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TMI Blog2000 (10) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... el respondent had written a letter dated 1-11-1987 to the shareholders of the company for sale of their shares in the said company. The respondent acted dishonestly as he disclosed information which came within his knowledge because of professional engagement. Not only that he gave an erroneous and distorted picture of certain financial aspects but also the infraction was done when the respondent was employed as auditor. On the basis of allegation made, the respondent was charged with the following : ( i )The respondent has been grossly negligent in the conduct of his professional duties and had failed to obtain sufficient information to warrant the expression of the opinion that he had expressed on the worth of the assets of the complain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pees. But it was stated that there was no mala fide involved. So far as his conduct in informing the CBDT is concerned, the respondent took the stand that it was not a professional misconduct, since sometimes the CBDT, are concerned about such transactions and as a matter of precaution the information was given. He stated that the information was given to the CBDT because the offer of the client was more than the apparent value of the shares of the complainant s company. It was further stated that whatever action was taken was in national interest. 4. After considering the rival stands, Disciplinary Committee of the Institute came to the following conclusions : "( i )The 1st part of the 1st charge that he had been grossly negligen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Chartered Accountant. The Committee was of the opinion that the respondent was guilty of other misconduct within the meaning of Section 22 of the Act." 5. Report of the Disciplinary Committee was given to the Council of the Institute. A copy of the report was forwarded to the parties by the Council and they were requested to make representations, if any, in respect thereof. Personal hearing was also granted. The complainant and the respondent submitted their representations on 5-8-1991 and 7-10-1991 respectively. After considering the report of the Disciplinary Committee and after taking into consideration the representations, the Council accepted the report, except the view that the respondent was not guilty of gross negligence unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith procedure in inquiries relating to misconduct of members of the Institute. Section 21, so far as relevant reads as follows : "21. Procedure in inquiries relating to misconduct of members of the Institute : (4) Where the finding is that a member of the Institute has been guilty of a professional misconduct specified in the 1st Schedule, the Council shall offer to the member an opportunity of being heard before orders are passed against him on the case, and may thereafter make any of the following orders, namely: ( a )reprimand the member, ( b )remove the name of the member from the Register for such period, not exceeding five years, as the Council thinks fit : Provided that where it appears to the Council that the case i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inary and natural standard, or according to the standard of a particular profession. The Chartered Accountants profession occupies a place of pride amongst various professions of the world. That makes observance of the professional duties and propriety more imperative. When conduct of a member of the profession is contrary to honesty, or opposed to good morals, or is unethical, it is misconduct-warranting consequences indicated in the Statute. An auditor holds a position of trust. That is why disclosure of information has been made a ground for imputing misconduct. By betrayal of the trust, the conduct becomes one which is unbecoming of the profession. Sections 128 and 129 of the Indian Evidence Act, 1872 throws beacon light on the importa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of "infamous conduct in a professional respect", on the part of a medical man as stated in Allinson v. General Council of Medical Education Registration [1894] 1 QB 750, and applied to the same professional misconduct on the part of Solicitor, and observed : "If it is shown that a medical man, in the pursuit of his profession, has done something with regard to it which would be reasonably regarded as disgraceful or dishonourable by his professional brethren of good repute and competency, then it is open to the General Medical Council to say that he has been guilty of infamous conduct in a professional respect ." The Privy Council approved of the definition in George Frier Grahame v. Attorney General AIR 1936 PC 224 and A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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