Shekhar Sharma Vs Institute of Chartered Accountant of India & Anr. (Delhi High Court)
The Delhi High Court examined the validity of an order passed by the Board of Discipline under Section 21(A) of the Chartered Accountants Act, 1949, which had closed a complaint alleging professional misconduct. The Board had rejected the prima facie opinion of the Director (Discipline), who had found inconsistencies and deviations in the conduct of the respondent, including alleged unauthorized access to the complainant’s personal information. However, the Board concluded that the matter related to a family dispute and declined to hold the respondent guilty of misconduct, without providing any detailed reasons.
The petitioner challenged the decision on the ground that the Board failed to assign reasons for disagreeing with the Director’s findings. The respondents argued that no fiduciary relationship existed and that the complaint was motivated by personal grievances. The Court observed that the impugned order contained no reasoning and merely labeled the dispute as familial. It held that there is no prohibition on a spouse filing a complaint if allegations disclose professional misconduct. The Court ruled that the Board was required to give clear reasons for rejecting the Director’s opinion and that the complaint should have been examined on merits.
