Dipak Misra, C.J.

1. Keeping in view the similitude pertaining to the legal controversy in both the appeals, despite the fact that there is a slight difference in the factual matrix, these appeals were heard together and are being disposed of by a common order. For the sake of clarity and convenience, the facts from LPA No. 886/2010, which arises from the order passed in WP(C) No. 2205/2010, shall be exposited for the purpose of adjudication.

2. The Appellant, a chartered accountant and a member of the Institute of Chartered Accountants of India (ICAI), was a partner of M/s Price Waterhouse (M/s PW), a firm of Chartered Accountants registered with ICAI. In the year 2000, the firm was appointed as the statutory auditors of M/s Satyam Computer Services Ltd. (SCSL). The statutory audits of SCSL for the years 2001 to March, 2007 were conducted and the reports were signed by Mr. Subramani Gopalkrishnan, the Appellant in LPA No. 885/2010 [the Petitioner in WP(C) No. 5352/2010]. The statutory audit for the quarters ending 30th June, 2007 and 30th September, 2008 were conducted and signed by Mr. Talluri Srinivas, the Appellant in LPA No. 886/2010. As the factual matrix would further unfurl, on 7th January, 2009, Mr. B. Ramalinga Raju, the then Chairman of SCSL, in a communication send to the Board of Directors, disclosed that the balance sheet of SCSL as on 30th September, 2008 carried inflated (non-existent) cash and bank balances of Rs. 5,040 Crores (as against Rs. 5361 Crores reflected in the books) and accrued non-existent interest of Rs. 376 Crores. The liability was understated to the extent of of Rs. 1230 Crores on account of funds arranged by him and the accounts overstated the debtors position by Rs. 490 Crores (as against Rs. 2651 crores reflected in the books). Quite apart from the above, there were many other disclosures which eventually led to his arrest and a criminal trial which we shall refer to at a later stage.

3. On 10th January, 2009, the ICAI corresponded with M/s PW, Bangalore, referring to the letters of Mr. Raju, the Chairman of SCSL, that the said firm had failed to carry out necessary checks which were required while undertaking the audit of the financial statements and certifying the quarterly results of the company. The ICAI alleged that the firm had violated the accounting principles while auditing and certifying the accounts/quarterly results of SCSL for the aforementioned years and quarters and did not give a true and fair view of the accounts and further did not exercise due diligence and were negligent in their professional duties as statutory auditors. The ICAI treated the newspaper report as information within the meaning of Section 21(2) of the Chartered Accountants Act, 1949 [as amended by the Chartered Accountants (Amendment) Act, 2006 which came into effect from 17th November, 2006] (for brevity "the CA Act?). M/s PW was called upon to disclose the name or names of the member or members who was/were answerable to the allegation/s and send a copy of the aforesaid information letter along with its enclosures to the said member/members and he/they be requested to send his/their written statement, if any, in triplicate within 21 days from the receipt of the letter. It was also stipulated in the said letter that the member or members who are answerable should also send a declaration duly signed in the enclosed format and in the event the name(s) of the member(s) answerable was not disclosed, all the members who were partners or employees of the firm on the date of occurrence of the alleged misconduct shall be responsible for answering the allegation or allegations contained in the information. After certain correspondences, on 30th January 2009, M/s PW replied to the ICAI stating, inter alia, that the key members were Mr. S. Gopalakrishnana, Mr. S. Talluri, Mr. P. Shiva Prasad and Mr. C.H. Ravindranath. M/s PW informed that Mr. S. Gopalakrishnan and Mr. Srinivas had been arrested by the local pol