The Supreme Court has given justifications for overturning the constitutional Court ruling, which nullified the 2000 Referendum Act and invalidated all government business conducted under it.
However, the seven-judge coram, upheld other decisions of the lower court.
Democratic Party president Paul Ssemogerere and his vice, MP Zachary Olum, had petitioned the constitutional Court, challenging the 2000 Referendum Act under which the referendum of 2000 was held.
However, the State appealed the ruling of the constitutional Court to the Supreme Court.
The coram upheld the lower courtâ€™s ruling that the Referendum Act contravened the Constitution, but also said it was wrong for the court to say the referendum was invalid.
The Supreme Court also ruled that the lower court should not have declared the referendum null because that declaration was untenable in law.
The coram observed that the Constitutional Court judges appeared to think that without repealing Article 269 of the constitution to remove restrictions on activities of political organisations, no free and fair elections could be held.
They said that the Constitutional Court judges also mistakenly thought that the Political Party and Organisation Act ought to have been enacted before the referendum was held.
The Supreme Court judges ruled that the challenge to the validity of the referendum was anticipatory or speculative since the referendum results had not been challenged and inquired into to determine whether it was free and fair.
Chief Justice Benjamin Odoki headed the coram that comprised justices Arthur Oder, George kanyeihamba, Alfred Karokora, James Ogoola, John Tsekooko and Joseph Mulenga.
The Supreme Court judges also said it was wrong for the constitutional Court to say that the choice of political system in the referendum was unconstitutional.
Supreme Court gives referendum ruling