Delhi HC to decide Issue Barring Chartered Accountants from Practicing on the ground of Criminal Antecedents

CA - CA in Practice - Delhi High Court - Chartered Accountants - Criminal Antecedents - Practicing on the ground - CA - Taxscan

The Delhi High Court may pronounce a significant ruling for the Chartered Accountant fraternity as the Court has admitted an appeal regarding the issue of whether a Chartered Accountants can be barred from Practicing on the ground of criminal antecedents.

The appellant, a Chartered Accountant has challenged an order of the Single Judge, Justice Pratibha M Singh, holding that a person, being a Chartered Accountant, when convicted for commission of an offence involving ‘moral turpitude, shall be liable to be removed from membership of Institute of Chartered Accountants of India. The order also recommended ICAI to create a framework wherein there is proper disclosure by candidates who apply to become Chartered Accountants, at the inception itself.

The Division Bench of Acting Chief Justice Vipin Sanghi and Justice Navin Chawla issued notice on the appeal and directed the Appellant to file complete records of the case within 4 weeks. It however refused to stay the single judge order, which had upheld the show cause notices issued by the ICAI to the petitioner under Section 8 of the Chartered Accountants Act, 1949, subsequent to his conviction by the High Court under Sections 354 and 506-II of the IPC.

“Appeal is admitted. Issue Notice. At this stage, we are not inclined to stay in the operation of the impugned judgment. The respondent may undertake proceedings in respect of the show cause notice issued by them. Appellant shall have the liberty to move an application once an order on show cause is passed,” the Court said.

Coming to the facts of the case, a qualified Chartered Accountant, enrolled with ICAI since 25th January 2008. He was aggrieved by the show cause notice issued under Section 8 of the 1949 Act. He argued that from an interpretation of Section 8(v) of the Act, it is clear that ‘moral turpitude’ under the said section, would only include such offences which are committed in a professional capacity or have a nexus with the profession, and not otherwise.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

taxscan-loader