In a recent order in Council of Institute of Chartered Accountants of India v. Deepak Gupta, the two-judge bench of the Supreme Court observed that the proved misconduct by a Chartered Accountant at the time he holding the Certificate of practice is a punishable offence.
The bench comprising Justice RK Agrawal and Justice AM Sapre was hearing an appeal preferred by the council.
Earlier, the High Court of Madhya Pradesh had disposed the Reference by holding that the respondent had ceased to be a Member of the Institute as he had surrendered his certificate.
The bench however, refused to interfere with the order of the High Court. “On the question as to whether a practicing Chartered Accountant while he holds the certificate of practice issued by the Institute of Chartered Accountants of India would be liable for punishment for any misconduct committed during the existence of certificate, we are of the considered opinion that if the misconduct is proved, such person would be liable for appropriate punishment.”
With the above findings, the bench, dismissed the appeal with a specific direction that “However, in the facts of this case, it is made clear that the dismissal of this Appeal shall not be treated as a precedent.”
Read the full text of the order below.
