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K. R. SHRIRAM, NEELA GOKHALE
Institute of Chartered Accountants of India – Appellant
Versus
Manakchand Laxman Baheti – Respondent
JUDGMENT
Dr. Neela Gokhale, J. - This is a reference made by Petitioner-The Institute of Chartered Accountants of India under the provisions of Section 21(v) of the Chartered Accountants Act, 1949 (pre-amended as applicable to the present case) against Respondent, viz., the Chartered Accountant concerned. The Institute received a complaint dated 28th July 2006 from the Superintendent of Police, CBI, Bank Securities and Fraud Cell, Mumbai (' Complainant') informing the Institute that Respondent had assisted various companies in availing credit facilities of huge amounts from various banks by issuing false documents certifying valuation of work undertaken and completed by the accused companies. Complainant also alleged that Respondent had also certified the sales registers and list of supply bills of the accused companies without verifying facts and figures to facilitate loans being sanctioned to the said companies.
2. The Institute called upon Respondent to send his response and by a written statement dated 9th July 2007, Respondent defended himself by referring to the complaint as frivolous, without offering any documentary evidence and even went on to refer to the complaint as being
Chartered accountants must exercise due diligence and integrity in their professional duties, and failure to do so constitutes professional misconduct under the Chartered Accountants Act, 1949.
Chartered Accountants must exercise due diligence and integrity in their professional duties, and failure to do so constitutes professional misconduct under the Chartered Accountants Act, 1949.
![Chartered Accountants Act, 1949 [Prior To Amendment Act, 2006] VS CA Shri Subhajit Sahoo - 2024 Supreme(Del) 850](https://supremetoday-s3.b-cdn.net/Delhi_3.png)
Professional misconduct under the Chartered Accountants Act includes gross negligence in duties, requiring due diligence in verification of financial documents.
The Council must independently assess findings from a Disciplinary Committee regarding professional misconduct, ensuring proper application of mind and consideration of all representations before mak....
The court upheld the disciplinary action against a Chartered Accountant for misconduct, emphasizing the need for integrity and professional standards in the profession.
The main legal point established in the judgment is that while the respondent was found guilty of professional misconduct, the court considered the respondent's long-standing membership and lack of p....
The final decision on the action against the petitioner is appealable to the Authority under Section 22G, and the court provided interim protection for the petitioner to approach the Appellate Author....
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