The Disciplinary Committee of the Institute of Company Secretaries of India ( ICSI ) has dropped the professional misconduct allegations against a Company Secretary for misstatement in an affidavit filed before CLB on the ground that no supporting evidence was submitted to prove the guilt.
A complaint was lodged against the respondent, a Company Secretary, alleging that he has made contrary statements under his signature in his professional capacity while signing the Annual Returns and on Oath before a quasi-judicial authority. While signing Form 20B he has confirmed the fact of share transfer to the Complainant so also in his letter. But in his affidavit, he has denied the same. The Complainant further stated that he has not received any reply to the letters sent by him to the Respondent for clarification on his Affidavit which deviates from the facts. The Complainant further alleges that the Respondent has failed to take into account the above facts, anomalies, and deficiencies and has acted in a careless and negligent manner not befitting to a professional.
After hearing the rival contentions, the Disciplinary Committee observed that it was not a case of the Complainant that the Annual Return was improperly certified by the Respondent but a misstatement in an affidavit filed by the Respondent before the CLB, Mumbai. The Disciplinary Committee further observed that the Complainant has failed to place any material evidence to show that the transfer deeds in question were signed in the presence of the Respondent apart from a letter dated 3rd February 2010 addressed to the Respondent by the Complainant which is also signed by the Respondent beneath the signature of the Complainant.
The Respondent, in his defense, said that he was forced to sign the said letter backdated and hence he had revoked the said letter vide email dated 11th March 2010. The Respondent further stated that he has also mentioned the said letter in the affidavit in para 3.
The Committee further observed that there is another email dated 5th March 2010 of the Complainant on record addressed to the Respondent where it has been inter-alia stated that the Respondent was the External Company Secretary at the time of transfer of shares of certain companies including M/s. Zerostart Trading Pvt. Ltd. In the said email the Respondent was asked to approve/confirm the transfers of shares of M/s. Zerostart Trading Pvt. Ltd. The question arises that in case the Respondent has already confirmed the transfer of shares vide letter dated 3rd February 2010 in the companies referred to therein then why will the Complainant sent an email dated 5th March 2010 to the Respondent once again asking him to confirm the transfers without even mentioning about the letter dated 3rd February,2010.
“In the absence of any material evidence to show that the transfer deeds in question were signed in the presence of the Respondent the question of misstatement in the affidavit does not arise,” the disciplinary committee said.
Subscribe Taxscan Premium to view the Judgment
