
FORMER vice-president, Enoch Kavindele has lost a bid to run a fourth cellular mobile phone company in Zambia after the Supreme Court over-turned the earlier judgment and ruled in favour of Communications Authority of Zambia (CAZ).
Supreme Court judge Marvin Mwanamwambwa in delivering a 90 paged judgment yesterday allowed all the four grounds of appeal advanced by CAZ in its appeal following the earlier judgment passed in the Lusaka High Court against it.
Lusaka High Court judge Phillip Musonda had ruled that Vodacom Zambia Limited was lawfully granted a mobile licence and still holds the fourth national cellular mobile license for Zambia.
In the first ground, CAZ contended that the learned trial judge erred in law and facts when he held that the remedy of an injunction was available in this case and that respondents’ businesses reputation would diminish, as it had none that could have diminished.
CAZ argued that this court had in many cases held that an injunction was not appropriate when damages would be an adequate remedy.
Mr Kavindele’s lawyers from Malambo and Company argued that the High Court was on firm ground when it held that the injunction granted to the defendant was available as it restrained the appellants from opening bids on February 28,2008 to award the fourth cellular mobile phone license to other companies until the matter was disposed off.
And Mr Justice Mwanamwambwa in allowing this ground, said the lower court’s analysis of the principles governing the granting of an injunction was correct but on the facts of this case, the Supreme Court did not agree with its conclusions or application of the principles to the facts.
He said the plaintiff was a newly incorporated company and had not yet started business operations in telecommunication and not yet acquired business reputation or credit rating, which could diminish and discharged an earlier injunction, granted to Mr Kavindele.
In ground two, CAZ argued in its appeal that the lower court erred in law and facts when he held that the appellant was the cause of the delay in finalising and conclusions of the licensing process.
CAZ contended that as far as it was concerned, the court processes instituted by third parties against the defendants constituted the delay.
“On the evidence before the judge we must say that this was an erroneous finding of fact, it was not supported by any evidence. It is clear that Vodacom Zambia Limited was the cause of the delay in the finalisation of the licence.
“In our view, the learned trial judge’s findings under challenge were made upon a misapprehension of the facts, we therefore allow ground two,” he said.
On the third ground, Mr Justice Mwanamwambwa contended that the withdrawal of Vodacom International Limited was a frustrating event, which released the defendants from further performance.
He said it was clear from the evidence from the lower court as well as in this court that when Vodacom International withdrew from the licensing process, its technical know how, experiences and financial capacity went away with its withdrawal.
On that ground, CAZ had argued that the trial judge erred in law and facts in granting the decree for specific performance of the fourth national cellular mobile license for the respondents when Vodacom International had withdrew from the licensing.
And for the last appeal, CAZ indicated that Mr Justice Musonda erred in law and facts when he held that the respondents had been treated oppressively, unfairly and contrary to the spirit of the Economic Empowerment Act, and that they did not perform according to the legitimate expectations that had risen in the respondents.
Mr Justice Mwanamwambwa said that the court acknowledge the existence of the doctrine of legitimate expectation.
And after judgment, Mr Kavindele refused to comment and walked away.