.3, and 1.4 herein, there shall be no further rights or obligations between the parties concerning this case. The Parties have recorded a further agreement that: a) Upon being filed in court and payment of settlement sum, as stipulated in clauses 1.1 in the modality described in the schedule of payment under article II of the deed of settlement, premised on the fact that the Defendant remains current in remittance of members' contributions, would finally satisfy the decree and shall have the same effect as an otherwise fully and finally satisfied Decree of the court. Page 5 of 7 b) The deed of settlement shall, upon being filed in court, have the same effect as a decree duly made by the court capable of being executed in the same manner as any other decree of the court; which means that in the event of default of any term of the deed of settlement, then the said deed shall become enforceable as a decree of the court and the usual default clause would apply. Having passed through the Deed of Settlement filed in this court on 23/07/2024 I am satisfied that the parties herein have arrived amicably into a lawful agreement which disposed the whole suit. As the spirit of this Court is to encourage the parties to settle their disputes in an amicable way, the deed of settlement entered is accordingly recorded to form part of this consent judgment as held by the Court of Appeal in the case of Motor Vessel Sepideh and Another vs Yusuph Mohamed Yusuph and two Others, Civil Application No. 237 of 2013 (unreported) where the Court held: "Where there is a lawful agreement or compromise, the Court is bound to record settlement once it is arrived by the parties" In the event of the status given, this Court is guided by Order XXIII Rule 3 of the Civil Procedure Code, [Cap 33 R.E 2019] which provides: Page 6 of 7 "Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise, or where the defendant satisfies the plaintiff in respect of the whole or any part of the subject matter of the suit, the court shall order such an agreement, compromise or satisfaction to be recorded, and shall pass a decree in accordance therewith so far as it relates to the suit". In lieu of the foregoing, the present case is marked settled to the extent of the Deed of Settlement reached by the parties as per the terms and conditions recorded therein. It is so ordered. DATED at ARUSHA this 01st of AUGUST 2024 A. Z. BADE JUDGE 01/08/2024 Consent Judgment delivered in the presence of Parties / their representatives in chambers on the 01ST day of AUGUST 2024 A.Z. BADE JUDGE 01/08/2024 Page 7 of 7