HC directed ICAI to grant membership to CA Student who pursued multiple courses during CA Studies

Nikkitha K.J Vs Union of India (Karnataka High Court)

Conclusion: Since on every occasion the student had diligently sought permission from the Respondent to pursue the course and on every occasion, the student had been permitted to pursue the course. When time came to register her as a Member of the Council to practice as a Chartered Accountant, the Respondent wanted to put the clock back by four years tinkering with the permissions that were already granted from time to time, therefore, High Court issued a mandamus to ICAI to consider addressing the grievance of Petitioner in accordance with law and enrolling her as a Member of the Institute bearing in mind the  observations made in the course of the order.

Held:  Petitioner -student had in the month of May 2017 joined B. Com degree and simultaneously, she enrolled herself for a course in CMA Foundation. After joining B. Com degree course, Petitioner completed CMA Foundation course and intermediate course as well in the month of June, 2018 and had pursued her CS-Executive Course which also gets completed in June 2018. Therefore, Petitioner had enrolled herself to several courses and completed all of them except B.Com. degree course which she was pursuing. Petitioner joined Chartered Accountant Articleship training. She then sought permission to continue her B.Com. degree course by submitting necessary application in Form No.112 under the Chartered Accountants Regulations, 1988 for grant of permission to pursue additional courses. The permission was granted. She completed her B.Com degree in September, 2020 and after completion, she sought permission to write CMA final exam and the respondent permitted additional course also to be taken. Petitioner in December, 2020 completed her CMA final exam as well. After its completion, she sought permission to pursue additional course – CS professional again seeking permission by submitting application in Form No.112. Permission was granted. On completion of all the courses and Articleship, Petitioner then filed application seeking enrollment as Member of the 2^nd respondent to become a Chartered Accountant. Certain clarifications were sought from the hands of Petitioner as to how she pursued multiple courses by submitting Form No.112 and later it was informed that the decision was that Petitioner would not be permitted to enroll as a Chartered Accountant for two years and would be imposed a fine of Rs.10,000/- for having pursued multiple courses on every occasion which the 2^nd respondent said it was without permission. It was held that a student would not know the implications of law. A student know only to study and ponder over the study material. She had studied and completed the courses. It was rather surprising that the 2^nd respondent wanted to stifle the career of a student, who had pursued multiple courses and gained such acumen to practice as a Chartered Accountant. It would be helpful to the Institute of Chartered Accountants, and the Society, if a student had extra acumen, than the chartered accountantship alone. Such acts against a student who had only studied and done nothing else, that too after seeking permission would not behove the Respondent to be a State under Article 12 of the Constitution of India. Whatever defence that the council for Respondent sought to project, by invoking Regulation 65 of the Regulations by contending that the permission that was granted was for final courses and not foundation courses that precedes those final courses was a contention skating on thin ice, as the foundation courses got subsumed in the final courses, and permission was granted for pursuing final courses. Therefore, it was deemed appropriate to bend the arc of justice for a student and directed grant of Membership of Petitioner to the Institute without brooking any further delay.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

The petitioner is before this Court calling in question an order/communication dated 1-05-2023 issued by the 3rd respondent declining to accede to the request of the petitioner for membership to practice as a Chartered Accountant and has sought a consequential direction to register the petitioner as a Member of the Institute of Chartered Accountants of India.

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