"The valuation of shares is not only a question of facts, but also arises out of technical & complex issues." Comment and analyse with the help of decided case laws.

The Supreme Court followed the principle laid down in the case of Dr. Renuka Dutta vs. B. V. Solvay Pharmaceuticals and held that the valuation of shares is not only a question of fact, but also raised technical and complex issues 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. Where a method of valuation is prescribed the valuation must be made by adopting scrupulously the method prescribed, taking into account all relevant factors which may be enumerated as relevant for arriving at the valuation. In Duncans Industries Ltd. vs. State of U.P. and others , the Hon'ble Court held that the question of valuation is basically a question of fact and this Court is normally reluctant to interfere with the finding on such a question of fact if it is based on relevant material on record. Similarly in Miheer H. Mafatlal vs. Mafatlal Industries Ltd. the Hon'ble Court sounded a note of caution observing that valuation of shares is a technical and complex problem which can be appropriately left to the consideration of experts in the field of accountancy.