The Applicability of Section 38 of The Civil Procedure Code (CPC)
The Court of Appeal of Tanzania reviewed a civil appeal involving Hassan Twaib Ngonyani and Tazama Pipeline Limited regarding the appellant's summary dismissal from employment and subsequent claims for terminal benefits. The court found that the executing court lacked jurisdiction to determine claims for subsistence allowance and repatriation costs not expressly ordered by the Conciliation Board, and upheld the High Court's decision that the appellant should refer the matter back to the Board. The appeal was ultimately dismissed, confirming the earlier rulings on jurisdiction and the satisfaction of the decree.
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The Applicability of Section 38 of The Civil Procedure Code (CPC)
The Court of Appeal of Tanzania reviewed a civil appeal involving Hassan Twaib Ngonyani and Tazama Pipeline Limited regarding the appellant's summary dismissal from employment and subsequent claims for terminal benefits. The court found that the executing court lacked jurisdiction to determine claims for subsistence allowance and repatriation costs not expressly ordered by the Conciliation Board, and upheld the High Court's decision that the appellant should refer the matter back to the Board. The appeal was ultimately dismissed, confirming the earlier rulings on jurisdiction and the satisfaction of the decree.
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IN THE COURT OF APPEAL OF TANZANIA
AT.DAR ES SALAAM
(CORAM: KWARIKO, J.A., MAIGE, J.A. And MWAMPASHL, JA.)
CIVIL APPEAL NO, 201 OF 2018
HASSAN TWAIB NGONYANI APPELLANT
VERSUS
TAZAMA PIPE LINE LIMITED ., RESPONDENT
(Appeal from the decision of the High Court of Tanzania
at Dar es salaam )
(Sheikh, J.)
dated 30" day of October, 2014
in
Civil Revision No. 40 of 2012
JUDGMENT OF THE COURT
18" February, & 2 day of March, 2022
MAIGE, J.A.:
For some time before their relation had become irreconcilable,
the appellant and the respondent were in employment relation wherein
the former was the employee and the latter the employer. It would
appear that, in the 2005 General Elections, the appellant contested for
membership of Parliament for Namtumbo Constituency and was, on
21% August, 2005, declared by the National Electoral Commission, as
one among the candidates contesting for the respective parliamentary
Scanned with CamScannerseat, On the same day, the appellant was summarily dismissed for the
reason of absence without leave. On reference to. the Conciliation
Board (“the Board”) in terms of section 40 (1) (a) of the Security of
Employment Act [Cap. 387 R.E. 2002] (“the SEA"), the summary
dismissal in question was held to be inappropriate. It was thus
reversed and substituted with an order that, the employment of the
appellant was terminated, by operation of the law, on 21% day of
‘August, 2005 when the appellant was declared a contestant for the
Namtumbo parliamentary seat. It thus decreed as follows:
"na kwa mjibu wa aya ya 6.3.4.4. ya Waraka huo mrufani
anastahili kulipwa stahili zake zote za utumishi kulingana na
Sheria za Nchi na Mkataba wa hiari unaomuhusu.”
Literally translated the afore said words mean:
"and in accordance with paragraph 6.3.4.4. of the said
Circular ( the Gircular of the Chief. ‘Secretary No. 1 of. 2000),
the appellant is entitled to be paid all his terminal benefits in
accordance with the laws of the land and the voluntary
agreement that relates to his service”.
Pursuant to the decision as aforesaid, the respondent paid the
appellant on 42" July, 2006, TZS 26,385,953.05 being his entire due
Scanned with CamScannerterminal benefits including TZS 5,030,874.00 as Repatriation benefits
and caused him to sign a document described as a discharge
certificate.
The above aside, on 3" day of March, 2008, the appellant
instituted, at the District Court of Morogoro (“the executing court”),
Miscellaneous Employment Cause No. 11 of 2008 through Form No.
CC 10 seeking to realize USD 83,750 as subsistence allowance from
21% day of August 2005 when he was terminated to 12" July, 2006
when he was paid his repatriation benefits.
In response, the respondent filed, vide Miscellaneous
Employment Cause No. 14 of 2008, objection proceedings under Order
XXI rule 57 of the Civil Procedure Code [Cap. 33 R.E. 2019] (the CPC).
She was, in the said application, calling upon the executing court to
investigate into the legality and validity of the application for execution
‘on account that, the decree had been satisfied and the appellant
signed a discharge certificate to that effect. In paragraph 4 of the
affidavit in support of the application, the respondent deposed as
follows:
Scanned with CamScannerla
"4. On 12” July, 2006 the objector did comply and
completely discharged her obligation by paying the
Respondent a total of Tshs. 26,385,953.05 to cover
the entire due terminal benefits derived as follows:
employment benefits- Tshs. 19,710,215.40; Accrued
Leave- Tshs 362,597.00; Repatriation benefits-Tshs.
5,030,874.00 and Tanzania Pipelines Pension Scheme-
Tshs 1,282,266. 65. The said Discharge Certificate is
attached hereto and marked Annexure TZM-1”
In opposing the application, the appellant filed a counter affidavit
and in paragraph 5 thereof stated as follows:
"5. That as regards the contents of paragraph 4 of the
affidavit, the respondent notes that he was paid the
amount stated, but that he was misled to sign the
referred discharge certificate”.
In its decision dated 31% August, 2008 (“the initial decision”), the
executing court, while in agreement with the respondent that, the
appellant was not justified to make a further claim after receiving TZS
26,385,953.05 and signing a discharge certificate, it struck out the
application for execution for being misconceived. Displeased, the
appellant preferred an appeal to the High Court vide Civil Appeal No.
4
Scanned with CamScanner147 of 2008 attacking the findings of the executing court on both the
effect of the Feceipt of the amount as aforesaid and striking out of the
execution proceedings for being misconceived. In its judgment
(Shangwa, 3) which shalt henceforward be referred as “the judgment
On appeal’, the High Court observed on the first issue as follows:
“In my opinion, there was nothing wrong for the Appellant
Decree holder to file an Application for execution of the
decree arising from the decision of the Conciliation board of
Morogoro for further claims in respect of his unpaid terminal
benefits to the tune of USD 83,750 which he wanted to
enforce through Miscellaneous Employment Cause No. 11 of
2008 by attachment and sale of | the Respondent's two houses
on plot No. 179 Toure Drive, Masaki, in Dar es Salaam and
on plot No. 423 Mhando Street, Masaki in Dar es salaam.
Furthermore, I am of the opinion that notwithstanding the
fact that the Appellant had signed a discharge certificate
Prepared by the respondent, yet still the choice was his to
make an Application for execution of the decree for the
Purpose of realizing his unpaid terminal benefits from the
Respondent which he dims to be USD 83,750. His
application was supposed to be heard by the District Court of
Morogoro and determined on merit.”
Scanned with CamScannerOn the second issue, the High Court observed in the first place,
that, It was wrong for the executing court to strike out the
Miscellaneous Employment Cause No. 11 of 2008 (‘the objection
proceedings”) while dealing with the Miscellaneous Employment Cause
No. 14/2008 (“the execution proceedings”) as the two proceedings
were different and distinct. In the second place, it was observed that,
the respondent being a judgment debtor, was incompetent to bring
the objection proceedings. It finally quashed the initial decision and
ordered that the execution proceedings be heard on merit.
In pursuance of the direction as aforesaid, the parties were heard
by the executing court upon the respondent filing a counter affidavit
wherein she contested the application on two grounds. First, the
decision of the Board was duly satisfied as per the discharge certificate.
Second , the amount claimed in the application was beyond the
decision of the Board. In its ruling (“the decision on execution”), the
executing court having considered the rival submissions, held that
since the issue of payment of subsistence allowance was not expressly
decided by the Board, it was a labour dispute which should have been
Scanned with CamScannerdealt with by the Board itself. In reaching to such a conclusion, the
executing court observed as follows:
"The Decision of the conciliation Board was general that the
Decree holder was entitled to be paid all terminal benefits of
the voluntary retired employee. If at all the Decree holder
found that the Judgment holder miscalculated his benefits,
the right procedure was to go back to the Conciliation Board
to present his claims and not coming to this court to make
execution of the order which was not specifically given. By
entertaining this claim will lead this court into the calculation
of payments which are mainly done by Conciliatory Board in
all cases of this kind. In other words this court has no
Jurisdiction of entertaining labour cases and if this court will
proceed to determine on retirement it will be stepping into
the shoes of Conciliatory Board which actually has the
Jurisdiction on cases of this kind.”
Being aggrieved by the decision, the appellant applied for
revision to the High Court vide Civil Revision No. 40 of 2012. In its
tuling “(the decision on revision”), the High Court (Sheikh, J.) was
Quided by one issue namely; whether in the absence ofa Specific order
by the Conciliation Board an executing court has the jurisdiction (a)
to determine whether a decree holder is entitled to repatriation costs
Scanned with CamScannerand subsistence allowance and (b) to compute the amount payable as
subsistence allowance and repatriation costs.
Having addressed the issue, the High Court Judge concurred with
the executing magistrate that, since it was not express in the decision
of the Board that, the appellant was entitled subsistence allowance
and/ or repatriation costs, how much and to what extent, the claim
sought did not fall within the jurisdiction of an executing court. It thus
dismissed the application and remarked that, the appellant was at
liberty to refer the matter to the Board.
Once again aggrieved, the appellant has instituted this appeal
faulting the decision of the High Court on revision on the following
grounds. One, in holding that the executing court has no power to
investigate on questions arising from execution, discharge and
satisfaction of the decree. Two, in recognizing the alleged satisfaction
of the decree despite not being certified by the executing court. Three,
in holding that the calculation of the amount due to the appellant
should be submitted to the Board notwithstanding that it was defunct:
and in any case, it had already concluded the matter. Four, in not
considering the fact that at the time when the Board was making its
8
Scanned with CamScannerdecision
/ the claims as to subsistence allowance was not due. Five, in
Not holdi .
ding that the executing court in its decision on execution
de; ‘
Parted from the direction of the High Court in the decision on appeal.
When the appeal was called on for hearing before us, the
appellant and respondent were represented by Messrs. Audax Vedasto
Kahendaguza and Cornelius Kariwa, learned advocates, respectively.
As the law requires, both counsel had, before the hearing, filed written
submissions. Each of the counsel in his oral address, adopted his
submissions as part of his oral arguments. We sincerely appreciate for
the counsel's submissions which have been instrumental in composing
this judgment.
We shall start our discussion with the last ground which seeks to
criticize the High Court in not holding that, the decision of the
executing court dismissing the appeal for want of jurisdiction was
contradictory in effect with the decision of the High Court on appeal.
Submitting on this issue, Mr. Kahendaguza began by drawing the
attention of the Court that, the issue of jurisdiction of the executing
court to determine whether the appellant was to be paid subsistence
allowance, was decided in the initial decision in favour of the
9
Scanned with CamScannerrespondent. In the decision on appeal, he submitted further, the High
Court held that the issue was within the jurisdiction of the executing
court and directed the same to hear and determine the application
‘on merit. He submitted therefore that, in reopening the issue and
dismissing the application for execution on the same ground of
jurisdiction, the executing court committed a fatal error which should
have not been confirmed by the same court on revision as the High
Court was already functus officio. There was no comment from Mr.
Kariwa on this issue.
We have taken time to scrutinize the relevant decisions and
proceedings and we do not agree with Mr. Kahendaguza that, the
concurrent decisions of the executing court and the High Court on
revision are in any way contradictory to the decision of the High Court
on appeal. As we have noted elsewhere in this judgment, the
executing court did not, in the initial decision, resolve the issue of
jurisdiction of the executing court to enforce the decision of the Board.
It only addressed the issue of whether the appellant having received
what was termed as the entire terminal benefits and signed the
discharge certificate, was not barred from commencing execution
10
Scanned with CamScannerProceedings. The executing court established at page 50 of the record
as follows:
"Given the fact that he plainly submitted not to have any
problem with the computation in the Discharge Certificate, I
partly agree with him that section 123 of the Evidence Act
CAP. 6 R.E. 2002 is not applicable but on the other hand, I
also do partly agree with the Objector that there is no
Justification as to why the Respondent should be allowed to
make further claims. What he was paid was employment
benefits which was in conformity to the decision of the
Conciliation Board”.
The decision of the High Court on appeal as we have already
noted earlier on, was based on two issues namely; One, whether upon
receipt of the terminal benefits and signing a discharge certificate, the
appellant was allowed to commence an application for execution. Two,
whether the objection proceedings were properly before the executing
court. The reversal of the finding that the application for execution was
misconceived, was based on the proposition that, the appellant was
not barred from filing an application for execution for mere reason that
he had received what was termed as the entire terminal benefits and
Scanned with CamScannersigned the discharge certificate. In view of the foregoing discussion
therefore, the fifth ground has no merit.
We shall now direct our mind on the second ground as to
recognition of satisfaction of a decree which was not certified by the
executing court. Mr. Kahendaguza's contention on this issue is that;
since the payment of the terminal benefits by the respondent reflected
in the certificate of discharge was made out of court, it was wrong for
the High Court to recognize it without complying with the mandatory
requirement of Order XXI rules (1), (2) and (3) of the CPC. He
submitted further that, since the executing court has exclusive
jurisdiction under Order XXI rule (3) to certify the same, it was wrong
for the High Court to direct that the issue be referred to the Board. In
any event, he submitted, the Board having made a conclusive decision,
was functus officio to deal with the same.
On his part, Mr. Kariwa urged the Court to dismiss this ground
for the reason of being extraneous the decision of the High Court on
revision. The basis of the decision of the High Court, he submitted,
was not that the decree had been satisfied but that the claim was not
in the decree. We entirely agree with him because the application for
12
Scanned with CamScannerexecution, in our careful reading, does not suggest that the executing
court recognized the alleged satisfaction of the decree by the Board.
Quite apart, the executing court declined to entertain the application
on merit for want of jurisdiction. In our considered view therefore, the
second ground of appeal is misplaced. It is thus dismissed.
We now proceed with the 1%, 3% and 4 grounds of appeal which
we shall consider them together under the proposition that, the
executing court had no jurisdiction to entertain the application. Mr.
Kahendaguza in the first place associated the jurisdiction of the
executing court with section 38(1) of the CPC which bars questions
relating to execution, discharge or satisfaction of the decree from being
dealt with by a separate suit and confers exclusive jurisdiction thereon
to the executing court. He submitted therefore that, since whether the
claim under discussion was covered by the decree is a question which
relates to execution, discharge and satisfaction of the decree, it was
within the parameters of the respective provision and as such under
subsection (2) of section 38 of the CPC, the executing court should
have treated the execution proceedings as a suit and receive evidence
if it was necessary in giving effect to the decree.
Scanned with CamScanner=>
It was further submitted for the appellant that, since the nature
‘of the claim as provided for under section of 59 of the repealed
Employment Act [Cap. 366 R.E. 2002] is such that it could not be
known until the judgment debtor paid repatriation costs, it was wrong
for the High Court to hold that, the executing court had no jurisdiction
to make computation of the same. The Board, he submitted further,
having made a final and conclusive decision that the appellant was
entitled of all terminal benefits, it was functus officio to recompose
itself and address the computation of subsistence allowance.
Submitting in refutation, Mr. Kariwa contended in the first place
that, section 38 of the CPC was inapplicable. In his view, the
applicability of the said provision is subject to existence of objection
as to limitation and jurisdiction. He submitted therefore that, since the
law as it stood during that time excluded jurisdiction of ordinary courts
in causes of action founded on labour complaints, there was no
material errors on the part of the executing court.
On whether the matter could be remitted to the Board which was
already defunct, it was his submission that, by the express provision
Scanned with CamScannerployment and Labour Relations Act [Act No. 6 of 2004] which
e been done by the Board
of the Emy
is now in force (the ELRA), what would have
can now be done by the Commissioner For Mediation and Arbitration
(the CMA) which is the successor of the Board. He did not agree with
the counsel for the appellant that, the same is functus officio since the
issue involved is a mere correction of clerical errors.
On whether the appellant was covered by the provision of section
59 of the repealed Employment Act, Mr. Kariwa submitted that the said
provision applies in normal incidences of termination and not the
instant one. He prayed therefore that, the appeal be dismissed with
costs.
We have given the rival submissions on this issue due consideration
and it is appropriate to consider who is right. Before doing so, a brief
exposition of the laws which governed the matter is necessary. As we
noted above, the dispute at hand emanated from a decision by the
respondent to summarily dismiss the appellant for absence without
leave. Under section 20 of the SEA, an employer could only summarily
dismiss an employee on account of breaches of Disciplinary Code and
subject to the conditions set out in the Act. A person aggrieved from
15
Scanned with CamScannery
such decision, would refer the matter to the Board under section 24(1)
of the SEA and on further dissatisfaction, to the Minister under section
27 of the same Act. The decision of the Board or the Minister was final
and conclusive, binding to the parties to the reference and could be
enforced in any court of competent jurisdiction as if it were a decree.
Subsection (2) of section 28 provided as follows:
(2) —_Inaddition to its powers to execute any decision which
requires the refund of any wages deducted or,
expressly or by implication, the payment of any
sum to an employee where a dismissal is
ordered to take effect as termination of
employment, a court in which it is sought to enforce
a decision of the Minster or a Board may make and
enforce such orders as are necessary for specific
performance of any decision for the reengagement or
re-instatement of any employee( notwithstanding that
the court would not have power apart from this
subsection to make or enforce such orders and may
award damages for failure of the employee to carry
out any such decision as if he has dismissed the
employee concerned wrongfully, and, if Part IV of this
Act is in operation in relation to the employee
concerned, such damages shall include statutory
Scanned with CamScanner—~s
compensation provided for in that Part). (Emphasis
ours)
Back to the fact in issue, the decision of the executing court as
confirmed by the High Court on revision was based on the proposition
that, the amount of subsistence allowance sought to be realized was
not expressly decreed in the decision of the Board. In principle, we
agree with Mr. Kariwa that, an executing court has no jurisdiction to
execute what is beyond the decree. We also agree with him that, the
claim as to subsistence allowance was not express in the decision of
the Board. What was express in the said decision was that, the
appellant should be paid all his terminal benefits in accordance with
the law and voluntary agreement relevant to his services. What
amounts to the said terminal benefits, the decision of the Board was
silent, That being a case, we do not think that, the High Court Judge
was right in holding that the application for execution was beyond the
decree for the mere reason that, the claim was not express. We have
three reasons to rationalize our decision.
First, under section 28 (2) of the SEA, the power of the
executing court to execute the payment of money where, like in the
7
Scanned with CamScanner4
instant case, a dismissal is ordered to take effect as termination of
employment, is not limited to an express decision. It extends to
decisions which require such payment by implication. The Board, in
id all his terminal benefits
its decision, decreed that the appellant be pai
g to his
according to the laws and voluntary agreement relatin'
employment. It did not specify items of terminal benefits. Obviously
therefore, what should be paid to the appellant as terminal benefits
.d voluntary agreement. To give effect to the
was implied by law ant
ue the decree in line
decree, the executing court was bound to constr
with the employment laws and voluntary agreement and in so doing it
could not be said to have gone beyond the terms of the decree.
Second, under section 38(1) of the CPC, Mr. Kahendaguza is
correct, the executing court enjoys exclusive jurisdiction to deal with
any questions relating to execution, discharge and satisfaction of the
decree. Where the resolution of any of the questions requires
ascertainment of controversial factual issues, the executing court is
entitled, under section 38(2) of the CPC even to convert execution
proceedings into a suit. In our view, therefore, in so long as the claim
is captured by the decree, whether expressly or constructively, it is
Scanned with CamScannerwithin the power of the executing court to compute the same. Thus,
in Karata Ernest and Others V. The Attorney General, Civil
Revision No. 10 of 2010 (unreported), this Court while considering the
Provision of section 38(1) of the CPC, observed as follows:
* Although ordinarily the trial court has a duty to determine
the quantum which the judgment debtor is bound to pay
under the decree, where it has left out that question open
for consideration subsequently, the executing court has
Jurisdiction to determine the quantum under this section on
the issue.”
In National Insurance Corporation V. Maligisa Manyangu and
24 Others, Civil Revision No. 14 of 2017 (unreported), the High Court
of Tanzania, Dar es salaam District Registry (Masabo, }) dealing with
a revision arising from, like in this matter, enforcement of a decision
of the Board under the repealed laws, made the following statement
which sounds persuasive to us:
"Iam also of a settled view that the learned magistrate was
Justified in ordering the Applicant to provide a breakdown of
what has been paid so far so as to ascertain the claims that
have been paid and those which remain due. I have noted
that, instead of providing the breakdown, the Applicant
defied the orders of court and has today failed/ neglected to
provide the breakdown. From the events pertaining to this
19
Scanned with CamScannercase, provision of the breakdown is also imperative in
preventing any risk of double payment, thus it is in fact, in
the interest of both parties as well as the court that ‘the claim
paid so far be known,”
We do not agree with Mr. Kariwa that, by the reason of the
nature of the decision of the Board, it cannot fall under section 59 of
the Employment Act. For, under section 26(1) (b) of the SEA, once the
Board or the Minister orders that a dismissal order takes effect as
termination, the employee shall, for the purpose of terminal benefits,
be deemed to have been terminated by payment of wages in lieu of
notice. It provides as follows:
"(b) that summary dismissal or proposed summary
dismissal of an employee shall have effect as
termination of employment, the employer shall be
deemed to have terminated the employment of the
employee otherwise than by summary dismissal on
the date of dismissal or suspension (ot, if the
employee was not suspended, on the day on which
the employer informed the employee that he proposed
to dismiss him summarily), and the employer shall
pay the employee such sums as would have
been due had the employment been terminated
by payment of wages in lieu of notice and any
20
Scanned with CamScannerother payments due on the termination of
employment in such a case, less any half pay paid
during a period of suspension. “(Emphasis is ours)
Third, from the application and counter affidavit in opposition to
the application, parties were of consensus that, the terminal benefits
awarded in the decision of the Board included repatriation costs. That
is why, the amount of terminal benefits admitted to have been received
by the appellant includes repatriation costs. Section 59(3) of the
repealed Employment Act was very clear that expenses of repatriation
includes:
"(b) subsistence expenses or rations during the period, if
any, between the date of termination of the contract
and the date of repatriation”.
Since this kind of payment accrues subsequent to the decision
and more particularly after the terminated employee is repatriated, it
is a matter of common sense that it could not be express in the
decision. It being part of the terminal benefits under the law, it was
obviously implied in the decision of the Board.
In the final result and for the foregoing reasons therefore, we find
the appeal with merit and we allow it. We accordingly quash and set
21
Scanned with CamScanneraside both the decision of the High Court on revision and the decision
of the executing court on execution. Since under item 8(1) of the Third
Schedule to the ELRA read together with section 103 (1) thereof, any
reference concerning a summary dismissal under the repealed laws
should be dealt with as if the same had not been repealed, we remit
the file to the executing court for determination of the application on
merit. It being employment matter, we make no order as to costs.
DATED at DAR ES SALAAM this 1% day of March, 2022.
M. A KWARIKO
JUSTICE OF APPEAL
I, J. MAIGE
JUSTICE OF APPEAL
A. M. MWAMPASHI
JUSTICE OF APPEAL
The Judgment delivered this 2"¢ day of March, 2022 in the presence of
M/s Glory Venance holding brief Audax Kahendaguza Vedasto, learned
counsel for the appellant and Ms. Glory Venance, learned counsel for
RT OF APPEAL
22