G. L. Sultania & Anr v. SEBI & Ors AIR 2007 SC 2172

Securities and Exchange Board of India Act , 1992
S.15Z: Valuation of shares- Valuation of shares is a technical and complex problem which can be appropriately left to the consideration of experts in the field of accountancy.[ Companies Act , 1956 , S. 4(1)]

Valuation of shares is a technical and complex issue which may be appropriately left to the wisdom of the experts, having regard to the many imponderables which enter the process of valuation of shares. If the valuer adopts the method of valuation prescribed, or in the absence of any prescribed method, adopts any recognized method of valuation, his valuation cannot be assailed unless it is shown that the valuation was made on a fundamentally erroneous basis, or that a patent mistake had been committed, or the valuer adopted a demonstrably wrong approach or a fundamental error going to the root of the matter. Valuation of shares is a technical and complex problem which can be appropriately left to the consideration of experts in the field of accountancy.