# In the matter of Celebration City Projects Pvt. Ltd. (IB)-652(PB)-2019

> NCLT judgment dated 2022-09-26. Citation: TCN-2022-NCLT-00940. The case involves an application filed by a real estate allottee, M/s. Jones Lang Lasalle…

- **Court:** NCLT
- **Order date:** 26 Sept 2022
- **Citation:** TCN-2022-NCLT-00940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/celebration-city-projects-pvt-ltd-ib-652pb-2019-e44a09f8

## Summary

### Background

The case involves an application filed by a real estate allottee, M/s. Jones Lang Lasalle Building Operations Pvt Ltd., against the Corporate Debtor, M/s. Celebration City Projects Pvt Ltd. The applicant's claim was rejected by the Resolution Professional (RP) because of an arbitral award dated 25.10.2018 passed in favor of the applicant, which the RP believed disqualified the applicant from being considered a real estate allottee. The applicant sought recognition as a financial creditor in the class of allottees and other related reliefs.

## Facts

M/s. Jones Lang Lasalle Building Operations Pvt Ltd., a real estate allottee, filed an application against M/s. Celebration City Projects Pvt Ltd., the Corporate Debtor. The Resolution Professional rejected the applicant's claim, citing an arbitral award dated 25.10.2018 in favor of the applicant. The applicant sought recognition as a financial creditor in the class of allottees, seeking the court's direction to the Respondent to recognize the status of the Applicant as a Financial Creditor in the class of allottees. The arbitral award directed the respondent to deliver possession of a commercial unit (5000 sq. ft.) in the Red Mall project at Nehru Vikas Minar Commercial Project, GT Road Ghaziabad U.P., within two months. It also imposed a penalty of Rs 3,58,750 per

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## Issues and analysis

### Issue 1: Whether the existence of an arbitral award in favor of a real estate allottee prevents the allottee …

**Ratio:** The principle is that the nature of the original transaction determines the

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**Reasoning:** The court reasoned that the applicant's original claim was as a real estate allottee, and

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**Interpretation:** The interpretation is that the substance of the claim, i.e., the underlying

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**Application:** The court applied this principle to the facts by holding that the applicant

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash Kumar…
- **Appellants:** M/s Jones Lang…
- **Respondents:** M/s Celebration…

## Timeline

- **2018-10-25 — Arbitral Awa…**: An arbitral award was passed…
- **2022-09-06 — Voting for Authorized…**: Voting lines were opened for selection and appointment of A.R. from 4.00 P.M. 6th…

## 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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