# In the matter of G S Oils Limited CP(IB) No. 155-9-HDB-2021

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00127. The case involves a petition filed by Jai Corp Ltd., the Operational Creditor, against G.S.…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00127
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/g-s-oils-limited-cpib-no-155-9-hdb-2021-e4738230

## Summary

### Background

The case involves a petition filed by Jai Corp Ltd., the Operational Creditor, against G.S. Oils Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claims that the Corporate Debtor defaulted on a payment of Rs. 1,85,47,108, which includes a principal amount of Rs. 75,28,240 and interest of Rs. 1,10,18,868.32 as of April 15, 2021. The Operational Creditor had supplied PP bags to the Corporate Debtor between October 2011 and February 2013. The Corporate Debtor acknowledged the debt in a letter dated November 10, 2020, and requested time to release the amount, also seeking a remission in the interest amount. The Operational Creditor offered a one-time remission of Rs. 25,00,000 in the interest if the Corporate

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## Facts

Jai Corp Ltd., the Operational Creditor, filed a petition against G.S. Oils Ltd., the Corporate Debtor, claiming a default of Rs. 1,85,47,108.32, including principal and interest. The debt arose from the supply of PP bags by Jai Corp to G.S. Oils between October 2011 and February 2013. Jai Corp issued a letter on 04.11.2020 requesting payment of Rs. 1,70,13,822. G.S. Oils acknowledged the debt on 10.11.2020 and requested more time and a remission of Rs. 50,00,000 in interest. Jai Corp offered a remission of Rs. 25,00,000 if G.S. Oils paid Rs. 1,45,13,822 within 15 days. G.S. Oils failed to pay, leading Jai Corp to issue a demand notice on 15.04.2021 for Rs. 1,85,47,108.32. G.S. Oils admitted the debt in its counter dated 03.11.2021. The promoters of G.S. Oils tried

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## Issues and analysis

### Issue 1: Whether the Operational Creditor had made out a case …

**Ratio:** The ratio is that if a debt and default are admitted, nothing more is required for the

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**Reasoning:** The court reasoned that the Corporate Debtor had admitted and acknowledged the debt in

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**Interpretation:** The interpretation is that an explicit admission of debt and default by the

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**Application:** The Corporate Debtor's admission of the debt and default, coupled with the

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## Parties

- **Judges:** N.V.RAMAKRISHNA…; Veera Brahma Rao…
- **Appellants:** Jai Cor…
- **Respondents:** G.S. Oil…
- **Advocates:** Mr.S.V.Vanshi…; Radhika…

## Timeline

- **2011-10-01 — Supply of P…**: Operational Creditor supplied PP bags to Corporate Debtor between October 2011 and…
- **2013-02-01 — Supply of P…**: Operational Creditor supplied PP bags to Corporate Debtor between October 2011 and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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