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VAIBHAVI D. NANAVATI
Karnavati Cooperative Bank Limited – Appellant
Versus
Disciplinary Committee – Respondent
JUDGMENT :
1. The writ-applicant herein is a Cooperative Bank and the present writ-application is instituted through its Vice President challenging the order passed by the respondent No.1 - Disciplinary Committee constituted under Section 21B of the Chartered Accountants (Amendment) Act, 1949. The writ-applicant Bank herein was the complainant before the institute of Chartered Accountants of India (ICAI) to the effect that the respondent No.3 herein was appointed as Concurrent Auditor of the writ-applicant Bank since 2004-05. During financial year 2007-08 and 2008-09 the respondent No.3 as stated by the writ-applicant herein in the complaint dated 10.6.2013 without actual verification of cash, gave a clean report for number of months and due to aforesaid action of the respondent No.3, cashier of the writ-applicant Bank misappropriated cash to the tune of Rs.43,00,000/-. On the basis of aforesaid complaint at the instance of the writ-applicant Bank herein the respondent No.2 conducted an inquiry, prima facie opinion dated 1.8.2015 was formed looking into various documents that the respondent No.3 was guilty of professional and other misconducts falling within the meaning of Clause (7
Disciplinary proceedings against a Chartered Accountant must adhere to principles of natural justice and be based on clear evidence; arbitrary conclusions without cogent reasoning are invalid.
The availability of an alternative remedy does not bar the filing of a petition under Article 226 of the Constitution of India, especially in cases involving a violation of the principle of natural j....
The main legal point established in the judgment is that charges of misconduct proved in a departmental inquiry can lead to dismissal from service, and the court will not interfere if there is no ill....
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....
The court confirmed that disciplinary authorities possess broad discretion in imposing penalties, which cannot be interfered with unless shown to be arbitrary, perverse, or in breach of natural justi....
Disciplinary proceedings can uphold dismissal if conducted within legal guidelines and following natural justice principles, despite claims of insufficient defense.
The court emphasized the bank's loss of confidence in the appellant and upheld the punishment of compulsory retirement, citing the appellant's failure to follow banking procedures and exercise honest....
Grant of reinstatement - Court will not ordinarily interfere in the punishment imposed in the disciplinary proceedings to substitute its own conclusion on penalty except where the punishment imposed ....
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