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Tanzania Judgment

TANZLII

WISEWAYS JUDGMENET AND DECREE

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

Defendant was served but failed to appear or defend; plaintiffs established statutory breach and entitlement to un-remitted contributions and penalties. Summary judgment granted as per procedural and substantive law.

Court disposition

summary judgment for plaintiffs

Orders

  • Defendant to pay TZS 10,115,840 as un-remitted members' contributions plus accumulated penalties
  • Defendant to pay interest on the decretal sum from July 2019 to date of judgment at 15% per annum
  • Defendant to pay interest on the decretal sum at court rate of 7% per annum from date of judgment until full satisfaction
  • Defendant to pay costs of the suit

02

Material facts

Parties

The Hon. Attorney General

Plaintiff Counsel: Janet Sekajingo

The Board of Trustees of the National Social Security Fund

Plaintiff Counsel: Janet Sekajingo

Wiseways Valley

Defendant

Amounts and remedies

  • Un Remitted Members' Contributions: TZS 10,115,840

03

Procedural history

  1. Posture

    Civil Summary Suit / Summary Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant failed, neglected, ignored, and defaulted to remit members' contributions as required by law, resulting in outstanding principal and penalties. Plaintiffs demanded performance, but defendant refused or defaulted.
Respondent
Defendant did not enter appearance or file any defense.

05

Court’s reasoning

  1. 01

    Order XXXV Rule 2(2) of the Civil Procedure Code Cap 33 R.E 2019

    Failure to enter appearance after service entitles plaintiff to summary judgment

  2. 02

    Section 74A of the NSSF Act

    Statutory obligation to remit monthly contributions for employees and employer

06

Ratio, limits and disposition

Ratio decidendi

Defendant was served but failed to appear or defend; plaintiffs established statutory breach and entitlement to un-remitted contributions and penalties. Summary judgment granted as per procedural and substantive law.

Court disposition

summary judgment for plaintiffs

  • Defendant to pay TZS 10,115,840 as un-remitted members' contributions plus accumulated penalties
  • Defendant to pay interest on the decretal sum from July 2019 to date of judgment at 15% per annum
  • Defendant to pay interest on the decretal sum at court rate of 7% per annum from date of judgment until full satisfaction
  • Defendant to pay costs of the suit

Source and reliance status

TANZLII · 10 December 2024

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Judgment reading view

Judgment text

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Source document

TANZLII

Judgment· 10 December 2024

WISEWAYS JUDGMENET AND DECREE

IN THE HIGH COURT OF TANZANIA (DAR ES SALAAM SUB-REGISTRY)

AT DAR ES SALAAM CIVIL CASE NO 11921 OF 2024 THE HON. ATTORNEY GENERAL.................................................. PLAINTIFF

THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND................................... 2ND PLAINTIFF

VERSUS WISEWAYS VALLEY.....................................................................DEFENDANT

SUMMARY JUDGMENT 7thOctober & 10th December 2024 MWANGA, J. On 23rd May 2024, the plaintiff herein filed a summary suit against the defendant claiming, among other things, for payment of Tanzanian shillings TZS 10,115,840 (Says Tanzanian Shillings Ten Million One Hundred Fifteen Thousand Eight Hundred Forty) being the outstanding principal members' contributions plus accumulated penalties thereon which sum continues to accrue as long as it remains due. It is alleged that the defendant was registered as a contributing member with a Membership Certificate Registration Number 1016113. According to the law establishing the Second Plaintiff, Defendant is required each month to make its own compulsory contribution and that of its employees at the rate of 10% and 10%, respectively, making a total 1 of 20% of the (member) employee's wage. Even though Defendant is obliged in law to remit members' contributions each month, it has failed, neglected, ignored, and/or defaulted to remit the members' contributions to the Second Plaintiff for some of the months and delayed remittance in some of the months which delays attract imposition of the penalty. According to the plaintiff, that undesirable act of the Defendant of ignoring, delaying, refusing, neglecting, and/or defaulting to remit to the Second Plaintiff the members' contributions, i.e., its contributions and that of its employees, is

not only against the law but also denies its employees (the Second Plaintiff's members) to be paid their rightful pension benefits in the event of their retirement, death and/or when they leave the scheme in any other manner. It was further alleged that the Defendant, in breach of its statutory obligations, has defaulted on remittance of members' principal contribution amounting to TZS 10,115,840 (Says Tanzanian Shillings Ten Million One Hundred Fifteen Thousand Eight Hundred Forty) for the months covering various periods between July 2019 to May 2022 being the outstanding principal members' contributions; which sum continues to accrue as long as it remains due. It is the plaintiffs’ averments that, as a result of the Defendant's breach to heed to its statutory obligation to remit members' contributions 2 to the Second Plaintiff as required by the law, the Plaintiff, on numerous occasions, demanded the performance of the said statutory obligation by the Defendant on remittance of members' contributions still the Defendant has to date failed, refused and/or defaulted to heed to the Second Plaintiffs rightful demands as presented or at all. It is due to these acts of the Defendant that the plaintiff filed the present case, praying for judgment, decree, and orders against the Defendant as follows: (1) That Defendant to be ordered to pay the sum of TZS 10,115,840 (Says Tanzanian

Shillings Ten Million One Hundred Fifteen Thousand Eight Hundred Forty), being un-remitted members' contributions plus accumulated penalties thereon due and payable to Plaintiff by Defendant. (2) Defendant pays Interest on the decretal sum from July 2019, 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, June 2019 publications. (3) Interest on the decretal sum at the prescribed court rate of 7% per annum from the date of delivery of Judgment until the same shall be fully satisfied. (iv) Cost of and incidental to the filing of the suit; and 3 (4) Any other and further relief this Honourable Court shall deem fit and to grant. Upon filing a summary suit and having effected service to the defendant and substituted services via Mwananchi Newspaper of 16/07/2024, the defendant did not enter an appearance, thus lost his right under Order XXXV Rule 2(2) of the Civil Procedure Code Cap 33 R.E 2019 to apply for leave to appear and defend On 07/10/2024, when the matter was scheduled for hearing, Mr. Kenedy Kasongwa, SA for the plaintiff, informed the court that the defendant did not enter an appearance despite the effort done to serve her; they thus invited the court to enter Summary Judgment against the defendant under Order XXXV, Rule 2(2) of the CPC and section 74 A of the NSSF

Act. Since the defendant was served but did not enter an appearance, in that respect, the plaintiff is entitled to summary judgment. I, therefore, proceed to enter summary Judgment in favor of the plaintiff, and it is hereby decreed that the defendant shall pay the plaintiff the following: (a) The sum of TZS 10,115,840 (Says Tanzanian Shillings Ten Million One Hundred Fifteen Thousand Eight Hundred Forty); being un-remitted members' contributions plus accumulated penalties thereon 4 (b) Interest on the decretal sum from July 2019, when the sum accrued to the date of Judgment at an overall lending interest rate of 15% per annum as publish by the Bank of Tanzania Monthly Economic Review, June 2019 publications (c) Interest on the decretal sum at the court rate of 7% from the date of delivery of Judgment to the date of full payment (d) Costs of the suit. (e) It is so ordered.

MWANGA JUDGE. 10/12/2024 COURT: Judgment delivered at Dar es Salaam today, on 10th December 2024, in the presence of Ms. Janet Sekajingo, learned State Attorney for the plaintiff, and in the absence of the Defendant.

MWANGA

JUDGE 10/12/2024 5

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Authorities

Authorities used by the court

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

Civil Procedure Code Cap 33 R.E 2019

Legislation

Legislation referenced in the available case record.

NSSF Act

Legislation

Legislation referenced in the available case record.

Bank of Tanzania Monthly Economic Review, June 2019

Legislation

Legislation referenced in the available case record.

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