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EI work in a firm which provides financial services and I specialize in estimating value of a company’s shares, debentures, enterprise value, brand, trademark, patents etc.
2 years back, OUT OF THE BLUE, our director got an email from Mr A who’s a director in a SME company. It mentioned that B wants to exit from the company by getting the worth of his shares and A and others will pay it to him. For the valuation of these equity shares, NCLT decided to appoint 2 Delhi NCR based firms, 1 of which was our firm.
We were initially hesitant but asked for a hefty fees and did it.
Lo & Behold: B started bitching that the valuation report is not correct and gave it to an MNC to scrutinize. They sent us the results of such scrutiny and shortcomings (as per the MNC’s entitled pricks) BUT we negated all of them logically and sent our legal replies.
In all of this, 1 year passed. Now there’s a fresh NCLT order for us to do the valuation again based on latest financial statements of the company.
NOTE: NCLT has written the Words “This valuation MAY BE re done” by the valuers”. Nowhere they have written SHALL.
WE DON’T WANNA DO IT! We don’t have the patience to involve in their petty fight, we are working to earn money, not to solve disputes where 1 of the parties will always be objecting to the reports and keep stretching the matter for decades!
Please provide your inputs, CAN WE DENY THE ENGAGEMENT RESPECTFULLY?
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EThanks boss! NCLT has written on the order that the valuer may take a nominal fees (1/4th of the original fees) for the re valuation engagement. But my senior replied to the aggrieved party that we will charge the full fees which we charged before.
But can’t we deny the engagement at all? Will NCLT take any action against us for denying it?
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