Case Law Details
Karnavati Cooperative Bank Limited Vs Disciplinary Committee (Gujarat High Court)
Gujarat High Court held that misconduct charges against the auditor not sustained stating the Statute provides remedy of appeal is only available to a member of ICAI against the decision of the Board Discipline or Disciplinary Committee imposing any penalty. The same is not available to the complainant or informant.
Facts- The writ-applicant here in is a Cooperative Bank and the present writ-application is instituted through its Vice President challenging the order passed by respondent No.1 -Disciplinary Committee constituted u/s. 21B of the Chartered Accountants (Amendment) Act, 1949. The writ-applicant Bank herein was the complainant before the Institute of Chartered Accountants of India (ICAI) to the effect that the respondent No.3 herein was appointed as Concurrent Auditor of the writ-applicant Bank from 2004-05.
On the basis of the complaint at the instance of the writ-applicant Bank herein the respondent No.2 conducted an inquiry, prima facie opinion was formed looking into various documents that respondent No.3 was guilty of professional and other misconducts falling within the meaning of Clause (7) of Part-I of the Second Schedule of the Chartered Accountants Act, 1949.
The respondent No.1 herein passed the impugned order dated 23.12.2019 whereby Respondent No.3 herein was held to be not guilty of Professional and any other misconduct and the same has resulted in filing of the present writ-application.
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