Spouse’s Complaint Maintainable in CA Misconduct Cases: Delhi HC Rejects ICAI’s Narrow Approach [Read Order]

In a recent ruling, the Delhi High Court clarified that a professional misconduct complaint against a Chartered Accountant (CA) cannot be ignored just because it involves a "family dispute." The court said that the complaint is maintainable if it discloses serious professional misconduct.

In the present matter, a spouse filed a complaint against a CA. Initially, the Director (Discipline) under the Chartered Accountants Act, 1949, found merit in the claims.

However, the ICAI’s Board of Discipline disagreed and closed the file, arguing that since the root of the problem was a family matter, it did not belong in their jurisdiction.

The petitioner challenged this, pointing out that the Board never explained why they rejected the Director’s initial findings.

Justice Purushaindra Kumar Kaurav found the ICAI approach legally flawed. The judge noted that the Director (Discipline) had already pointed out specific inconsistencies and deviations from professional standards including serious claims that the CA accessed personal information without consent.

While the Board dismissed the case as "family-related," the Court noted they failed to address the actual substance of these professional red flags.

The Court said that “There is no such prohibition to entertain a complaint at the instance of spouse, if it discloses professional misconduct. The complaint must have been taken to its logical conclusion by assigning appropriate reasons which has not been done in the instant case. The only reason that the complaint relates to a family dispute cannot be countenanced, when the allegations are made against the Chartered Accountant for violation of statutory norms.”

The Board of Discipline, while disagreeing with the Director’s prima facie opinion, is obligated to provide clear and cogent reasons, said the bench.

Accordingly, the Delhi High Court scrapped the Board’s previous decision and sent the case back to the ICAI. The institute has been ordered to take the complaint afresh after providing hearing opportunities and as per law.

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