The Commercial Division of the High Court has dismissed an application filed by businessman tycoon Gordon Wavamunno seeking to halt rolling out of digital number plates to Russian firm, Joint Stock Company Global Security limited.
Through his firm, GM Tumpeco, Wavamunno had in 2023 taken government to the commercial division of the High Court, for terminating the contract it has signed with the firm to manufacture number plates in order to pave way for the digital plates.
Among other reasons, GM Tumpeco had argued that it will suffer irreparable damages because it had invested colossal sums of money in specialized equipment and a specialized workforce to execute the works for the manufacture of motor vehicle number plates. It argued that motorists will be inconvenienced because they will not be authorized to drive without valid number plates.
The firm implored court to institute an injunction and stop the entire process.
But in a ruling dated October 20, 2023, court dismissed the GM Tumpeco’s application saying that the loss that may be suffered if the application is not granted is not irreparable.
“..if the application is granted the decision will not only have security and financial implications, the general public will also be inconvenienced when Traffic and Road Safety (Registration Plates) Regulations 2022 come into force and cannot be implemented,” the ruling signed by Justice Patricia Kihigi Asiimwe, noted.
Court also ruled that it had not been satisfied about the need for an injunction saying it must keep in mind the principles of justice and fair play and should exercise its discretion [for an injunction] only if the ends of justice require it.
Saving Smart: Israel Arinaitwe on How Ugandans Can Build Wealth from Any Income LevelCourt therefore dismissed the aplication.
What ruling means
Unless GM Tumpeco appeals the ruling in the Court of Appeal and it is overturned, the firm’s number plates manufacturing business with government could be over. GM Tumpeco first entered into agreement with government to manufacture plates in August 2004. It was renewed in 2013 and was set to expire this year.
The ruling also paves the way for the smooth implementation of the digital plates which were of officially rolled out in November last year.
Government clarified that new vehicle and motorcycle owners will pay Shs714,000 for the plates while exchanging existing plates for the new digital plates will cost Shs150,000 for motor vehicles and Shs50,000 for motorcycles.
