Case Note & Summary
The dispute arose from a company appeal concerning the valuation of shares held by the appellant, Hemendra Aran, in Greenwood Research & Management Ltd. The appellant contested an order from the NCLT Mumbai Bench regarding the acquisition of 21,355 shares at a specified valuation. The NCLT had based its decision on a valuation report submitted on 06.11.2025 and an affidavit filed on 17.02.2026, which the appellant claimed were not provided to him prior to the decision. The appellant argued that the reliance on these documents without giving him an opportunity to contest them rendered the NCLT's judgment vitiated. The respondent's counsel contended that the earlier valuation report was more favorable to the appellant, thus no prejudice was caused. However, it was acknowledged that the appellant had not received the later documents, which led to a consensus that the impugned order should be quashed and the matter remitted back to the NCLT for reconsideration. The NCLAT emphasized the importance of adhering to the principles of natural justice and directed that the NCLT should decide the application afresh, considering the implications of the new evidence, within four months of receiving the certified copy of the order.
Headnote
A) Companies Law - Valuation Report - Right to Fair Hearing - Companies Act, 2013, Section 230, 424 - The court held that the appellant was not provided the valuation report and supporting affidavit prior to the impugned order, violating principles of natural justice. The order was quashed and the matter was remitted back for reconsideration with the opportunity for the appellant to contest the new evidence (Paras 8-9).
Issue of Consideration
Whether the appellant was denied a fair opportunity to contest the valuation report and affidavit before the NCLT.
Final Decision
The NCLAT quashed the NCLT's order dated 10.06.2026 and remitted the matter back for reconsideration, emphasizing the need for the appellant to have access to the valuation report and affidavit to ensure a fair hearing.
Law Points
- Natural justice
- Valuation report
- Companies Act
- 2013
- Section 230
- Section 424
