The Malawi Communication Regulatory Authority (MACRA) revoked the licence after G-Mobile's failure to beat several deadlines set for the company to roll out.
The High Court judge in Zomba found the decision by MACRA as unconstitutional.
"A decision of a public authority may be quashed where the authority acted without jurisdiction, or exceeded its jurisdiction or failed to comply with rules of natural justice where such rules are applicable," said Justice Godfrey Mwase.
He said MACRA's decision to revoke the licence on 20 September 2010 was ultra vires, unreasonable and invalid and must be quashed but said they can impose fresh penalty as long as they are within the law.
MACRA PR officer Zadziko Mankhambo announced on Monday, 20 September 2010 that it has revoked the operation licence it had given to G-Mobile.
MACRA said the company has been given a number of deadlines which they failed to beat - including one set for 20 September 2010.
"When we noted that there is nothing in terms of operation we had no choice but to revoke the licence because we have the mandate according to the powers vested on us," Mankhambo told Biz Community at the time.
MACRA at first imposed a US$6.95 million penalty on 20 June 2010 after G-Mobile failed to roll out on 20 March 2010.
The ruling by the High Court was in agreement with submissions by Lawyer for G-Mobile Edwin Banda who told the court that MACRA's decision was beyond its legal power.
"... [MACRA] had no powers to revoke the licence or impose revocation as a condition upon which the licence could be granted," he said.
Before the ruling, MACRA Lawyer Kalekeni Kaphale counter-argued that the G-Mobile challenge in court for a judicial review on the matter be thrown out because it delayed in lodging it.
"... Applications for the judicial review were supposed to be lodged within three months from the time the decision was made, which was not the case," he argued.
However, this was also dismissed by the court.
