TMI Blog2017 (2) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... nted by: Ms. Manita Verma, Advocate with Ms. Riha Deb and Mr. Prateek Gaurav, Advocates PRADEEP NANDRAJOG, J. 1. The Institute of Chartered Accountants has made the instant Reference under Section 21(5) of the Chartered Accountants Act, 1949 in respect of the respondent being indicted for a misconduct other than such misconduct which is referred to in sub-Section (4) of Section 21. It needs to be noticed at this stage that with respect to the misconduct for which the respondent has been indicted falling within sub-Section (4) of Section 21 the penalty levied : of removal of the name from the Member of Register for a period of six months was challenged by the respondent in Chat.A.C.No.5/2012 which he withdrew. Thus, we shall be referring to such facts as would be relevant to decide the present Chat.A.Ref. 2. If we affirm the findings returned by the Disciplinary Committee constituted by the Institute of Chartered Accountants which has been accepted by the Council, the charge proved would be that of a misconduct. 3. A complaint was received from the Punjab National Bank alleging that the respondent : a practicing Chartered Accountant, had incorporated three companies a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Competent Jurisdiction in which amongst others, the respondent was named as an accused. 7. The report of the Disciplinary Committee was considered by the Council which referred the matter to the Disciplinary Committee for further inquiry and to submit a complete report. 8. In the remanded proceedings the respondent was heard. The Committee gave its report on February 02, 2009 and the findings are in paragraphs 13 to 23 of the report which read as under:- 13. The Committee noted that the respondent was signing the Balance Sheet of various companies i.e. M/s. G.K. Consultants Limited, M/s. Seeroo Foods Private Limited, M/s.Radha Raman Plastic Concern Ltd. etc. in the capacity of as a Director of the said Companies. Further, it is an admitted fact that the respondent was also operating the bank account of the Companies. 14. The Committee noted that and it is an admitted fact that the respondent was Director in several companies i.e. M/s.Seeroo Foods (p) Ltd., M/s.Nirogi Charitable Medical Research Ltd., M/s.G.K.Consultant Ltd. etc. However, the respondent have taken permission from the Institute to be a Director only in one Company i.e. M/s. G.K. Consultant L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. The Committee noted that the criminal suit is still pending in the Court and the charges have not been framed despite the fact that more than 9 years have elapsed. The Committee noted that the Respondent s contention was that he was given clean overdraft based on the creditworthiness of the Companies and he has not furnished any wrong document. 20. The Committee observed that the contention raised by the Respondent is not at all tenable as the charge sheet which has been filed by the CBI wherein the Respondent is one of the accused along with others, namely, Deepak Kumar Nayyar, Manager, Punjab National Bank, (under suspension). It has been pointed out in the charge-sheet that Nirogi Charitable Medical Research Trust was neither availing any credit facility/loan nor there was any OD account in the name of the said Society in the Punjab National Bank, Kamla Nagar Branch, Agra. Further, it was mentioned that Mr.Deepak Kumar Nayyar, Manager, Punjab National Bank had abused his position as Branch Manager by conspiring with the respondent to cause wrongful loss to the Bank and wrongful gain to themselves by fraudulent means and in furtherance of the said conspiracy, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he then branch Manager and enjoyed the clean overdraft facility without any security. Therefore, the Committee is of the view that the Respondent is guilty of Other Misconduct under Section 22 read with Section 21 of the Chartered Accountants Act, 1949. 9. Considering the report of the Disciplinary Committee the Council held that the respondent was : (a) guilty of professional misconduct falling within the meaning of Clause (11) of the Part 1 of the 1st Schedule to the Chartered Accountants Act, 1949; (b) guilty of other misconduct under Section 22 read with Section 21 of the Chartered Accountants Act, 1949. Pertaining to the respondent being held guilty of other misconduct the Council decided to recommend to the High Court that the name of the respondent be removed from the Register of Members for a period of two years. 10. At the hearing held by us on February 14, 2017 learned counsel for the respondent urged that the respondent was an honorary director in the three companies : M/s.Seeroo Foods Pvt. Ltd., M/s.G.K.Consultant Ltd. and M/s.Jagrook Builders Pvt. Ltd. and associated in an honorary capacity with the trust : M/s.Nirogi Charitable and Medical Research Trust. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings relate to the charge of the respondent being a Chartered Accountant and without permission from the Institute of Chartered Accountant acting as a director in various companies. No doubt the professional misconduct encompasses the acts of cheating, but that was the subject matter of a separate indictment against which the appeal filed by the respondent in this Court was withdrawn. 16. To bring home one illustrative point as to how the respondent was involved, overlooking the names of the persons who were responsible, for the reason this would relate to the charge of conspiracy, evidence shows that on advise from Foreign Exchange Office of PNB, two FDRs under FCNR Account No.12 were issued in sum of ₹ 99,62,526/- and ₹ 47,34,921/- in the name of Tajinder Singh Sahni and Mrs.Jasbeer Kaur Sahni. Two parallel sets of FDRs in same amount were also issued but pertaining to FCNR Account No.11. The modus operandi was to tag the name of Mrs.Jasbeer Kaur Sahni, wife of Surinderpal Singh and that of Tajinder Singh Sahni. The actual beneficiaries ought to have been Tajinder Singh and Jasbeer Kaur. A document was then introduced in the record, allegedly pointing out afo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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