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

While his fresh start application is under moratorium, Arjun, a street vendor, wants to travel abroad to attend a relative's wedding. Which statement is correct?

Arjun cannot travel outside India during the moratorium unless the Adjudicating Authority grants permission. Informing business partners or obtaining the resolution professional's consent does not substitute for that permission, because the restriction is placed on the debtor by the Code itself.

  1. AHe may travel freely since the moratorium restricts only asset transfers
  2. BHe may travel only after informing his business partners
  3. CHe may not travel outside India except with the permission of the Adjudicating AuthorityCorrect
  4. DHe may travel with the written consent of the resolution professional alone

Explanation

One of the debtor's restrictions in the moratorium is that he must not travel outside India except with the permission of the Adjudicating Authority. Consent of the resolution professional is not the prescribed route, and informing partners is a separate duty.

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