# In the matter of JSM Devcons Pvt. Ltd.

> NCLT judgment dated 2024-04-05. Citation: TCN-2024-NCLT-01811. M/s Rajasthan Patrika Private Limited filed an application IA/329(MP)2023 in…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01811
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jsm-devcons-pvt-ltd-56738731

## Summary

### Background

M/s Rajasthan Patrika Private Limited filed an application IA/329(MP)2023 in C.P.(IB)/56(MP)2021, seeking acceptance of its claim as a financial creditor instead of an operational creditor. The applicant had a barter agreement with JSM Devcons Pvt Ltd, the corporate debtor, to provide media coverage for their real estate projects from 2014-10-01 to 2016-09-30, valued at Rs 94,50,000. In return, the corporate debtor was to provide flats No.1606 and 1607 in "Pinnacle D Dreams" at Indore. The applicant published advertisements worth Rs 71,65,000 from 2014-10-01 to 2017-01-27. After follow-up and a legal notice dated 2017-08-14, the corporate debtor issued possession letters. However, the applicant did not receive physical possession. When CIRP was initiated

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## Facts

M/s Rajasthan Patrika Private Limited (Applicant) entered into a Barter Agreement with JSM Devcons Pvt Ltd (Corporate Debtor) on 2014-09-30. Under the agreement, the Applicant was to provide media coverage for the Corporate Debtor's real estate projects from 2014-10-01 to 2016-09-30, valued at Rs 94,50,000. In consideration, the Corporate Debtor was to allot flats No.1606 and 1607 in "Pinnacle D Dreams" at Indore to the Applicant. The Applicant published advertisements worth Rs 71,65,000 in its newspaper from 2014-10-01 to 2017-01-27. Following up with the Corporate Debtor, the Applicant issued a legal notice dated 2017-08-14. The Corporate Debtor issued possession letters for the flats, confirming delivery of vacant possession. However, the Applicant did not

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## Issues and analysis

### Issue 1: Whether the applicant, M/s Rajasthan Patrika Private Limited, should be classified as a financial …

**Ratio:** The ratio decidendi is that for a debt to be considered a 'financial debt' under Section

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**Reasoning:** The court reasoned that the applicant provided services (advertisements) to the corporate

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**Interpretation:** The interpretation of Section 5(8) of the IBC is central to this case. The

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**Application:** The court applied the ratio and reasoning to the specific facts of the case.

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** M/s Rajasthan…
- **Respondents:** JSM Devcons Pvt…; Chaya G…
- **Advocates:** Shantanu Shrivasta…; Sumesh D…; +3 more

## Timeline

- **2014-09-30 — Barter Agr…**: M/s Rajasthan Patrika Private Limited entered into a Barter Agreement with JSM Devcons…
- **2014-10-01 — Media Coverag…**: M/s Rajasthan Patrika Private Limited started providing media coverage for JSM Devcons…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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