TMI Blog2013 (10) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... Board and request of the complainant that he does not press the complaint were not in the knowledge of the disciplinary committee and the council. The two documents, in fact, form part of the report of the disciplinary committee. No reasons have been given for ignoring the settlement and as regards request of the complainant not to press the complaint - Neither the disciplinary committee nor the council has referred to the evidence on the basis of which the charge is stated to have been proved. Finding of the disciplinary committee and decision of the council, therefore, are found to be perverse and not backed by evidence - Appeal dismissed. - Civil Reference No. 1 of 2012 - - - Dated:- 17-7-2013 - SATISH KUMAR MITTAL AND MAHAVIR S. CHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Misconduct with respect to charges as mention in Paras 1.2.3 (a)(b)(c), 1.2.4 and 1.2.7 of the Report; (b) guilty of Professional Misconduct with respect to charges as mentioned in paras 1.2.1 and 1.2.2 of the Report, falling within the meaning of Clause (9) of Part 1 of the First Schedule read with Sections 21 and 22 of the Chartered Accountants Act, 1949; and (c) guilty of Professional Misconduct with respect to the charge as mentioned in para 1.2.6 of the Report falling within the meaning of Clause (7) of Part 1 of the Second Schedule read with Sections 21 and 22 of the Chartered Accountants Act, 1949." In respect of the misconduct at serial No. (b) above, the Council decided to afford to the contesting respondent an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notice in terms of sub-section (4) of Section 21 of the Act has been decided to be issued to the contesting respondent as regards the misconduct at serial No.(b) because this misconduct falls in Schedule-I appended to the Act and the instant reference is made for confirmation of punishment of removal of name of the contesting respondent from the register of members of the Institute for a period of one month as regards the misconduct at serial No.(c) because this misconduct falls in Part-II Schedule-I of the Act. In the instant reference, we are not concerned with the misconduct at serial No.(b). What we are concerned with is the misconduct at serial No.(c). It pertains to the charge as mentioned in paragraph 1.2.6 of the report of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of hearing. Not only this, the disciplinary committee has annexed with its report Annexure D, which is a letter written by the complainant to the Institute of Chartered Accountants of India (the petitioner) saying that with reference to the above captioned matter he did not wish to press the charges in the above complaint. The report also contains a communication from Company Law Board. It says "In terms of the order dated 17.02.06 the Respondents having paid Rs.9.10 Lacs in various instalments and have today deposited pay order for Rs. 12.90 Lacs out of the balance of Rs. 22.00 Lacs to the petitioners. Since full payment of Rs.22.00 Lacs has been made. All the shares held by the petitioner group will vest in Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sclose in his main Audit report about the violation of the Accounting Standards and also deviation about the same. Moreover, the Respondent failed to invite the attention of the members to the fact that the Company did not provide Depreciation in the Books of Account, further, mentioning in the notes to the Accounts that the Company did not provide depreciation is not proper way to draw the attention of the Shareholders. The onus lies on the Respondent as auditor to draw the attention of the shareholder about the same in his audit report by way of a note. It is apparent that the Respondent did not carry out his duties diligently and failed to invite the attention of the Members to the violation of the Accounting Standards. Therefore, the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bstantiated. The disciplinary committee and the Council have failed to disclose on what basis the charge against the contesting respondent was said to have been proved. It is rather amazing to note that the complainant having settled the dispute with the contesting respondent before the Company Law Board, did not appear before the disciplinary committee and the Council. The Company Law Board, however, conveyed to the petitioner that in view of the settlement between the complainant and the contesting respondent nothing survived in the complaint but the disciplinary committee and the Council still proceeded with the complaint for reasons best known to them and came to a conclusion that the charge had been proved even without any evidence bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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