Chartered Accountants Act, 1949 : s.22 read with s.21, Schedule I Part IV – Other misconduct – Complaint against Chartered Accountant relating to sale of shares, transferred to the Chartered Accountant’s own name – Disciplinary Committee found his conduct derogatory in nature and held him guilty of ‘Other Misconduct’ u/s. 22/21 – Recommendation made by the Council of the Institute of Chartered Accountants to the High Court to remove the Chartered Accountant for a period of six months from the rolls, however, the High Court did not impose any penalty – Correctness of – Held: High Court did not correctly appreciate s. 21(3) – Disciplinary Committee found the Chartered Accountant guilty of a practice which was not in the Chartered Accountant’s professional capacity – Under Schedule I Part-IV sub clause(2), the Council can hold Chartered Accountant guilty if their act brings disrepute to the profession whether or not related to his professional work – Thus, the order of the High Court is set aside and the matter remanded to the High Court to be decided afresh.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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