Devendraa P. Kapur Vs. ICAI & Others (Appellate Authority)
The Appellant has also taken a ground of Appeal before us that the Disciplinary Committee has decided these cases in accordance with the law which was not prevalent when the alleged misconduct was committed but came into effect after the amendment made in the year 2006 in the Chartered Accountants Act 1949, and/or by revised publications of ICAI. Since, we have set aside the Impugned Orders and the matters have been remanded back to the Disciplinary Committee, we direct the committee to also examine this issue and to decide these cases as per law prevailing at the relevant time including code of conduct and guidelines issued by the Council, whichever were in force at that relevant time, of the alleged misconduct and not as per the law enacted subsequently.
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY
1. These appeals have been filed by the Appellant before this Authority against the Order dated 12thJuly,2017, passed by the Disciplinary Committee (Bench-I) of the Institute of Chartered Accountants of India, under section 21B (3) of the Chartered Accountants Act, 1949 read with Rule 19 (1) of the Chartered Accountants (Procedure of Investigation of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, whereby, the Appellant has been awarded the composite punishment for all the three cases, of the removal of his name from the Register of Members for a period of two years and also imposed a consolidated amount of fine of Rs. 5,00,000/- (Rupees Five Lakh Only) upon him, to be paid within a period of 30 days from the date of receipt of the Impugned Order with a rider that in case the Appellant fails to deposit the amount of penalty within the aforesaid period then his name shall be removed from the Register of Members for a further period of six months. This order was passed consequent upon a Report of the Disciplinary Committee dated 8th February, 2015, wherein, the Appellant was held guilty under Clause (4) of Part-I of the Second Schedule to the Chartered Accountants Act, 1949, in each of these cases.
2. The said clause (4), as prevailing before the Chartered Accountants (Amendment) Act, 2006, effective from 17th November, 2006, reads as under:
“Second Schedule:
PART I: – Professional misconduct in relation to chartered accountants in practice requiring action by a High Court
A chartered accountant in practice shall be deemed to be guilty of professional misconduct, if he–
1. x x x x x x
2. x x x x x x
3. x x x x x x
4. expresses his opinion on financial statements of any business or enterprise in which he, his firm or a partner in his firm has a substantial interest, unless he discloses the interest also in his report”
3. It is to be noted that after the amendment in the Chartered Accountants Act, 1949, in the year 2006, the said clause (4) reads as under:
“Second Schedule:
PART I: – Professional misconduct in relation to chartered accountants in practice
A chartered accountant in practice shall be deemed to be guilty of professional misconduct, if he–
