TMI Blog2017 (8) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... mmaterial whether any investor was actually mislead. However, the Act of mis-conduct gets completed. In view of the above, we find that the disciplinary Committee has rightly held him guilty for “other mis-conduct” under Section 22 read with 21 of the Act. We do not even find that the recommendation made for removing the name of the Chartered Accountant from the register of the members for a period of three months is in any way illegal or is otherwise disproportionate to the charge he has been found guilty by the disciplinary Committee. We therefore, answer the reference in affirmative confirming the recommendation that the Chartered Accountant Satish Kumar Gupta is guilty of “other mis-conduct” and his name be removed from the regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid charges is proved, he would be guilty of other misconduct under Section 22 read with Section 21 of the Act. All papers relating to the aforesaid information, the reply submitted by the Chartered Accountant with letter framing charges and the written statement as filed by the Chartered Accountant were placed before the Council in accordance with Regulation 12 (11) of the Chartered Accountant Regulations, 1988 in its meeting held in August 2008 at New Delhi. The Council on being prima-facie satisfied that he is guilty of professional/other mis-conduct opined for holding an inquiry in the matter by the disciplinary Committee. The disciplinary Committee conducted the inquiry. The Chartered Accountant participated in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. Heard Sri Vinod Swarup, Senior Counsel appearing for the Institute of Chartered Accountants of India and Sri S.Khan for the Chartered Accountant Satish Kumar Gupta. The documents enclosed with the reference have also been perused. The primary argument advanced from the side of the Chartered Accountant is that he was the Director of the BFL. He had submitted his resignation prior to the issuance of public issue but he continued to be the Director as his resignation was accepted on or w.e.f. 9.9.1997 ie. after the close to the issue. Accordingly, there was no mis-statement in the prospectus and no one was misled. No public money was received by the BFL and therefore there was no question of misleading investors and inducing them to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accountant could have appeared in the prospectus to the aforesaid public issue only if he had continued to be the Director of the BFL. It is therefore necessary to determine as to when he resigned or his resignation came into effect. In Service Jurisprudence it is settled that resignation is a bilateral and is a voluntary act of relinquishment of office. The resignation becomes effective only when it is accepted by the competent authority and the person resigning can withdraw it before it is accepted unless there is an express provision to the contrary. In the Indian Companies Act, 1856 there is no specific provision relating to resignation of a Director of the company. None of the parties have placed on record either the Memorandum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Single Judge of that Court in Renuka Ramnath Vs. Yes Bank Limited decided on 18.7.2012. It was held that the Companies Act is silent about the resignation of any Director. Therefore, the resignation is to be governed by the common law principles and would come into effect from the date of submission of the resignation. In other words, the resignation of a Director of company takes effect from the moment the resignation is sent and is acknowledged by the company. In Mother Care (India) Ltd. Vs. Prof. Ramaswamy P. Aiyar ILR 2004 Karnataka 1081 a learned Single Judge of the Karnataka High Court following Glossop Vs. Glossop (Supra) come to the conclusion that once a resignation letter is submitted to the Board, the date on whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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