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TMI Blog2023 (12) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to defend his case. There is nothing on record which discloses that the Petitioner had asked for cross examination of witnesses and, in the absence of any material, this Court is not inclined to accept the contention of the learned Counsel for the Petitioner that the correct procedure had not been followed - Though it has been stated in the present Writ Petition that the composition of the members of the Committee changed, the same was not objected to in the hearing. In fact, the material on record discloses that the Petitioner was explicitly asked if he had any objections and the Petitioner did not raise any objection to the change in the composition of the Committee. It is well settled that while exercising jurisdiction under Article 226 of the Constitution of India, the Courts, while interfering with the decision of Disciplinary Committee, must only look into the decision-making process and not the decision as such. If the decision-making process is fair, then Writ Courts must not interfere with the findings of a Disciplinary Committee. In the instant case, the Petitioner has not been able to demonstrate as to how the procedure adopted by the Disciplinary Committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, the Society filed an FIR, being FIR No. 1024/2015, dated 22.12.2015, registered at Police Station Gobindpura for offences under Sections 420, 409, 467, 468, 471, 34 IPC. It is stated that in terms of Rule 19 (1) of the Chartered Accountants (Procedure of Investigation of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 (hereinafter referred to as the Conduct Rules ), a copy of the complaint was forwarded to the Petitioner herein vide letter dated 10.02.2017 with a request to send his written statement. 4. Material on record discloses that in the written statement, the Petitioner herein denied the allegations levelled against him and stated that the complaint is motivated and is mala fide. The Petitioner further denied the allegation of embezzlement of money received by him from the Society in his professional capacity, and that the entire sum of Rs. 1.90 crores had been transferred to the Society. It was also stated in the written statement that the Petitioner had got anticipatory bail from the High Court of Madhya Pradesh at Jabalpur. It is the stand of the Petitioner that he worked with the Society as a Tax Consultant only till 31.03.2013 and he was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en remitted to his and his family members account in different trenches by way of 12 cheques. Committee held it was surprised to know that despite being a Chartered Accountant neither the Petitioner herein nor his family members had bothered to check as to how these amounts were reflected in their bank accounts. The Committee, therefore, held that the Petitioner was guilty of Professional and/or Other Misconduct falling within the meaning of Item (2) of Part-IV of the First Schedule and Item (4) of Part II of Second Schedule to the Chartered Accountants Act. 8. Vide a separate Order dated 26.08.2022, the Committee imposed a punishment by way of removal of the name of the Petitioner herein from the Register of the Members of the ICAI for a period of one year, along with a fine of Rs. 1,00,000/-. Thereafter, the Petitioner herein filed an appeal against the said Order before the Appellate Authority. 9. There is nothing on record to indicate that the Appellate Authority has stayed the Order of punishment passed by the Disciplinary Committee of the ICAI. It is pertinent to mention here that the authorized representative of the Petitioner herein had stated before the Appellate Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of duties discharged by a CA, they enjoy the full faith and trust of all parties, and thus, the profession of Chartered Accountancy requires utmost sincerity, with no place for dishonesty. The Conduct Rules indicate that Chartered Accountants must perform their jobs with integrity and it also indicates zero tolerance towards the CA if dishonesty is proved. 14. The present case is a classic case of rank dishonesty on the part of the Petitioner herein. Material on record indicates that even after the Petitioner herein stopped being the CA of the Society, he was connected with the working of the Society till 2015. Cheques were given to the Petitioner by the Society in good faith and he has misappropriated the money and has encashed the cheques. Even though the amount has been returned after the FIR was lodged but the fact that the money has been returned cannot absolve the Petitioner of the default. 15. This Court, at this juncture, is not going further into the merits of the case lest it will have an adverse effect on the criminal case which is pending against the Petitioner and, therefore, the observations of this Court are only confined to the question as to whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Council constitute the determinative decision as to the guilt of the member and because it is determinative in character, the Act requires it to be recorded. Thus, the Council has to determine that a member is guilty of misconduct and the task of recording of the findings has been specifically assigned to the Council. Sub-section (4) of Section 21 mandates that where a member of the Institute has been guilty of professional misconduct specified in the First Schedule of the Act, the Council shall afford to such member an opportunity of being heard before any orders are passed against him. After recording a finding that a member is guilty of misconduct, the Act moves forward to the final stage of penalisation. The recording of the finding by the Council is the jurisdictional springboard for the penalty proceedings which follow. 18. Material on record demonstrates that the procedure that is required to be adhered to on finding of professional misconduct by the Disciplinary Committee has been duly followed. The Petitioner has not been able to demonstrate any prejudice that has been caused to him by the Disciplinary Committee. In any event, once the Petitioner has already admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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