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2015 Supreme(Online)(Mad) 49

MADRAS HIGH COURT
S. Manikumar, J
Mr. A. Irudayam – Appellant
Versus
The Institute of Chartered Accountants of India – Respondent
Writ Petition No.1363 of 2012 | W.P.No.1364 of 2012 | W.P.No.1365 of 2012 | W.P.No.1366 of 2012 | W.P.No.1367 of 2012



Public Interest Litigations filed lacked bona fides, as previous roles within the respondent organization compromised the petitioner's claims.

Headnote:(A) Chartered Accountants Act, 1949 - Amendment Act, 2006 - Public Interest Litigation - Petitioner claims violation of fundamental rights of graduates due to improper regulations by the Institute - Court observes petitions cannot be entertained as public interest due to lack of genuine grievance. (Paras 11, 12)

(B) Functions of the Council - Council lacks statutory provision to impart theoretical education to students - Allegations of fee collection under non-existent courses deemed illegal in absence of statutory backing. (Paras 2, 3, 7)

Facts of the case:
The petitioner alleges that the Institute of Chartered Accountants has violated fundamental rights by arbitrary and illegal collection of fees under non-existent courses, claiming violations of the Chartered Accountants Act.

Findings of Court:
The petitioner, having been previously associated with the institute, has not substantiated claims of public interest as petitions lack merit.

Issues: The legitimacy of the fee collection mechanism and whether the petitions represent a genuine public interest issue.

Ratio Decidendi: The court ruled that given the petitioner's history with the institute, the claims presented do not abrogate public interest norms, leading to dismissal of writ petitions.

Result: Writ Petitions dismissed.

Table of Content
1. petitioner alleges arbitrary fee collection. (Para 1 , 2 , 3)
2. respondent defends authority and activities. (Para 4 , 5 , 6)
3. court questions public interest validity of petitions. (Para 7 , 8 , 9 , 10)
4. court dismisses petitions as lacking merit. (Para 11)
5. final ruling on dismissal of petitions. (Para 12)

1. These Writ Petitions designed as Public Interest Litigations have been filed Mr. A. Irudayam, a practising Advocate with varied prayer. The petitioner would state that he served as a Teacher in a Higher Secondary School at Madurai for about 7 = years, thereafter, joined the services of the E.S.I., Corporation where he worked for about 10 years and then joined the second respondent organisation namely The Institute of Chartered Accountants of India as an Assistant Secretary in the Head Office at New Delhi. The petitioner would further state that functioned as the Head of the Southern Region of the second respondent Institute from June 2002 to August 2007 exercising jurisdiction over the Institutes in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Pondicherry. The petitioner would state that he is conscious of the problems faced by the Chartered Accountant students and he has filed these Writ Petitions to seek justice for the student community alleging that their fundamental rights are violated due to arbitrary exercise of power and actions, which are ultra vires the provisions of the Chartered Accountants Act. The petitioner has filed six Writ Petitions for varied prayers, which are set out as hereunder: -
(i) In W.P.No.1363 of 2012 the petitioner has prayed for issuance of a writ of Certiorarified Mandamus, to quash the proceedings of the 2nd & 3rd Respondents relating grant of approval of Regulation 25C notified under Notification No.1 - CA(7) / 92/2006 dated 13th September 2006 published under Gazette of India Extraordinary Part III S.4 dated 13.09.2006 titled as Registration to Common Proficiency Test under a feigned Scheme of non - existent CPT Course, on the grounds of colourable exercise of powers in enacting such regulations lack of competence for regulation making power on the subject matter malafide ultra vires of the Chartered Accountants (Amendment) Act 2006 void ab - initio and in transgression of Rule of Law thus infringing the Fundamental Rights guaranteed under Art.14 in respect of the students joining Chartered Accountancy Course at the entry level and consequently direct the second and third respondents to stop levy and collection of fee in the name of Registration of non - existing CPT course.
(ii) In W.P.No.1364 of 2012 the petitioner has prayed for issuance of a writ of Certiorarified Mandamus, to quash the proceedings of the 2nd & 3rd Respondents relating grant of approval of Regulation 28D of Chartered Accountants Regulations 1988 (Amendment 2006) for issue of Notification No.1 - CA(7) / 123/2008 dated 2nd December 2008 published under Gazette of India Extraordinary Part III S.4 dated 3.12.2008 relating to Integrated Professional Competency Course (IPCC) cum Accounting Technician (ATC) Courses registration levy and collection of fee thereto issued by the 2nd and 3rd Respondents under the approval of 1st Respondent on the grounds of colourable exercise of powers lack of competence of regulation making powers on the subject matter as it is ultravires of Chartered Accountants (Amendment) Act, 2006, void ab initio, arbitrary, malafide, excessive and in violation of Rule of Law thus infringing upon the Fundamental Rights of students of Chartered Accountancy Courses guaranteed under Art.14 of the Constitution with concurrent directions to 2nd and 3rd respondents to stop registering students by way of levy and collection of fee towards the non - existing 'Study Course' under the nomenclature "Integrated Professional Competency Course (IPCC)".
(iii) In W.P.No.1365 of 2012 the petitioner has prayed for issuance of a writ of Certiorarified Mandamus, to quash the proceedings of the 2nd



















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