# M/s. Geeta Sugars vs. M/s. The Indian Sugars and Refiners Limited

> NCLAT judgment dated 24 Apr 2026. Citation: TCN-2026-NCLAT-00146. M/s. Geeta Sugars (Operational Creditor/Appellant) advanced Rs. 21,08,835 to M/s. The Indian…

- **Court:** NCLAT
- **Order date:** 24 Apr 2026
- **Citation:** TCN-2026-NCLAT-00146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-geeta-sugars-vs-ms-the-indian-sugars-and-refiners-limited-a025aef8

## Summary

### Background

M/s. Geeta Sugars (Operational Creditor/Appellant) advanced Rs. 21,08,835 to M/s. The Indian Sugars and Refiners Limited (Corporate Debtor/Respondent) for the supply of 880 metric tonnes of sugar via an oral purchase order on 21.04.2015. The Corporate Debtor failed to supply the sugar, leading to a refund request from the Operational Creditor on 13.05.2015. The Corporate Debtor initially acknowledged the debt on 15.05.2015, and negotiations ensued, leading to a revived business relationship and an assurance to clear the backlog by January 2016. However, the Corporate Debtor again failed to supply, and the business halted by 23.04.2016 due to financial issues. The Operational Creditor issued a demand notice under Section 8 of the I&B Code on 20.06.2018, which the

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## Facts

M/s. Geeta Sugars (Appellant/Operational Creditor) is a proprietorship firm engaged in wholesale sugar distribution.

M/s. The Indian Sugars and Refiners Limited (Respondent/Corporate Debtor) is a sugar manufacturer.

On 21.04.2015, an oral purchase order was placed by M/s. Geeta Sugars for 880 metric tonnes of sugar, and an advance of Rs. 21,08,835 was paid.

The Corporate Debtor failed to supply the sugar.

On 13.05.2015, the Operational Creditor requested a refund of the advance amount.

On 15.05.2015, the Corporate Debtor responded, allegedly acknowledging the debt and liability.

Negotiations led to a revival of business relations, and the Corporate Debtor promised to supply the pending 880 metric tonnes by January 2016.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor's response on 15.05.2015, admitting inability to supply sugar, …

**Ratio:** A response acknowledging inability to supply, coupled with subsequent negotiations and

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**Reasoning:** The document shows a series of negotiations and even a revival of business relations

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**Interpretation:** The "admission" was not a clear, undisputed acceptance of a debt for

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**Application:** Given the ongoing negotiations, the alleged settlement terms, and the eventual

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** M/s. Geeta…
- **Respondents:** M/s. The Indian…
- **Other parties:** Insolvency and…; Operationa…; +7 more

## Timeline

- **2015-04-21 — Oral Purchase Order and…**: M/s. Geeta Sugars placed an oral purchase order for 880 metric tonnes of sugar with M/s.…
- **2015-05-13 — Request for…**: M/s. Geeta Sugars requested a refund of the advance amount from M/s. The Indian Sugars…

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