use the following code

public class Testing1 extends javax.swing.JFrame {
public Testing1() {

         JFrame frame = new JFrame();
    JPanel panel = createPanel();
    panel.setLocation(100, 100);
    //panel.setLayout(null);
    this.add(panel);
    this.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
    this.pack();
    this.setLocationRelativeTo(null);
    this.setVisible(true);

    initComponents();
}


 private JPanel createPanel() {
jPanel1 = new JPanel(new GridLayout(0, 1, 10, 5));

EmptyBorder panelBorder = new EmptyBorder(10, 10, 10, 10);
jPanel1.setBorder(panelBorder);
EmptyBorder border = new EmptyBorder(5, 20, 5, 20);
LineBorder line = new LineBorder(Color.blue, 2, true);
CompoundBorder compound = new CompoundBorder(line, border);
for (int i = 0; i <12; i++) {
JLabel label = new JLabel(“Label” + i);
label.setBorder(compound);
// label.setBounds(13, 100, 100, 50);
jPanel1.add(label);
}
return jPanel1;
}
SOURCE: JFRAME