Case Law Details
Mohit Bansal Vs Institute of Chartered Accountants of India & Ors. (Delhi High Court)
The Delhi High Court dealt with an intra-court appeal arising from the dismissal of a writ petition that had challenged a show cause notice issued by the Institute of Chartered Accountants of India. The appellant, a qualified Chartered Accountant and member of the Institute, had initially approached the Court seeking quashing of a show cause notice dated 14.09.2020. The learned Single Judge dismissed that writ petition on 21.01.2022. The appellant thereafter filed the present appeal challenging the dismissal.
During the pendency of the appeal, the Institute proceeded with the disciplinary process. A hearing pursuant to the show cause notice was conducted on 29.08.2022, and by an order dated 01.03.2023, the appellant’s name was removed from the Register of Members under the Chartered Accountants Act, 1949. Following this development, the appellant sought amendment of the appeal to also challenge the removal order. The amendment application was allowed on 13.09.2023, without prejudice to the rights and contentions of the respondents, and the appeal was accordingly amended.
At the hearing of the appeal, the Court indicated that a direct challenge to the final removal order could not ordinarily be entertained at the appellate stage unless the appellant had first approached the Single Judge by way of a writ petition against that order. To assist the Court on this issue, a senior advocate appeared and submitted that the appeal had been amended to include the challenge to the removal order, which was passed relying upon the earlier judgment dismissing the writ petition.
However, on instructions from the appellant, it was submitted that the appellant was willing to withdraw the appeal with liberty to file a fresh writ petition before the Single Judge specifically challenging the final removal order dated 01.03.2023. A request was also made that such writ petition, if filed, be decided expeditiously. The Institute raised no objection to this course, subject to all rights and contentions being kept open.
Accepting the request, the Court dismissed the appeal as withdrawn, granting liberty to the appellant to approach the Single Judge to challenge the removal order. The Court clarified that any such writ petition would be decided independently, without being influenced by observations in the earlier judgment dismissing the challenge to the show cause notice, and on its own merits. The Court requested that the Single Judge hear and decide the writ petition, if filed, preferably within six months. It was expressly stated that no opinion on the merits of the dispute was being expressed and that all rights and contentions of the parties remained open.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The Appellant has filed the present Appeal challenging the order dated 21.01.2022 (“Impugned Judgement”) passed by the learned Single Judge of this Court in W.P. (C) 6819/2020 (“Writ Petition”).
2. The Appellant is a qualified Chartered Accountant and member of Respondent No.1, the Institute of Chartered Accountants of India. The Writ Petition was filed seeking quashing and setting aside of the Show Cause Notice (“SCN”) dated 14.09.2020 issued by Respondent No. 1. Vide Impugned Judgement, the learned Single Judge of this Court dismissed the Writ Petition.
3. Accordingly, the present Appeal was filed on 21.02.2022 challenging the Impugned Judgement. During the pendency of the present Appeal, Respondent No. 1 conducted the hearing pursuant to the SCN on 29.08.2022 and passed an order dated 01.03.2023 removing the name of the Appellant from the Register of Members under the Chartered Accountants Act, 1949.
4. The Appellant filed CM Application 1127/2023 seeking amendment of the present Appeal challenging the order dated 01.03.2023. The said Application was allowed vide order dated 13.09.2023 and the Appellant was permitted to amend the present Appeal without prejudice to the rights and contentions of the Respondents. Accordingly, the present Appeal has been amended to include the challenge to the order dated 01.03.2023 in this Appeal.
5. During the course of the hearing of the present Appeal, it was pointed out to the Appellant that without challenging the order dated 01.03.2023 before the learned Single Judge by way of a Writ Petition, this Court in Appeal would not be able to entertain the challenge directly against the order dated 01.03.2023. Accordingly, at the request of this Court, Mr. Kailash Vasudev, Senior Advocate, who was present in the Court, agreed to appear for the Appellant to assist this Court on this issue.
6. Mr. Kailash Vasudev, learned Senior Counsel submitted that pursuant to order dated 13.09.2023, the present Appeal was permitted to be amended to include the challenge to the order dated 01.03.2023, which was passed relying upon the Impugned Judgement as basis for removing the Appellant from membership of Respondent No. 1.
7. However, Mr. Vasudev, on instruction of the Appellant, who is present in the Court, submitted that the Appellant is willing to withdraw the present Appeal with a liberty to approach the learned Single Judge by way of filing a Writ Petition challenging the order dated 01.03.2023 and requested that the learned Single Judge may be requested to decide the Writ Petition expeditiously.
8. The learned Senior Counsel for Respondent No. 1 has no objection to the request made on behalf of the Appellant, however she requested that all rights and contentions of the Parties may be kept open.
9. Accordingly, the present Appeal is dismissed as withdrawn with a liberty to the Appellant to approach the learned Single Judge to challenge the order dated 01.03.2023. If such Writ Petition is filed, the same shall be decided without being influenced by the observations made in the Impugned Judgement and will be decided on its own merits. We request the learned Single Judge to hear and decide the Writ Petition, if filed, as expeditiously as possible, preferably within a period of six months. Needless to state that all the rights and contentions of the Parties are kept open and we have not expressed any opinion on the merits of the case. We record our appreciation for Mr. Kailash Vasudev, Senior Advocate for his assistance.
10. The Appeal stands disposed of in the aforesaid terms.
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