Kata v Uganda Export Promotion Board (Civil Suit 742 of 2020)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The High Court held that an employer who fails to remit an employee's NSSF contributions as required under the NSSF Act Cap 222 sections 11 and 12 breaches its statutory duty. The employee is entitled to recover the unremitted principal and accrued statutory interest. The court also addressed procedural matters, holding that Order 9 rule 8 interlocutory judgments are restricted to claims for pecuniary damages only; where declarations are sought, the proper procedure is to set the suit down for ex parte hearing under Order 9 rules 10 and 11.

Outcome

Judgment entered for the plaintiff with orders for payment of outstanding NSSF contributions, accrued interest, general damages, and costs

Facts

The plaintiff was employed by the defendant from 2001 to 2014. Upon retirement in 2014 and after initiating the process to withdraw her NSSF benefits in 2015, she was paid UGX 39,150,153 in 2016. She subsequently discovered that this principal sum had been remitted late by the defendant (only in 2016), resulting in accrued interest of UGX 32,319,990 which was never paid. An NSSF compliance audit further established that the defendant had failed to remit any contributions for the period July 2013 to March 2014, comprising principal of UGX 11,475,000 and accrued interest of UGX 7,151,476. The total outstanding amount was UGX 50,946,465. Despite the plaintiff's requests, the defendant failed to remit or pay these sums. The defendant was served with the plaint and summons but did not file a defence within the prescribed time. A defence filed five months later without leave was struck out. An interlocutory judgment initially entered by the Registrar was found to have been entered in error, and the matter proceeded ex parte.

Issues

1. Whether the defendant breached its statutory obligation to remit the plaintiff's monthly savings and contributions to NSSF?
2. Whether the plaintiff is entitled to the remedies sought?

Orders

• The defendant acted in breach of its statutory duty under the NSSF Act Cap 222 when it failed to remit the plaintiff's savings and contributions to NSSF.
• The plaintiff is entitled to UGX 50,946,465 being the outstanding principal and accrued interest.
• The defendant is ordered to remit UGX 50,946,465 to NSSF in favour of the plaintiff.
• Interest awarded on UGX 50,946,465 at 10% per annum from date of filing suit until payment in full.
• General damages of UGX 15,000,000 awarded to the plaintiff.
• Interest of 6% per annum awarded on general damages from date of judgment until payment in full.
• Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Legislation cited (11)

• National Social Security Fund Act Cap 222 s.6(1)
• National Social Security Fund Act Cap 222 s.11
• National Social Security Fund Act Cap 222 s.12(1)
• Civil Procedure Rules Order 9 rule 8
• Civil Procedure Rules Order 9 rule 10
• Civil Procedure Rules Order 9 rule 11
• Evidence Act Cap 6 s.101
• Civil Procedure Act Cap 71 s.26(2)
• Civil Procedure Act Cap 71 s.27
• Constitution of Uganda Article 126(2)(b)
• Constitution of Uganda Article 139(1)

Cases cited (6)

• Dembe Trading Enterprises Limited v Uganda Confidential Ltd & Another (HCCS No. 0612 of 2006)
• Hajji Asumani Mutekanga v Equator Growers (U) Limited (SCCA No. 7 of 1995)
• A. Nsubuga v P. N. Kavuma (1978) HCB 307
• Ecobank Uganda Limited v LB Construction & Others (HCCS No. 574 of 2012)
• Musisi Edward v Babihuga Hilda (2007) HCB 84
• Hajji Asumani Mutekanga v Equator Growers (U) Limited (SCCA No. 7 of 1995)

The original judgment as reported. Read the original PDF before relying on any passage.