CA Reprimanded by ICAI for Breach of Partnership Terms, Defamation, and Unauthorized Recording [Read Order]

The Institute of Chartered Accountants of India (ICAI) has recently taken stringent action against a chartered accountant respondent following complaints of multiple professional misconducts including breach of partnership terms, defamation, and unauthorized recording during proceedings.

The complaint was lodged by a fellow professional, herein referred to as the complainant, who raised serious allegations against the respondent. The accusations primarily centered on violations of the terms of an established partnership agreement, which governs professional conduct and collaboration among partners within accounting firms.

In addition to the breach of partnership terms, the complainant accused the respondent of defamation, alleging that false and damaging statements were circulated with malicious intent to harm the reputation of the complainant. The matter was further aggravated by the respondent’s unauthorized act of recording conversations and proceedings without consent, raising significant concerns about breach of confidentiality and trust.

The ICAI’s disciplinary committee thoroughly evaluated the complaints, invoking specific regulations under the Chartered Accountants Act of 1949, particularly focusing on the code of ethics and professional conduct expected from members. The investigative process included hearings where both parties presented their cases, and the committee carefully assessed the evidence and representations.

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Under the Chartered Accountants Act, 1949, several provisions address professional misconduct. Notably, breaches related to partnership terms fall under guidelines ensuring professional integrity and cooperation. Defamation and unauthorized recording contravene clauses that emphasize respect for confidentiality, reputation, and ethical behavior among members.

The ICAI’s disciplinary committee thoroughly evaluated the complaints, invoking specific provisions under the Chartered Accountants Act, 1949. The respondent was found guilty under Items (5), (6), (7), and (8) of Part I of the Second Schedule and Item (2) of Part IV of the First Schedule of the Chartered Accountants Act, 1949. Consequent to the findings, the disciplinary committee found the respondent guilty of professional misconduct. Actions taken included formal reprimand and directives to uphold confidentiality and professional decorum strictly. The case underlines the ICAI’s unwavering commitment to maintaining high standards of ethics and accountability within the chartered accountancy profession.

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