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TMI Blog2010 (11) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... , CA, New Delhi (hereinafter referred to as Respondent). Simultaneously, the Respondent has also challenged the said decision of the Council by filing the suit for declaration, mandatory injunction and perpetual injunction which was dismissed by the learned Civil Judge vide order dated 12.08.2000. The same was also dismissed as infructuous vide order dated 01.05.2004 when it went in for revision. By challenging the same, the Respondent has preferred RSA No. 180/2004 which is tagged with the Reference. 2. The Central Bureau of Investigation, Special Crime Branch, New Delhi, through Sh.J.C. Dabas, the then Superintendent of Police (hereinafter to be referred as the complainant) made the following allegations against Sh.Y.K. Gupta: The Respondent issued a bogus certificate dated 15th February, 1984 certifying the value of the exports made by a fictitious firm, M/s Impex Services, Amritsar on the basis of which advance import licence dated 25th February, 1984 for Rs. 26,08,522/- was issued by the Chief Controller of Imports Exports, Amritsar. Consequently, the Government of India was cheated to the tune of Rs. 1,99,15,818/- against the import of polyester filament yarn. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance import licence and the same was issued bearing No. P/K/3071749 dated 25.02.1984 for ₹ 26.08 lacs on the basis of Certificates given by Sh. Y.K. Gupta which stated that the aforesaid firm has exported Hoisery Products during the years 1980-83 of ₹ 80.12 lacs. The Charted Accountant certificate which was essential for issuance of an advance import licence was alleged to be bogus. Further interrogation revealed that Sh.Y.K. Gupta issued the said bogus certificate on the basis of documents brought before him. However, he could not tell as to who had brought the said records before him, as he was not maintaining any books of accounts. Further it was also transpired that Polyester filament yarn was imported vide against this licence and the same was sold in the open market and that the export order was also bogus as alleged. 5 The Disciplinary Committee framed following specific issues on which the further enquiry was to be made: a) To examine whether at the relevant time M/s Impex Services was registered firm or not and to examine the genuineness of the firm M/s Impex Services. b) To summon the partners of M/s Impex Services along with the books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted and pending as being referred to this Court for final disposal, the ld. Sr. Civil Judge vide his order dated 01.05.2004 dismissed the appeal as having become infructuous. The Respondent filed RSA. However, the Disciplinary Committee decided to proceed with further enquiry as there was no stay of the proceedings in the said LPA, and gave its report to the council. 8. The Respondent submitted before the Council that the firm was not fictitious and was in existence firstly at Jalandhar and then at Amritsar. The Respondent had not submitted the working papers before the Disciplinary Committee as he was legally advised not to part with the working papers to any authority because the complaint belongs to Police and CBI and the criminal cases are pending against many proprietary firms. The complainant however, requested for an opportunity of being heard after perusal of the working papers. 9. On consideration of the documents produced and the oral submissions made by the parties, the Council decided that a further enquiry was necessary to be made in the matter by the Disciplinary Committee on certain specific issues. Accordingly the case was listed for hearing on 08.08.2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk has a system of destruction of old records at regular intervals of time and as such we do not have either the copy of account opening form nor statements of their accounts. (iii) The signatures appearing on the certificates indicated above appear to tally with signature of Mr. E. Balakrishnan, an authorized official of the Bank at the time of issue of the certificate. However, Mr. Balakrishnan is no more in the services of the Bank and has retired long back. (iv) The certificate per se does not indicate the item of commodity nor the quantity exported. 11. Sh. Harikesh, CBI Inspector in his deposition stated that the firm M/s Impex Services was in existence and was registered with Handloom Board. He stated that the firm was exporting some other items and not readymade garments. In the certificate, RBI Code Number of the firm is given and it implies that the firm was registered with RBI. The CBI Inspector was unable to either confirm or deny this fact. As regards the deposition given by the owner of the premises at No. 3, Ranika Bagh, Amritsar, it was explained that the firm was originally located at Jalandhar and shifted its base to Ranika Bagh, Amritsar in 1984. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which he belongs has adopted a code of professional conduct. The noble traditions set up by the learned professions, such as, Ecclesiastics, Medicine and Law, have been followed by others, with a view to instil public trust and confidence. The over-riding motto has been 'pride of service in preference to personal gain'. A code of professional conduct may have the force of law, as is the case in this country in some matters, as well as the result of discipline and established conventions voluntarily undertaken by the members, any breach whereof would result in the person being disentitled to continue as a member of the professional body. In any event, it has a great deal of practical value in so far as it proclaims to the public that the members of the profession will carry on their duties and responsibilities, having regard to the public interest. This, in turn, will give an assurance to the public that in the event of a member straying away from the path of duty, he would be suitably dealt with by the professional body. Human nature being what it is, a man can be selfish - to place his personal gain above service. Therefore, persons who as individuals and as a class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in AIR 1963 SC 1313, which was rendered in context of misconduct of an advocate to point out that the Supreme Court, in paragraphs 7 and 8 of its judgment, held that wherever conduct proved against an Advocate is contrary to honesty, or opposed to good morals, or is unethical, it may be safely be held that it involves moral turpitude. The Supreme Court observed that, in dealing with the matter of professional propriety, we cannot ignore the fact that the profession of law is an honourable profession and it occupies a place of pride in the liberal professions of the country. Any conduct which makes a person unworthy to belong to the noble fraternity of lawyers or makes an advocate unfit to be entrusted with the responsible task of looking after the interests of the litigant must be regarded as conduct involving moral turpitude. It was held that; An Advocate invites disciplinary orders not only if he is guilty of professional misconduct; but also if he is guilty of other misconduct; and this other misconduct which may not be directly concerned with his professional activity, as such, may nevertheless be of such a dishonourable or infamous character as to invite the punishment du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional misconduct as defined in Section 22 of the Act has been given power to inquire into the conduct of any member of the institution under circumstances other than those specified in the Schedules to the Act. The Council is not debarred from inquiring into the conduct of any member of the institute under any other circumstances, as asserted in the Code. This aspect is fully borne out by the expression professional or other misconduct occurring in Section 21. The power of the Council to inquire into other misconduct which is not mentioned in the Schedules is placed beyond any pale of controversy by the decision of the Supreme Court in Institute of Chartered Accountants v. B. Mukharajea (supra) in which the Supreme Court has, in terms, held that, if a member of the Institute is found, prima facie, guilty of conduct which, in the opinion of the Council, renders him unfit to be a member of the Institute, even though such conduct may not attract any of the provisions of the schedule, it would still be open to the Council to hold an inquiry against the member in respect of such conduct and a finding against him in such an inquiry would justify appropriate action being taken by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served that in the certificate dated 15.02.1984, the product Readymade Garments is mentioned while in the certificate dated 22.02.1984 Readymade Hosiery Products is mentioned. During the course of the deposition before the Committee it was brought on record that export was made to European countries which has not been refuted by the Respondent. The Committee observed that the export to these countries can be executed only after obtaining the quota from AEPC. In response to this, the Respondent stated that the firm had exported Readymade Hosiery Garments for which quota from AEPC was not necessary. The word Readymade Garments used in the first certificate will include Readymade Hosiery Garments . Similarly, the word Readymade Hosiery Product used in second certificate will include Readymade Garments . The Respondent asserted that there was no mistake on his part and he had certified the correct product. Thus, according to him the correct product was Readymade Hosiery Garments . 21. We feel that there was utter confusion over the Readymade Hosiery Garments and Readymade Garments . At a glance, Readymade Garments and Readymade Hosiery Garments seems to be Ready ..... X X X X Extracts X X X X X X X X Extracts X X X X
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