Disciplinary proceedings against a professional cannot proceed without clearly defined charges, especially when criminal proceedings are ongoing; failure to follow natural justice principles renders the proceedings invalid.

ORDER :

E.S. INDIRESH, J.

1. In this Writ Petition, the petitioner is assailing the order dated 10.02.2018 (Annexure-A) issued by the Institute of Chartered Accountants of India - respondent herein.

2. It is the case of the petitioner that, the petitioner is a Chartered Accountant having experience of more than four decades. It is further stated that, the CBI has filed charge sheet against the petitioner along with one Mr. Nagaraj, an Income Tax Officer (for short, ITO) under the provisions of the Prevention of Corruption Act, 1988 (for short, 'the PC Act') in Spl. CC. No.130/2013 which is pending consideration before the Special Court of CBI Offences. It is further pleaded in the Writ Petition that, the petitioner has allegedly collected money from one Mr. A.K. Halim, to be paid as bribe to the said ITO and in this regard, charges were framed against the petitioner and the said Mr. Nagaraj - ITO, under Section 120B of IPC and Sections 7 , 8, 13(2) read with Section13(1)(d) of the PC Act. It is also stated that the charges levelled against the petitioner under , 13(2) and 13(1)(d) of the PC Act were dropped subsequently, however, the proceedings continued in respect of the remaining charges levelled against the petitioner. In respect of the dropping of the proceedings as stated above, the respondent herein had filed Criminal Revision Petition No.1040/2014 before this Court, which came to be dismissed on 13.09.2017.

3. It is further stated in the Writ Petition that, the CBI, lodged complaint to the competent authorities, under the provisions of the Chartered Accountants, (Procedure of Investigations of Professional and other Misconducts and Conduct of Cases,) Rules, 2007 (hereinafter referred to as 'the Rules, 2007') as per Annexure-B to the Writ Petition. The allegations made in the complaint at Annexure-B, that the petitioner has collected money from Mr. A.K. Halim as professional fees, purportedly in violation of the fees structure prescribed under clause 7.7 of Chapter 7 of the Code of Ethics of the Institute of Chartered Accountants of India.

4. It is further stated that, pursuant to the notice issued by the respondent for appearance of the petitioner herein, the Directorate of the respondent formed a prima facie opinion that the petitioner is guilty of "other misconduct" as per Clause (2) of part IV of the First Schedule to the Chartered Accountants Act, 1949 (for short, 'the C.A. Act'), as per Annexure-C to the Writ Petition. Based on the prima-facie opinion formed by the Disciplinary Directorate, an enquiry was initiated against the petitioner, directing the petitioner to file his defence, as per Annexure-D to the Writ Petition. Pursuant to the issuance of Annexure-D, the petitioner has filed application seeking stay of further proceedings by the respondent on the ground that a criminal case in Special Court of CBI is pending consideration on the identical facts and circumstances, and in this regard the petitioner has filed written arguments as per Annexure-F the Writ Petition. However, the petitioner has received notice, as per Annexures-G and H, to participate in the proceedings. It is the grievance of the petitioner that, though the application filed by the petitioner seeking stay of the proceedings was pending consideration before the respondent, however, the respondent proceeded with the proceedings, and as such, the petitioner filed W.P.No.42659/2017 before this Court, seeking quashing of the disciplinary proceedings initiated by the respondent against