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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

Arjun Nair's fresh start application was admitted on 1 June. During the moratorium, he plans a trip abroad for a family function. Under the Code, what must he do?

Arjun must obtain the Adjudicating Authority's permission before travelling outside India. During the fresh start moratorium the debtor may not leave India without that permission, and neither creditor consent nor later intimation to the resolution professional satisfies the requirement.

  1. ATravel freely, since the restriction applies only to bankrupts
  2. BInform the resolution professional after returning
  3. CObtain permission from the Adjudicating Authority before travelling outside IndiaCorrect
  4. DObtain consent from a majority of his creditors

Explanation

During the moratorium the debtor must not travel outside India except with the permission of the Adjudicating Authority. Creditor consent or after-the-fact intimation to the professional is not what the Code requires.

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