NCLT Rejects Bankrupt’s Foreign Travel Plea Over Non-Return Risk

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  • Last Updated on 25 February, 2026

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NCLT denies travel abroad to bankrupt

Case Details: Sunil Surendrabhai Kakkad vs. Samir Ganeshbhai Marathe - [2026] 183 taxmann.com 461 (NCLT-Ahmedabad)

Judiciary and Counsel Details

  • Mrs Chitra Hankare, Judicial Member & Dr Velamur G. Venkata Chalapathy, Technical Member
  • Saurabh Soparkar, Sr. Adv. & Mohit Gupta, Adv. for the Applicant.
  • Nipun Singhavi, Ms Nalini Lodha & Rahul Bhavasar, Advs. for the Respondent.

Facts of the Case

In the present case, the applicant was declared bankrupt and was directed to submit his statement of financial position to the bankruptcy trustee in the prescribed form. He was also restrained from travelling abroad without prior permission of the Adjudicating Authority. The applicant filed an application seeking permission to travel to the UAE for exploring business opportunities.

Further, the Committee of Creditors was of the view that there was a high risk of non return, considering the applicant’s exposure of over Rs. 2,500 crores, coupled with minimal income and negligible realisable assets.

It was unanimously decided not to permit the applicant to travel abroad in view of the substantial debt exposure and negligible net worth. It was also noted that the applicant had not fully complied with the requirement of submitting complete statements of his financial position.

Upon verification, the process relating to the bankrupt’s assets and liabilities remained incomplete. Certain financial records, including bank statements and confirmations, were still pending submission and verification. The regular presence of the bankrupt was considered essential to facilitate examination and cooperation as mandated under sections 132, 133 and 138 of the Insolvency and Bankruptcy Code, 2016.

NCLT Held

The National Company Law Tribunal observed that the bankruptcy process is time-bound and cannot be extended beyond the prescribed limits. Therefore, the applicant’s presence was necessary for further inquiry and day to day progress of the proceedings. The Tribunal noted that if the applicant remained unavailable for more than fifteen days in a month, it would be difficult to continue the process smoothly within the statutory timelines.

The Tribunal further observed that the applicant had not provided his residential address in the UAE.

Accordingly, the application seeking permission to travel abroad was rejected.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied