The law sent an "appalling message" to people with mental health conditions, Mr Barwell said.
The Mental Health Bill is a private members' bill that is being sponsored by Conservative MP Gavin Barwell.
Lamellar Biomedical raised the money from existing and new shareholders including Barwell, Scottish Enterprise and angel investors Tri Cap.
Mr Barwell described as an "affront" the fact that discrimination against people who had suffered mental illness was enshrined in law.
"It appears that there is growing public understanding that the proposed new food store would not harm the town centre, " said Barwell.
John Barwell, former president of the National Conservative Convention, for political service.
The development, which includes plans for an employment zone, a school, a medical centre, shops, sports pitches and children's play areas, as well as housing, has proved highly controversial within Barwell.
BBC: House building near Richard III camp in Barwell approved
The council has development plans for Northampton town centre up to 2025 but Mr Barwell believes that by this time many more people will use the internet for retail purchases.
This started life as a private members' bill in the Commons, piloted through by the Conservative, Gavin Barwell, and will be steered through third reading by Lord Stevenson of Coddenham.
Mr Barwell raised a laugh by quoting a common law provision that "idiots" could not serve in the Commons - it would come as a surprise to some constituents, he said.
But Barwell believes Mallinder, who has guided Saints back to the Premiership at the first attempt, will not be tempted to join what he Barwell calls the "circus" of England's management set-up.
Croydon Central MP Gavin Barwell, who proposed the debate at the backbench committee meeting last month, said after the debate that he had planned to mention benefits in his opening speech but ran out of time.
The Conservative Charles Walker, who discussed his own experience of OCD in the Commons in June, predicted Mr Barwell could rise to be a Cabinet minister - but added this bill might be the most important achievement of his career, if it became law.
Then peers turn to the committee-stage discussion of the Mental Health (Discrimination) (No. 2) Bill - this is the private member's bill pushed through the Commons by the Conservative Gavin Barwell, to abolish various forms of legal discrimination against people who have, or who have had mental health problems - which may prevent them serving as company directors, jurors or even MPs.
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