Case 1: Shreya’s India (P) Ltd. v. Samrat Industries (P) Ltd. (Rajasthan High Court).
The Regional Director raised an objection that no valuation report has been filed and that the exchange ratio for amalgamation has not been worked out by an independent valuer. The Hon’ble Court overruled this objection and sanctioned the scheme of amalgamation by holding that there was no legal or factual impediment to grant sanction to the scheme of amalgamation.
Case 2: Advance Plastics (P) Ltd vs Dynamic Plastics (P) Ltd (Bombay High Court).
The shares are the properties of the shareholders and they are the ultimate and the best judge of the value they would put on their charges. There is no requirement in the Companies Act that in such a case (i.e. amalgamation) the ratio of exchange has to be determined on a valuation made by a chartered accountant and auditor. In the present case, no shareholder has challenged the amalgamation. In the circumstances, valuation report is not necessary.
Case 3: Division Bench of the Bombay High Court in Anup Kumar Sheth vs Reliance Industries Limited and Others
In this case, it was held that in absence of any material contradicting the conclusions reached with respect of valuation of shares and its fairness, it would be difficult to come to a finding that the conclusions drawn by expert were absurd.