Court saves Abood buses from being auctioned 

TANZANIA: THE Court of Appeal has saved two buses owned by Abood Bus Services from being sold to implement a court decree for payment of about 5m/- to the company’s former employee, Mashaka Lumato.

Justices Ferdinand Wambali, Issa Maige and Agnes Mgeyekwa granted an application lodged by the Company, the applicant, for stay of execution of the High Court decree regarding the payments in question.

“We grant the application and order stay of execution of judgment and decree of the High Court (Labour Division), pending the final determination of the appeal,” they said.

The justices pointed out, however, that the order was conditional upon the applicant depositing a bank guarantee of 5,727,305/08 as security for due performance of the decree in the Court within sixty (60) days from the date of delivery of the ruling.

“(Such) guarantee shall remain in force until hearing and determination of the intended appeal. In default, the order of stay shall lapse automatically,” they said.

Before reaching into such a decision, the justices had to determine whether the applicant cumulatively complied with the conditions set out under rule 11 (5) (a) and (b) of the Court of Appeal Rules.

After considering the materials in the record of the application placed before the Court, the justices were satisfied that, the application was lodged within the prescribed time in terms of rule 11 (4) of the Rules.

Moreso, they were also satisfied that in view of amount involved and the intended selling of two attached buses with registration Nos. T814 and T816 DXJ, the applicant’s properties are worthier compared to the respondent’s awarded amount of 5,727,305/08.

“Therefore, substantial loss may be suffered by the applicant if stay of execution is not granted,” the justices said.

On the other hand, they were satisfied that, there was a firm undertaking by the applicant to furnish security for the due performance of the decree if the order of stay is granted.

Facts show that Mashaka Lumato, the respondent, was an employee of the applicant from March, 2000 until July 31, 2020 when his employment was terminated.

Aggrieved by the said termination, on August 5, 2020, the respondent referred the matter to the Commission for Mediation and Arbitration (CMA) the applicant and the proceeded into a full trial.

The respondent alleged constructive termination and demanded payment of 42,267,690/= as compensation and other terminal benefits.

In defence, the applicant denied the respondent’s claim on the ground that there was no employment relation between them.

Having heard the parties and considered the evidence, the CMA found that the respondent was unfairly terminated from his employment.

Therefore, it issued an award dated 26th August, 2021 by which the applicant was ordered to pay the respondent 900,000.00 as his terminal benefits being sixty days’ salary and one month’s salary in lieu of leave.

Aggrieved by the CMA’s award, the applicant moved the High Court, Labour Division to revise the same. Upon hearing the parties, the High Court on October 26, 2020 upheld the decision of the CMA that there was unfair termination.

However, it varied the CMA’s award by ordering the applicant to pay the respondent compensation of twelve (12) months’ salaries at the tune of 5,000,092/31, annual leave at the tune of 300,000/= and severance payments at the tune of 807,692/31.