CHAPTER XVII
REGISTERED VALUERS
Notified Date:18/10/2017
Effective date: 18/10/2017
Valuation by Registered Valuers
* 247. (1) Where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities under the provision of this Act, it shall be valued by 1[a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed] and appointed by the audit committee or in its absence by the Board of Directors of that company.
(2) The valuer appointed under sub-section (1) shall,—
(a) make an impartial, true and fair valuation of any assets which may be required to be valued;
(b) exercise due diligence while performing the functions as valuer;
(c) make the valuation in accordance with such rules as may be prescribed; and
(d) not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time 2[during a period of three years prior to his appointment as valuer or three years after the valuation of assets was conducted by him].
(3) If a valuer contravenes the provisions of this section or the rules made thereunder, the valuer shall be 3[liable to a penalty of fifty thousand rupees]:
Provided that if the valuer has contravened such provisions with the intention to defraud the company or its members, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
(4) Where a valuer has been convicted under sub-section (3), he shall be liable to—
(i) refund the remuneration received by him to the company; and
(ii) pay for damages to the company or to any other person for loss arising out of incorrect or misleading statements of particulars made in his report.
Notes:
* Powers u/s 247 of Central Government are delegated to Insolvency and Bankruptcy Board of India; MCA Notification dated 23rd October 2017
conferring delegation of powers under section 247 of the Companies Act 2013.
Amendments:
1. Substituted by the Companies (Removal of Difficulties) Second Order 2017, Dated- 23rd October, 2017.
For the words "a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed" the following shall be substituted:
"a person having such qualifications and experience, registered as a valuer and being a member of an organisation recognised, in such manner, on such terms and conditions as may be prescribed"
2. Substituted by the Companies Amendment Act 2017 :- Amendment effective from 9th february 2018
In section 247, in sub-section (2), in clause (d), for the words
"during or after the valuation of assets"
The following words shall be substituted, namely :-
"during a period of three years prior to his appointment as valuer or three years after the valuation of assets was conducted by him"
3. Substituted by the Companies (Amendment) Act, 2020. Notification dated 28th September, 2020 Amendment effective from 24th March 2021
in sub-section (3), for the words:-
" punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees:"
The Following shall be substituted-
"liable to a penalty of fifty thousand rupees"
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