No-sale restriction on imported vehicle set aside where transfer of residence benefit was not extended

A restrictive endorsement prohibiting sale of an imported vehicle for two years was found unsustainable where the import was not treated as one made under transfer of residence benefit. The analysis followed the earlier judicial view that a no-sale condition cannot be imposed without the legal basis of that benefit, because the restriction has no independent support in such circumstances. The endorsement was therefore set aside in favour of the importer.

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Issues: Whether the condition prohibiting sale of the imported vehicle for two years was sustainable when transfer of residence benefit had not been extended.

Analysis: The dispute was confined to the restrictive endorsement preventing sale of the vehicle for two years. The import was not treated as one made under the transfer of residence benefit, and the earlier judicial view relied upon held that such a no-sale condition could not be imposed where the importer had not enjoyed that benefit. In that situation, a prohibition on sale had no legal basis.

Conclusion: The no-sale restriction for two years was held to be unsustainable and was set aside in favour of the appellant.

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