Case Note & Summary
The petitioner, Anurag Gupta, a personal guarantor of a company under liquidation, challenged an order of the Debt Recovery Tribunal (DRT) refusing him permission to travel abroad from 09.06.2022 to 17.06.2022 to attend his sister-in-law's marriage. The DRT had rejected his application citing pending recovery proceedings under the Insolvency and Bankruptcy Code, 2016. The petitioner argued that the refusal infringed his right to personal liberty under Article 21 of the Constitution of India, which includes the right to travel abroad. He offered to furnish security and abide by conditions. The court examined the scope of Article 21 and held that the right to travel abroad is an integral part of personal liberty. It noted that the DRT's order was arbitrary as it did not consider the petitioner's offer of security and the limited duration of travel. The court allowed the petition, set aside the DRT's order, and permitted the petitioner to travel abroad subject to conditions, including furnishing a bank guarantee and undertaking to return. The judgment emphasized that while reasonable restrictions can be imposed, an absolute bar on travel violates Article 21.
Headnote
A) Constitutional Law - Right to Travel Abroad - Article 21 of the Constitution of India - Personal Liberty - The court considered whether the right to travel abroad is part of personal liberty under Article 21. Held that the right to travel abroad is an integral part of personal liberty under Article 21, and refusal to grant permission to travel abroad without reasonable restrictions infringes Article 21. (Paras 2, 10-15) B) Debt Recovery - Travel Permission - Insolvency and Bankruptcy Code, 2016 - Sections 60, 96 - The Debt Recovery Tribunal refused permission to the petitioner, a personal guarantor, to travel abroad for his sister-in-law's marriage. The court held that the DRT's order was arbitrary and violated Article 21, as the petitioner had offered sufficient security and the travel was for a short duration. (Paras 3, 16-20)
Issue of Consideration
Whether the expression 'personal liberty' under Article 21 of the Constitution of India includes the right to travel abroad, and whether refusal to grant permission to travel abroad results in infringement of Article 21
Final Decision
The court allowed the writ petition, set aside the order of the Debt Recovery Tribunal, and permitted the petitioner to travel abroad from 09.06.2022 to 17.06.2022 subject to conditions including furnishing a bank guarantee of Rs. 25 lakhs and an undertaking to return.
Law Points
- Right to travel abroad is part of personal liberty under Article 21 of the Constitution of India
- Debt Recovery Tribunal cannot refuse permission to travel abroad solely on ground of pending recovery proceedings
- Reasonable restrictions can be imposed but not absolute bar
