# In the matter of TARUN ALLOYS LIMITED

> NCLT judgment dated 2026-03-24. Citation: TCN-2026-NCLT-00246. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Mar 2026
- **Citation:** TCN-2026-NCLT-00246
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/tarun-alloys-limited-d6585b32

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Ashok Jindal (Financial Creditor/Petitioner) against Tarun Alloys Limited (Corporate Debtor/Respondent) for initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

Ashok Jindal, the Financial Creditor, filed an application under Section 7 of the IBC against Tarun Alloys Limited, the Corporate Debtor.

Tarun Alloys Limited availed credit facilities from Canara Bank, which became irregular.

The Corporate Debtor approached the Financial Creditor for financial assistance to comply with the terms of an OTS with Canara Bank.

The Financial Creditor issued five cheques totaling Rs. 50,00,000/- to Canara Bank on behalf of the Corporate Debtor, which were encashed.

A Loan Agreement dated 10.06.2021 was executed between the parties, stipulating repayment of Rs. 50,00,000/- with 18% interest.

The Corporate Debtor failed to discharge its liability, leading to a demand notice for Rs. 1,21,09,516/-.

…

## Issues and analysis

### Issue 1: Whether the amount paid by the Financial Creditor to Canara Bank on behalf of the Corporate Debtor …

**Ratio:** The expression disbursal Section 5(8) of the Code does not necessarily require physical

…

**Reasoning:** The Corporate Debtor approached the Financial Creditor for financial assistance to

…

**Interpretation:** The Adjudicating Authority interpreted Section 5(8) of the IBC to include

…

**Application:** The Adjudicating Authority applied this interpretation to the facts of the case

…

## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Appellants:** Ashok J…
- **Respondents:** Tarun Alloys…
- **Other parties:** Akarsh Ka…
- **Advocates:** Milan Sing…; Karan Va…

## Timeline

- **1995-12-22 — Incorporati…**: Tarun Alloys Limited incorporated…
- **2021-02-15 — Cheque Is…**: Financial Creditor issued five cheques dated 15.02.2021 totalling Rs. 50,00,000/- in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-jaipur/tarun-alloys-limited-d6585b32