Independent Valuer Resolves Share Dispute through Sealed Offers: Fair Valuation Key in Shareholding Disputes

The tribunal appointed an Independent Valuer to determine the fair value of shares of a company for shareholding division. After a dispute arose regarding a valuation error related to Jantri rates, the tribunal directed the parties to submit sealed offers for the higher offeror to buy back shares, leading to an amicable resolution. The judgment underscores the significance of fair valuation in resolving disputes and fostering amicable solutions in shareholding matters.

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Issues:
1. Appointment of Independent Valuer for determining fair value of shares of a company.
2. Dispute regarding the valuation report submitted by the Independent Valuer.
3. Request to rectify a patent error in the valuation process.
4. Submissions by the parties regarding the fair value of equity shares.
5. Consideration of valuation reports by government-approved valuers.
6. Agreement between parties to part amicably and buy back shares.

Analysis:
1. The judgment involves an application for the appointment of an Independent Valuer to determine the fair value of shares of a company for shareholding division among parties in compliance with a previous tribunal order. The Independent Valuer was appointed by the tribunal to assess the value of equity shares, and the valuation report determined the fair value per share at Rs. 471.38.

2. Dispute arose when Respondents pointed out a patent error in the valuation process related to the application of Jantri rates for immovable properties. They requested the tribunal to rectify the error and recalculate the fair value, suggesting that the correct Jantri rate would result in a lower value per share of not more than Rs. 426.38.

3. Parties submitted their arguments regarding the valuation report, with the Applicant challenging the valuation based on Jantri rates and proposing to set aside the report. The Applicant also suggested considering the mean value from two independent valuers' reports for real estate, offering to purchase shares at Rs. 1247.27 per share.

4. The tribunal considered valuation reports from government-approved valuers appointed by both parties for three immovable properties of the company. After reviewing submissions and objections, the tribunal noted the agreement between parties to part amicably and buy back shares based on the higher offer price.

5. Given the agreement to part amicably, the tribunal directed both parties to independently submit their offer prices in sealed covers for the higher offeror to purchase the shares and facilitate an amicable resolution. The parties were given 15 days to submit their offers, with a compliance date set for further proceedings.

6. Consequently, the tribunal disposed of the application with the above observations, emphasizing no order as to costs, and scheduled the matter for compliance on a specified date. The judgment highlights the importance of fair valuation in resolving disputes and promoting amicable solutions among parties involved in shareholding matters.

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