J U D G M E N T

ASHOK BHUSHAN, J.

1.This appeal has been filed challenging the order dated 10.07.2025 passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi, Court – IV rejecting IA 438/2025 filed by the Appellant to exclude the  unsold inventory in the project, Spaze Arrow and subject property from the valuation of the Corporate Debtor and the Information Memorandum. The Adjudicating Authority by the impugned order has rejected the application. Aggrieved by which order, this appeal has been filed. Brief background facts giving rise to this appeal are:

(i) The Appellant entered into a Collaboration Agreement dated 19.06.2010 for development of a commercial complex "Spaze Arrow" in the land owned by the Appellant situated at Village Naurangpur, Dist. Gurugram which falls in Sector 78, Gurugram, Haryana.

(ii) Appellant issued a General Power of Attorney and Special Power of Attorney in favour of the Corporate Debtor.

(iii) There arose certain dispute between the Appellant and the Corporate Debtor. Appellant issued notice dated 13.12.2018 and 21.12.2018 cancelling the General Power of Attorney and Special Power of Attorney given in favour of the Corporate Debtor.

(iv) The Corporate Debtor got the project registered with Haryana Real Estate Regulatory Authority (HARERA), Gurugram and also obtained approval of revised building plan. The Corporate Debtor allotted 147 units to different allottees.

(v) Complaints were filed before HARERA, Gurugram by allottees seeking direction against the Promoter / Developer to carry on their obligation of completing the construction and handing over the possession.

(vi) The Corporate Debtor initiated proceedings under Section 9 of the Arbitration and Conciliation Act, 1996 seeking protection of the project land and construction raised thereon. Learned Additional District Judge issued an interim injunction on 09.04.2019 restraining the Appellant – Ishaan Singh from cancelling the Collaboration Agreement dated 19.06.2010 and certain other directions.

(vii) Under the Collaboration Agreement there was arbitration clause between the parties. Arbitration proceeding commenced between the parties, where the Corporate Debtor was Claimant and Ishaan Singh was arrayed as Respondent. Claimant filed its claim and Respondent filed its counter claim.

(viii) Unitholders of the Corporate Debtor of project Spaze Arrow filed application under Section 7 against the Corporate Debtor on 19.05.2021.

(ix) On a complaint filed by allottees before the RERA, RERA passed an order on 09.02.2022 issuing direction to land owner – Ishaan Singh and the Corporate Debtor to commence and complete the construction/ development of the project.

(x) The Arbitration proceeding initiated by the Corporate Debtor culminated into award dated 14.09.2022 delivered by three retired Hon’ble Judges of the Supreme Court. The claim of the Corporate Debtor was rejected. The land owner was awarded compensation and cost. Counter claim filed by the land owner was partly rejected.

(xi) Ishaan Singh filed petition under Section 9 of the Arbitration and Conciliation Act, 1996 before the Commercial Court at Gurugram in which an order was passed on 21.12.2022. Interim order was passed directing the Corporate Debtor not to carry out any work of construction in the land. An appeal was filed by the Corporate Debtor against the said order, which appeal was disposed of.

(xii) Section 34 application was filed by the Corporate Debtor against the award dated 14.09.2022, which Section 34 application came to be dismissed on 30.01.2024 by learned Additional District Judge. Against the order passed under Section 34, an application under Section 37 of Arbitration and Conciliation Act was filed which is stated to be pending.

(xiii) NCLT vide order dated 21.10.2024 admitted Section 7 application filed by the Allottees. An independent application under Section 7 was filed by the Appellant, which was disposed of on 21.10.2024 giving liberty to the Appellant to appro