The High Court’s Dar es Salaam Sub-Registry has mandated the Registered Trustees of Kampala University to remit over 4 billion Tanzanian Shillings (TZS) to the National Social Security Fund (NSSF). This payment addresses outstanding statutory contributions owed for members between November 2018 and November 2023.
The directive, issued by Judge Wilfred Ndyasobera on May 17, 2024, follows a settlement agreement between the involved parties outlining the payment schedule. The court has instructed Kampala University to complete the payment within 21 months from the ruling date.
“The defendant shall pay the plaintiff a total sum of 4,015,637,076.08 TZS in outstanding statutory contributions. The sum shall be remitted in monthly instalments of 200 million TZS over the period of 21 months, starting from the execution of the settlement deed,” Judge Ndyasobera decreed.
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The NSSF brought a civil case against Kampala University via a summary suit, seeking arrears for the statutory monthly social security contributions for its employees who are NSSF members.
On August 14, 2023, the court permitted the defendant to appear and contest the suit, with a directive to file a written defense statement within 21 days of the ruling.
In their defense, the defendants, in a written statement filed on August 31, 2023, requested the court to dismiss the plaintiff’s suit entirely, citing a lack of merit.
However, during the court proceedings, the defendant expressed a willingness to settle the matter amicably outside of court.
As a result, the defendant sent a commitment letter to the plaintiff, proposing to pay the outstanding arrears in 21 monthly installments of 200 million TZS each.
Consequently, the parties mutually agreed to settle the dispute according to these terms and conditions and wished to record the settlement as a court decree.
The agreement stipulated that once the settlement deed was filed in court, it would have the same effect as a court-issued decree and could be executed in the same manner as any other decree.
Additionally, it was agreed that if there was any default on the terms of the settlement deed, the deed would be enforceable as a court decree, and the standard default clause would apply.
Source: Daily News
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