# In the matter of JSM Devcons Pvt. Ltd.

> NCLT judgment dated 2024-04-05. Citation: TCN-2024-NCLT-01798. M/s Rajasthan Patrika Private Limited filed an application IA/329(MP)2023 seeking acceptance of…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01798
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jsm-devcons-pvt-ltd-970ca169

## Summary

### Background

M/s Rajasthan Patrika Private Limited filed an application IA/329(MP)2023 seeking acceptance of its claim as a financial creditor instead of an operational creditor in the Corporate Insolvency Resolution Process (CIRP) of JSM Devcons Pvt Ltd. Rajasthan Patrika had a barter agreement with JSM Devcons to provide media coverage for the real estate projects of JSM Devcons in exchange for two flats. Rajasthan Patrika published advertisements worth Rs 71,65,000/- in its newspaper. JSM Devcons issued possession letters for the flats, but Rajasthan Patrika did not receive physical possession. During the CIRP initiated by Motel Rahans Private Limited, Rajasthan Patrika submitted its claim as a financial creditor (home buyer), but the IRP admitted it as an operational creditor.

## Facts

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

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## Issues and analysis

### Issue 1: Whether the claim of M/s Rajasthan Patrika Private Limited should be accepted as a financial debt …

**Ratio:** The definition of 'financial debt' under Section 5(8) of the IBC requires a debt along

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**Reasoning:** The NCLT reasoned that Rajasthan Patrika provided services of publication of

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**Interpretation:** The court interpreted Section 5(8) of the IBC and the Supreme Court's ruling in

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**Application:** In this case, Rajasthan Patrika provided media coverage services to JSM Devcons

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** M/s Rajasthan…
- **Respondents:** JSM Devcons Pvt…; Chaya G…

## Timeline

- **2014-09-30 — Barter Agr…**: M/s Rajasthan Patrika Private Limited entered into a Barter Agreement with JSM Devcons…
- **2014-10-01 — Media Cov…**: M/s Rajasthan Patrika Private Limited was to provide media coverage worth Rs 94,50,000/-…

## 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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