Inordinate delay in disciplinary proceedings denies fair defence opportunity, warranting quashing.

ORDER

The present Writ Petition has been filed challenging the decision of the Disciplinary Committee to proceed further against the petitioner by initiating Disciplinary Proceedings in connection with the alleged professional misconduct.

2. The petitioner is a Senior Citizen aged about 72 years and a retired Chartered Accountant who has been leading a retired life since 2017. He was formerly a partner in a reputed audit firm namely M/s.Deloitte Haskins & Sells (“DHS”) and had served as a statutory auditor of Subhiksha Trading Services Limited (“STSL”) for the period from 2002-03 to 2006-07. It is the specific case of the petitioner that, during the said period, he neither conducted audit of the said Company nor was he associated with STSL in any other capacity. However, an order came to be passed by the Ministry of Corporate Affairs (MCA”) on 23.07.2010 directing an investigation into the affairs of the STSL which was subsequently entrusted to the Serious Fraud Investigation Office (SFIO) under the provisions of Companies Act, 1956.

3. Pursuant thereto, after conducting a detailed investigation upon issuing a due notice to the petitioner, the SIFO submitted its investigation report to the 1^st respondent vide letter dated 14.07.2017 which was thereafter forwarded to the 2^nd respondent. Based on the said report, the 2^nd respondent passed the present impugned order dated 25.11.2024 holding the petitioner guilty of professional misconduct in his capacity as Statutory Auditor for the period from 2002-03 to 2006-07. Consequently, the impugned communication dated 19.02.2025 was issued stating that disciplinary proceedings would be initiated against the petitioner in respect of the alleged professional misconduct with reference to the aforesaid order dated 25.11.2024. Challenging the aforesaid orders as to the initiation of disciplinary proceedings, the petitioner has come forward with the present Writ Petition.

4. When the matter is taken up, learned senior counsel appearing for the petitioner submitted that the issue involved in the instant Writ Petition is no longer res integra squarely covered by the order passed by the Division Bench of this Court in W.A.No.1663 of 2023 dated 12.10.2023 wherein, it is held that initiating disciplinary proceedings against the delinquent would not be appropriate in view of the inordinate delay in conducting the enquiry relating to the alleged professional misconduct and accordingly, the learned counsel prayed for similar relief.

5. Heard the learned counsel for the respondents on the aforesaid contention.

6. For better appreciation, this Court deems its appropriate to extract the relevant paragraphs of the order passed in W.A.No.1663 of 2023 dated 12.10.2023, wherein in a similar circumstances, the Division Bench of this Court has held as under:-

“11. In support of his submissions, the learned Senior counsel relied upon the judgment of a learned Single Judge of the High of Court of Delhi in Wholesale Trading Services P. Ltd., Vs. Institute of Chartered Accountants of India and Ors.² , more specifically relying upon paragraph No.18 of the said judgment.

12. We have considered rival submissions made on either side and perused the material records of the case. In matters of disciplinary proceedings: (I) If there is an inordinate and unexplained delay in initiation of the disciplinary proceedings; (ii) if there is an undue delay in conduct of the disciplinary proceedings; (ii) if the delay results in prejudice to the delinquent employee disabling him from mustering such evidence at his command to persuade the disciplinary authority to come to the conclusion that he is not guilty of the delinquency complained; (iv) or if by the huge efflux of time he is