BIREN VAISHNAV, J.

1. This is a Reference made under Section 21(5) of the Chartered Accountants Act, 1949 (“The Act” for short). The Reference has been made by the Council of the Institute of Chartered Accountants of India (“Council” for short) in respect of a disciplinary proceeding held against the Respondent, a Professional Chartered Accountant. The Council, on consideration of the report of the Disciplinary Committee, found him guilty of certain misconduct and decided to recommend to this Court that the name of the respondent be removed from the Register of Members for a period of two years.

2. The Reference arises in the following background of facts:

2.1 The case pertains to an audit carried out by the firm of the respondent with regard to the Madhavpura Mercantile Cooperative Bank Ltd.(‘MMCB’ for short). The Madhavpura Mercantile Cooperative Bank is registered under the Multi State Cooperative Societies Act, 1984. Audit for the Year 1998- 1999 was allotted by the Registrar of Societies to the respondent firm in order to see whether the affairs of the Bank were c