INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Vs. L K RATNA

JUDGEMENT

(1.) These appeals raise some fundamental questions in regard to the conduct and procedure of disciplinary proceedings taken under the Chartered Accountants Act, 1949. Two of the questions are :-

(2.) The appellant is the Institute of Chartered Accountants of India (the "Institute"). The Institute was created as a body corporate under the Chartered Accountants Act, 1949 (the "Act"), and its members are Chartered Accountants. The affairs of the Institute are managed by a body known as the Council of the Institute, which is headed by a President and a Vice-President below him. There are three Standing Committees of the Council, and one of them is the Disciplinary Committee. The Disciplinary Committee consists of the President and the Vice-President ex-officio of the Council, two members elected by the Committee from its members and a third member nominated by the Central Government. Chapter V of the Act contains provisions dealing with cases of misconduct of members of the Institute. Section 21 provides for conducting equiries relating to such misconduct and the penalties which may be imposed, and Section 22A provides for an appeal by a member against the imposition of a penalty. As the Sections are material, they may be set forth :-

(3.) Messrs A.F. Ferguson and Co. ("Ferguson and Co.") is a reputed firm of Chartered Accountants. The respondent Lalit Kumar Ratna is a partner and the respondents Ashok Kumar Behl and P.R. Bhoopatkar are employees in the firm. All three are Chartered Accountants and members of the Institute.