Bhaskar Bhattacharya, J.

This is a reference under Section 21 of the Chartered Accountants Act, 1949 (“Act”).

The facts giving rise to presentation of the present reference may be summed up thus:

a) In a complaint verified on 9th February, 1994 the Registrar of Company, West Bengal, made the following allegations against D.K. De, Partner of M/s. Dey Dutta Lunawat & Co., Chartered Accountants, Calcutta, the respondent in these proceedings:-

“The Respondent undertook the audit of M/s. Sunbeam Trading Company Pvt. Ltd. for the period ended 31.3.1989 with the full knowledge that his partner Shri K.C. Lunawat is a director in the said Company and as per Section 226(3) © of the Companies Act, 1956 he being a partner/of an officer [which includes a Director under Section 2(30) of said Act] was not qualified for appointment as auditor of the said Company. The Respondent has made a statement in his audit report about the true and fair view of the state of affairs of the Company without disclosing his own and his Partner Shri K.C. Lunawat’s interest in the said Company. As per the annual return made up to 24.9.1990 of the said Company duly signed by Shri K.C. Lunawat as a Directo