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Section247
The Companies Act, 2013

Valuation by registered valuers

In force From 01 Apr 2014 Act 18 of 2013 As on 15 Oct 2026

Act 18 of 2013 Ministry Corporate Affairs Enacted 29 Aug 2013 In force 01 Apr 2014 Cited by 1 provision Instruments 11

Section 247 of the Companies Act, 2013 deals with valuation by registered valuers. 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 [a person having such qua The Act came into force on 01 Apr 2014.

(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, registered as a valuer and being a member of an organisation recognised, 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 appointments 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 punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh 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.

Section 247, The Companies Act, 2013 (Act 18 of 2013).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 1

  1. s. 132 Constitution of National Financial Reporting Authority

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Shakti Kumar Prabhakar v. Union of India

    High Court 21 Apr 2022 Persuasive (High Court DB) CWJC 9807/2020; Final Order 21.04.2022 (Rajan Gupta & Mohit Kumar Shah JJ., Patna HC)

    Court's Decision & Legal Precedent

    DATE VERIFIED Final Order 21.04.2022 (order-1.pdf): DB recorded Union’s stand that Cos Act s.247 valuation must be by registered valuers under Valuation Rules for Companies Act/IBC valuations, but Wealth Tax/other-law valuers remain free outside that regime; disposed writ with liberty to bring that clarification to empanelling banks.

    On this section: s.247 requires Companies Act/IBC valuations by registered valuers under the Valuation Rules; does not extinguish valuations under other statutes.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 06 Jun 2018 KLHC010501742018

    … Act, 1957 and since the date of registration, they are practising as registered valuers for the purpose of Wealth Tax, Income Tax, SARFAESI Act, banks and financial institutions etc. etc. Now Government of India has framed rules called the Company (Registered Valuers and Valuation) Rules, 2017 invoking power under section 247 of the Companies Act. As per the rules, petitioners will have to undergo a study of 50 hours duration in order to secure the registration. Being aggrieved petitioners have submitted Ext.P2 before the 1st respondent, which is pending consideration and seeks direction for early disposal of the same. 3. Having heard …

    Read this order on eCourtsIndia

Made under this section, and citing it

7 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

Another 4 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 247

What have the courts held on Section 247 of the Companies Act?

Shakti Kumar Prabhakar v. Union of India (21 Apr 2022) is the leading judgment on this section among those set out below: s.247 requires Companies Act/IBC valuations by registered valuers under the Valuation Rules; does not extinguish valuations under other statutes.

How do I find court cases under Section 247 of the Companies Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 247, section 247 Companies Act, section 247 of the Companies Act. People searching for it also type companies act 2013 section 247. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Shakti Kumar Prabhakar v. Union of India (21 Apr 2022).

What should I read with Section 247 of the Companies Act, and has it changed?

1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 7: most recently G.S.R NO. 831(E) Companies registered valuers amendment rules 2022 dated 21.11.2022 (2022), then Companies ( Registered Valuers and Valuation) Amendment Rules, 2018 (2018), and 5 more.

When did Section 247 of the Companies Act come into force?

Section 247 of the Companies Act, cited as Companies Act 247, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.