M Joseph Louis Aloysius Vs institute of chartered accountants of India (Delhi High Court)
Dishonor of Cheques by Chartered Accountant amounted to “Other Misconduct was remanded back for reconsideration”: Delhi HC
Conclusion: Board of Discipline (BoD) under Section 21A of the Chartered Accountants Act, 1949 had failed to accord any reason as to how the mere act of dishonor of cheques issued by assessee would amount to misconduct, therefore, the matter was remanded back to the Appellate Authority for reconsideration of his appeal on merits.
Held: Single Judge had dismissed the writ petition preferred by assessee challenging the order passed by Appellate Authority of the respondent no.1/ The Institute of Chartered Accountants of India (ICAI), disposing of his appeal by modifying the penalty imposed on him by the Board of Discipline (BoD) under Section 21A of the Chartered Accountants Act, 1949. BoD had after holding the appellant guilty of ‘other misconduct’ as envisaged under Clause (2) of Part IV of the First Schedule to the Act, imposed a penalty of removal of his name for a period of three months from the register of members of respondent no.1 alongwith a fine of Rs.10,000/-. This penalty was modified by the Appellate Authority to that of reprimand alongwith the same fine of Rs.10,000/- as imposed by the BoD. Appellant had approached this Court by way of the present intra Court appeal. It was held that BoD had failed to accord any reason as to how the mere act of dishonor of cheques issued by assessee would amount to misconduct. Further, even though assessee had filed a detailed appeal assailing these findings of the BoD, neither the Appellate Authority nor Single Judge examined his challenge on merits. Therefore, assessee deserved a chance to press his challenge to the findings of guilt rendered by the BoD. The findings of BoD regarding assessee being guilty of “other misconduct” prima facie appeared to have been arrived at without properly appreciating the context in which the cheques issued by the assessee were dishonoured. The matter was remanded back to the Appellate Authority for reconsideration of his appeal on merits.
