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Karnataka High Court
Judges : K.S.Puttaswamy
D.L.SURESH BABU - Appellant
Versus
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA - Respondent
Writ Petn 20488 Of 1982
Decided On : 07/05/1982
Chartered Accountants Act - Dispute over rejection of nominations for Central and Regional Councils - Sections 3, 9, 23 of the Chartered Accountants Act, 1949 - The court quashed the rejection of nominations and declared them valid, directing their inclusion in the elections based on the calendar of events issued in accordance with the Act and the Regulations.
Fact of the Case:
The petitioners challenged the rejection of their nominations for the Central and Regional Councils, arguing that the rejection was unauthorized and based on technical grounds. They contended that the rejection was not for a defect of substantial character, which is the only ground for rejecting a nomination paper.
Finding of the Court:
The court rejected the objection to its jurisdiction and held that a part of the cause of action had arisen within its territorial jurisdiction. It also emphasized that the rejection of nominations was for plainly absurd and egregious reasons, and therefore, called for the court's interference. The court also noted that the rejection was contrary to the specific and clear mandate of the relevant regulation.
Issues: The main issues were the rejection of nominations for the Central and Regional Councils and the court's jurisdiction to entertain the petitions.
Ratio Decidendi: The court held that a part of the cause of action had arisen within its territorial jurisdiction, justifying its jurisdiction to entertain the petitions. It also emphasized that the rejection of nominations was for plainly absurd and egregious reasons, contrary to the specific and clear mandate of the relevant regulation.
Final Decision: The court quashed the impugned orders, declared the nomination papers valid, and directed their inclusion in the elections based on the calendar of events issued in accordance with the Act and the Regulations.
( 2 ) THE Chartered Accountants Act, 1949 (Central Act No. 38 of 1949) (hereinafter referred to as the Act) that came into force from 1-7-1949. regulating the profession of Chartered Accountants in the country, incorporates a body corporate called the institute of Chartered Accountants of india (hereinafter referred to as the Institute) (Vide Sec. 3 of the Act ). The management of the institute vests in a general or Central Council (hereinafter referred to as the Central Council ) consisting of 24 persons elected by the members of the Institute from the Regional constituencies to be determined by the Central Government and 6 persons nominated thereto by the said Government (vide Section 9 of the Act ).
( 3 ) IN suppression of the earlier notification, the Central Government by its Notification No. S. O. 1682 dated 13th April, 1973 has constituted five Regional Constituencies as set out below under column No. 1. The number of persons to be elected from the said five constituencies is also set out against them in column No. 2. (See table on next page)
( 4 ) SECTION 23 of the Act enables the Central Council in respect of a constituency determined by the Central Government to advise and assist it in all matters concerning its functions. Not withstanding the same, the Central Council has constituted only 5 Regional councils for the very constituencies determined by the Central Government with representation on those councils as here under : ( a) Western India Regional Council 16 (b) Southern India Regional Council 12 (c) Eastern India Regional council 8 (d) Central India Regional council 5 (e) Northern India Regional council 7
( 5 ) THE term of Central and Regional Councils is three years and the present of the present council is due
Column No. 1 Column No. 2 name of the Regional Constituency. Number of persons to be elected 1. The states of Gujarat and Maharashatra and the union Territories of Goa, Daman and Diu and 8 dadra and Nagar Haveli southern Region 2. The states of Andhara Pradesh, Kerala, Karnataka tamil Nadu and the Union Territories of Pondicherry 6 and the Laccadive Minicory and Amindivi Islands. Eastern Region 3. The states of Assam, Meghayala Nagaland, Orissa, west Bengal Manipur Tripura and Sikkim and the Union territories of Arunachal Pradesh Mizoram and Nicobar islands 4 central Region 4. The states of Uttar Pradesh Bihar Madhya Pradesh and rajasthan 2 northern Region 5. The states of Harayana Himachal Pradesh Jammu and kashmir and Punjab and the Union Territories of Delhi and Chandigarh 4 to expire some time in Sept. , 1982.
( 6 ) IN exercise of the powers conferred by the Act and the Chartered Accountants Regulations. 1964 (hereinafter referred to as the Regulations) to reconstitute the aforesaid Councils before the expiry of their terms, the Central Council by its Notification No. 54- El (1) /1/82, dated 11-1-1982, (Annexure - R2) issued a composite calender of events for holding elections to the central and Regional Councils of the Institute and that Notification reads thus: the institute of Chartered Accountants of India indraprastha Marg, Post Box No. 7110, New Delhi - 110002. ( To be published in part III section 4 of the Gazette of India dated 23rd January 1982) notification (Chartered Accountants) no. 54 EL (1) /1/82; In pursuance of Regulation No. 60 of the Chartered Accountants regulations, 1964, read with sub-regulation (7) of Regn. 112 of the said Regulations, the council of the institute of Chartered Accountants of India is Pleased to notify the following dates relating to the next election of the members to the council and the Regional Councils of the Institute: (see table on next page)
( 7 ) IN response to the aforesaid calendar of events, the petitioners in writ Petitions Nos. 20488 and 20743 of 1982, filed their nominations to the Central Council and Southern India Regional c
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