PRANAB KUMAR CHATTOPADHYAY, J. - (1.) This is a reference under Section 21 (5) of the Chartered Accountants Act, 1949 (hereinafter referred to as the 'said Act') by the Council of the Institute of Chartered Accounts of India. The Council of the Institute of Chartered Accountants of India (hereinafter referred to as the 'said Council') has found the respondent, a member of the said Institute and a partner of the firm of Basu Dey Kapur, guilty of certain misconduct which was found to have been committed by him by the disciplinary committee of the said Council.
(2.) Certain irregularities in Securities and Call Money Transactions of UCO Bank during the year 1991-92 were reported by the Joint Parliamentary Committee (JPC) and a committee was set up to enquire into irregularities in Securities and Banking Transactions and the committee thereafter enquired into Securities Transactions of banks and financial institutions (Janakiraman Committee). In the first interim report and report No. 5 and the annual audited accounts of UCO Bank for the year 1991-92, certain irregularities and deficiencies were observed and by letters dated 20th May, 1994 and 2nd May,1995. the respondent's firm was asked to submit comments and/or clarifications.
(3.) The respondent's firm sent its clarifications vide letter dated 31st October, 1994 and 9th May, 1995 respectively. Since those clarifications were not found satisfactory, the matter was treated as 'information' in terms of Section 21(1) of the C.A. Act and an 'information letter' dated 15th May, 1997 framing certain charges of misconduct was sent to the firm of the respondent. The said firm was asked to name the member answerable for the said charges. The said firm replied to the 'information letter' by its letter dated 7th November, 1997. Upon a perusal of the written statement, the Council was prima facie of the opinion that the respondent was guilty of professional misconduct and decided to refer the case to the Disciplinary Committee for enquiry. The Disciplinary Committee enquired into the matter and submitted report on 4th February, 2003.;