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ICAI ought to Specify Reasons to Complainant on Closure of Case of Misconduct against Chartered Accountant: Delhi HC [Read Judgment]

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The Delhi High Court held that the Institute of Chartered Accountant of India (ICAI) ought to specify reasons to the complainant on the closure of the case of misconduct against the member.

In the case of Trideep Raj Bhandari vs. Institute of Chartered Accountant of India (ICAI), it was held that the Institute of Chartered Accountant of India (ICAI) is under the obligation to elaborate on the reasons to the complainant, in the cases where it concludes that its member is not guilty of misconduct.

The petitioner invested in a company named First Leasing Company of India Limited. The petitioner filed a complaint against the Internal Auditor of a company on the account of misconduct and the complaint was filed at the Institute of Chartered Accountant of India (ICAI). Later on, after undertaking the investigation the Institute of Chartered Accountant of India (ICAI) closed the complaint against the Internal Auditor. The petitioner filed a grievance that no reasons were stated by the Institute of Chartered Accountant of India (ICAI) for closing the complaint.

The  Institute of Chartered Accountant of India (ICAI) contended that it was a private matter as the preceding took place between the institute and its members.

The issue raised in this case was whether, while closing the complaint against the member, the Board of Discipline has to communicate the reasons for the same to the complainant or not?

The single judge of the High Court of Delhi consisting of Justice Navin Chawla held that the Institute of Chartered Accountant of India (ICAI) is under the obligation to elaborate on the reasons to the complainant, in the cases where it concludes that its member is not guilty of misconduct.

Therefore, the court directed the Institute of Chartered Accountant of India (ICAI) to communicate the reasons within a period of 2 weeks.

To Read the full text of the Judgment CLICK HERE
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