https://www.taxtmi.com/caselaws?id=764493 The NCLAT Principal Bench allowed an appeal against NCLT Chandigarh's rejection of an amalgamation scheme under Sections 230-232 of Companies Act, 2013. The lower court had rejected the scheme citing suppressed material information affecting share valuation, despite overwhelming shareholder and creditor approval. NCLAT held that the DCF valuation method used was recognized and valid, expert valuers cannot be faulted for using it, and no regulatory objections were raised except initially by Income Tax Department which later left approval to tribunal's discretion. Following SC precedent in Miheer Mafatlal case, the tribunal ruled courts should not substitute their judgment when expert valuation is accepted by majority shareholders without demonstrable errors. The scheme was sanctioned. en-us Tue, 07 Jan 2025 00:00:00 +0530 Sat, 11 Jan 2025 08:46:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764493 The NCLAT Principal Bench allowed an appeal against NCLT Chandigarh's rejection of an amalgamation scheme under Sections 230-232 of Companies Act, 2013. The lower court had rejected the scheme citing suppressed material information affecting share valuation, despite overwhelming shareholder and creditor approval. NCLAT held that the DCF valuation method used was recognized and valid, expert valuers cannot be faulted for using it, and no regulatory objections were raised except initially by Income Tax Department which later left approval to tribunal's discretion. Following SC precedent in Miheer Mafatlal case, the tribunal ruled courts should not substitute their judgment when expert valuation is accepted by majority shareholders without demonstrable errors. The scheme was sanctioned. Case-Laws Companies Law Tue, 07 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764493