ivil Appeal No 4437 of 1990
From the Order dated 3061990 of the Disciplinary Committee of the Bar Council of India in BCI TR Case No 127 of 1988
Satish Chandra VB Joshi and Umesh Bhagwat for the Appellant
Respondent in person NP The Judgment of the Court was delivered by G N Ray J
This Civil Appeal is directed against the order dated June 30 1990 passed by the disciplinary Committee of the Bar Council of India under Section 36B of the Advocate Act 1961 in BCL Tr
Case No 127 of 1988 arising out of the complaint made before the Bar Council of Maharashtra in DC No22 of 1987Shri Ramesh Chandra Vit haldas Sheth made a complaint on February 9 1987 to the DC No21 of Bar Council of Maharastra against the respondent Devendra Bhaishankar Mehtaan Advocate practising in Bombay inter alia alleging professional misconduct against the said advocate
It was alleged by the respondent complainantthat he carries on business of manufacturing at Jhalod and he owns a proprietary firm named as Ms Ravi Dyechem Manufacturing Industries and Ms Vithaldas Dye Stuff Manufacturing Company
The complainant was in need of finan cial accommodation and was in search of a reliable financier and Mr Balu Bhai Modi impressed the complainant that they would give financial accommodation on being satisfied about the documents of security
It was represented to the com plainant that a firm of Solicitors run by the said Shri Devendra Bhaishankar Mehta would examine the papers for the purpose of financing and the said Shri Devendra Bhai Mehta was also an investor
The complainant on such representation agreed to get financial loan through the said Balu Bhai Modi
The complainant alleged that an inspection of factory and other premises at Jhalod was made by Shri Balu Bhai and he was informed that the said properties were in excellent condition and the estimated value was Rs12 lakhs
He 692 was also assured that since the properties were valuable and in excellent condition a lower rate of interest would be considered and he was also told that a loan up to Rs7 lakhs would be advanced to him provided the complainant would be advanced to him provided the complainant would pay a draft or cash at the rate of 5 and 12 on the advance of the amount of loan towards legal and other expense
He was also informed that a meeting of the financiers would be held including Mr Devendra Bhai Mehta who was one of such finan ciers
Thereafter a meeting was arranged at the residence of the said Shri Devendra Bhaishankar Mehta and in such meeting Shri Devendra Bhaishankar Mehta falsely represented to the complaint that he was an advocate of the firm of solicitors Ms Dayalji and Deepchand and he worked only for the genuine financiers and he would look to the interests of the loan seekers
Shri Devendra Bhaishankar Mehta also represented to the complainant that he was himself a member of the internal group of the financiers who would advance the loan and hence he was not only preparing the mortgage deed for the proposed loan but also scrutinising it for his own satisfaction
He also assured the complainant that once the mortgage deed was drafted by him the complainant would get loan within ten days because thereafter only the formalities were required to be gone into
The said Shri Mehta induced the complainant to part with money for legal expenses and informed the complainant that out of 5 and 12 of the amount of loan required to be paid by the complainant by way of legal expenses Shri Devendra Bhaishankar Mehta would keep 3 and 12 for the stamp duty payable to the Government and he also represented that the disbursement could be expedited only if the complainant would pay cash to Balubhai Modi on April 10 1986
Shri Devendra Mehta also promised that he would see that the loan proposal was passed in the internal group of meeting of the financiers of which he himself was one of the financiers and he would ensure that Shri Balu Bhai Modi would sanction the loan as early as possible
Thereafter Shri devendra Mehta had inspected the documents and returned most of the original documents and assured the complainant that he would get loan in a few days
On April 10 1986 the complainant went to the office of Shri Balu B Modi and handed over to him a sum of Rs25000 for the loan of Rs7 lakhs  14
Shri Balu B Modi told the typist to prepare the stamp receipt and also informed the complainant to arrange for the payment of balance of Rs13500
The complainant informed him that he would pay the balance to Shri Devendra Mehta at the time of disbursement of loan
Shri Balu Bhai Modi told the 693 complainant to pay to Shri Devendra Mehta within a week and he instructed the typist to put the date as April 17 1986 by which date the complainant would pay the balance sum of Rs13500
The complainant alleged that thereafter he had contacted Shri Devendra Bhaishankar Mehta who represented to the complainant that if the complainant could not pay the balance of Rs13500 in a week how internal group of finan ciers would believe that the complainant would repay the loan of Rs7 lakhs
He therefore advised the complainant that he should pay a balance of Rs13500 and the complain ant accordingly paid the said balance sum
Shri Devendra Bhaishankar Mehta thereafter made all attempts to delay the advancement of loans by unending demands and the com plainant had to forward about 200 documents to Shri Devendra Bhaishankar Mehta but Shri Mehta ultimately conveyed to the complainant through Shri Balu Bhai Modi that as the clear ance certificate under Section 230 Ai of the Income Tax Act had not reached the Office of the concerned authorities and as the said advancement of loan was very heavy he would neither advance his share of finance nor he would agree to the disbursement until a sum of Rs10000 would be handed to Shri Devendra Bhaishankar Mehta
The complainant caused an enquiry and came to know that the Certificate under Section 230 Ai had reached the office on June 5 1986
He howev er paid Rs10000 in July1986 to Shri Devendra Bhaishankar Mehta in the presence of Shri Balu Bhai Modi when Shri Devendra Bhaishankar Mehta told the complainant that he would issue the receipt at the time of the disbursement of the loan and he should be trusted
The complainant further alleged that despite such payment and other steps taken by the complainant instead of disbursing the proposed loan Shri Balu Bhai Modi lodged a false complaint against the complainant in Social Security Branch of Bombay Police on September 5 1986
The complainant thereafter made an appli cation to the CID Branch of Bombay Police on September 8 1986
The complainant alleged that because of the friendly relationship by the racketeers including the said Shri Balubhai Modi and Shri Devendra Bhaishankar Mehta with the police nothing was heard about his complaint but ultimately on the personal intervention by the Commissioner of Police Bombay his application was duly registered and Shri Balub hai Modi was chargesheeted in Criminal Case No 111086
The complainant was advised by the police to make an application to the Bar Council against Shri Devendra Bhai Mehta
The complainant also alleged in his petition of complaint to the State Bar 694 Council that Shri Devendra Bhai Mehta had indulged in fraudulent activities in respect of other persons and a list of witness was attached to the said latter of complaint
As the complainant case before the State Bar Council could not be disposed of within the statutory period  the complaint stood transferred to the Disciplinary Committee of the Bar Council of India and numbered as BCI Tr
Case No12788
As aforesaid the judgment dated June 30 1990 in the BCI Tr
Case No127 of 1988 is the subject matter of Civil appeal No 4437 of 1990
When the complaint case was pending before the Disci plinary Committee of the State Bar Council of Maharashtra the said Disciplinary Committee called upon the appellant to file and affidavit
Pursuant to the direction of the State Bar Council of Maharashtra the appellant filed an affidavit dated November 26 1987 indicating therein the particulars of the documents drafted by the appellant at the instance of the said Shri Balubhai Modi for advancing loans to different persons intending to get loan accommodation
The complain ant respondent also deposed before the Disciplinary Commit tee of the State Bar Council and had applied for issuing summons to the witnesses namely to the deponents of the affidavits affirmed by Shri Munjibhai M Shah and Shri Devendra Shashikant Dyanmhotre who had stated in their affidavits that they had also become victim of fraudulent action and cheating by the said Shri Balubhai Modi in conni vance with the appellant Devendra Mehta
The appellant op posed examination of such persons as witnesses in the pro ceedings inter alia on the ground that the said affidavits had disclosed independent grievances of the deponents and the said deponents had not complained before the Bar Coun cil
It however appears that the State Bar Council of Maharashtra overruled such objections of the appellant
The appellant in an attempt to stall the proceeding before the State Bar Council moved a Writ Petition under Articles 226 and 227 of the Constitution of India being Writ Petition No 1897 of 1988 in the High Court of Bombay inter alia chal lenging the legality and validity of the said complaint proceeding before the State Bar Council
Such Writ Petition however was rejected by the Bombay High Court on April 27 1988 and the matter thereafter proceeded before the State Bar Council and then stood transferred to the Disciplinary Committee of Bar Council of India
The Disciplinary Commit tee of Bar Council of India examined and recorded evidences of Prafulchandra Shah CW 2 Munjibhai M Shah CW 3 Shashikant D Dyanmhotre CW 5 Bhawanji Bharot CW 6 and Mahesh Ramanlal Shah CW 4
It may be noted here 695 that Mahesh R Shah CW 4 an advocate had acted for Praful chandra Shah in Criminal Case
The appellant and complainant had also deposed in the said disciplinary proceeding before the Bar Council of India and their respective statements were also recorded
The Disciplinary Committee of the Bar Council of India scrutinised and analysed the evidences and materials on record and by giving elaborate reasoning the Disciplinary Committee inter alia came to the finding that it was established beyond reasonable doubt that there was a racket for defrauding andor cheating to aspirant loanees and Shri Balubhai Modi and the appellant advocate were parties to such racket
The Disciplinary Committee had also come to the finding that it was established that the appellant had received Rs 10000 from the complainant respondent on July 11 1986
The Disciplinary Committee also came to the finding that the appellant in connivance with the complainant defrauded the complainant in receiving large sum of money on the pretext of legal expenses and other incidental costs for advancing the proposed loan to the complainant but such loan was never advanced to the complainant and instead of disbursing the loan
Shri Balubhai Modi got a false complaint lodged against the complainant in Social Security Branch on September 5 1986
The Disciplinary Committee also came to the finding that a case of professional misconduct under Section 35 of the had been established against the appel lant
On the question of punishment to be imposed on the appellant the Disciplinary Committee of the Bar Council of India inter alia came to the finding that in the facts and circumstances of the case the offence of misconduct commit ted by the concerned Advocate was of a very serious nature
The Advocate had no feeling of regret and remorse
There was no extraneous circumstances of the basis of which the mem bers of the Committee could persuade themselves to take a lenient and liberal view about the punishment and a lenient view would not be justified in the facts of the case
The Committee felt that the name of the said Advocate should be removed from roll of the Advocates
The Disciplinary Commit tee has noted that the Committee has taken into considera tion the guidelines given by the decisions of this court in several namely in Re P an Advocate  in M veerbhadra Rao vs Tek Chand  for imposing the punishment on the concerned Advocate
The Disciplinary Committee therefore passed the following order in exercise of power under Section 353d read with Section 36 and 36 B under Section 43 of 
696 ORDER The name of respondent Advocate Mr Devendra Bhaishankar Mehta Advocate on the State Roll of the Bar Council of Maharashtra be removed from its Roll
He shall pay Rs2000 as costs of these proceedings to complainant Mr Rameshchandra Vithaldas Sheth
 At the hearing of this appeal it has been very strongly contended before us by the learned counsel for the appellant that the Disciplinary Committee of the Bar Cous teau of India had proceeded with a closed mind presumably being influenced by the serious nature of complaint made by the complainant respondent without appreciating properly that the appellant had no role in the matter of alleged fraudulent activities and of cheating by Shri Balubhai Modi andor some other persons
The appellant had only rendered the professional service as an Advocate in a fair and proper manner
It has been contended by the learned counsel for the appellant that the appellant is a practising counsel and he was engaged by the said Shri Balubhai Modi for preparing the documents of mortgage on inspection of the records of the complainant for advancing the proposed loan for Rs seven lakhs
The appellant in his professional capacity had to give his advice
Accordingly he had looked into the docu ments placed before him by Shri Balubhai Modi and the com plainant and prepared the draft deed for mortgage and he had also advised his client Shri Balubhai Modi for compliance of the conditions mentioned in the draft deed before advance ment of loan so that his client Shri Modi was properly secured
The learned counsel has also contended that such action on the part of the appellant was only fair and proper and any responsible
Advocate when engaged by a client was expected to do in the manner in which he had acted
The learned counsel has further contended that it is not a case of the complainant or anybody that the appellant had given any advertisement for advancing loan to any person and it is also nobody s case that he on his own had induced persons to seek such loan andor he had referred the complainant or any other person to Shri Balubhai Modi or to any other person for getting such loan
It has been contended by the learned counsel that it is the positive case of the complainant respondent that pursuant to the advertisement given by Shri Balubhai MOdi he had approached Shri Balubhai Modi for a loan for running his business and Shri Balubhai Modi had clearly stated to the complainant that such loan could be advanced if 697 on inspection of the properties of the complainant the financiers would decide that such loan could be advanced to the complainant and such loan would be advanced on the basis of advice to be taken from the lawyer of the financiers and on execution of proper mortgage deed on scrutiny of the relevant papers and documents
The appellant did not come into the picture at all when the complainant pursuant to the advertisement had contacted Shri Balubhai Modi
It has also been submitted by the learned counsel that admittedly the complainant was referred to the appellant in his capacity as a legal practitioner engaged by the said Shri Balubhai Modi andor the financiers
The learned counsel has contended that only in the capacity of an Advocate engaged by a cli ent the appellant had drafted the deed of mortgage and he had also clearly indicated to the complainant and also to the said Shri Balubhai Modi when the Conference was held in his place that for advancement of loan the mortgage deed as drafted by him should be executed and the complainant should fulfil the terms and conditions indicated by the appellant in the draft deed
Since the complainant failed to satisfy the terms and conditions as drafted by the appellant he had advised Shri Balubhai Modi that he could not approve the advancement of loan
The learned counsel has further submit ted that it is an admitted case that thereafter the com plainant got another document prepared by somebody else and the appellant refused to approve such document because the same was not drafted by him and he did not want to take any responsibility in the matter on the basis of a document not drafted by him
The learned counsel has contended that such action on the part of the appellant clearly indicates that the appellant was a responsible lawyer who wanted to safe guard the interest of his client and despite request he did not agree to approve any document not drafted by him
It has been submitted by the learned counsel for the appellant that if the appellant had real intention to defraud the complain ant and to be a party to the alleged racket he would not have dealt in a straightcut manner and would not have washed his hands in the matter of execution of the document of mortgage
The learned counsel for the appellant has further submitted that the case of payment of any money directly by the complainant to the appellant as sought to be made was not true and should not be accepted
The appellant had received his professional fees only from his client namely Shri Balubhai Modi
He had further submitted that the com plainant respondent falsely stated before the Bar Council that the appellant had extorted Rs10000 from him and such payment of Rs10000 698 was made by the complainant directly to the appellant
He has submitted that such case was not made out by the complainant in his complaints before the Police
The complainant made embellishment to his case by falsely alleg ing that the appellant had asked the complainant to pay a sum of Rs10000 on the assurance that on such payment mortgage deed would be executed without any delay so that the complainant would get the loan of Rs Seven lakhs and the appellant had actually received Rs10000 from him
The learned counsel has contended that such uncorroborated testimony of the complainant about payment of Rs10000 by him to the appellant is not at all convincing and should not be accepted more so when such case had not been made out in the beginning and a false case of payment of Rs10000 was sought to be introduced at a later state
The learned coun sel has contended that if the judgmentorder under appeal is scrutinised in the proper perspective it will clearly reveal a closed mind and a biased approach of the members of the Disciplinary Committee
The Committee unfortunately presumed various facts against the appellant on mere surmise and conjecture for the purpose of coming to the finding that the appellant had been a member of the racket and he had taken part in defrauding and cheating the complainant a large sum of money by assuring him that a loan of Rs seven lakhs would be advanced to him
The learned counsel has also contended that the Disciplinary Committee has committed a grave error in law in considering the evidences of four witnesses who were total strangers to the case of alleged fraud and cheating of the complainant
Such witnesses had no knowledge whatsoever about the alleged deal relating to the case of the complainant and they claimed to be aspirants of getting loans individually in different transactions
The learned counsel has also submitted that the Disciplinary Committee has committed a grave error in law in considering the evidences of CW 2 Prafulchandra Shah CW 3 Munjibhai M Shah CW 5 Shashikant D dyanmohtre and CW 6 Bhawanji Bharot because the alleged case of complicity of the appellant in being a member of the racket to cheat the said aspiring loanees had not been put to the appellant when he was under cross examination
The learned counsel had further submitted that the appellant is a practising advocate and he has a status and respect in the Society
In discharge of his professional duties he has acted as a responsible member of the legal profession when he was engaged by Shri Balubhai Modi
It is neither possible nor desirable for an Advocate to cause enquiries about the real intention of the client in the proposed transaction between the client 699 and a third party
Even if it is accepted that Shri Balubhai Modi gave advertisements to dupe the intending loanees for the purpose of cheating them on false assurance of loans the Disciplinary Committee should have adverted to the real question in issue as to whether or not the appellant himself made any false representation to the complainant and had taken part in defrauding or cheating the complainant
The mere fact that he was engaged by a dishonest person cannot be any ground to hold that the appellant himself was guilty of misconduct only because he had acted as an advocate of a party who may be guilty of the offence of fraud or cheating
The part played by the appellant as an advocate was required to be analysed with an open mind and with reference to the documents and evidences on record but unfortunately the Disciplinary Committee miserably failed and neglected to discharge the responsibilities and the duties and functions entrusted to the Committee
The Committee has accepted inadmissible evidences and uncorroborated testimony of the complainant which in the facts and circumstances of the case were required to be discarded
It has been submitted by the learned counsel for the appellant that it is only unfor tunate that instead of holding that the complainant unjustly tried to implicate the appellant by falsely alleging against him that he was guilty of misconduct the Disciplinary Committee on mere suspicion has drawn adverse inferences against the appellant and based its finding which really lay in the realm of surmise and conjecture
The learned counsel has submitted that this being a statutory appeal this Court Should intrinsically consider the facts and circumstances of the case and should make proper evaluation of the evidences on record and in doing so should discard the improper and unjust finding made by the Disciplinary Committee
The learned counsel for the appellant has contended that the Court may have a concern to ensure that the professional morality and standard are maintained by the members of the profession but at the same time the Court should not loose sight of the fact that any finding based on surmise and conjecture against the appellant will not only do a great harm to his avocation in life and professional career but will also cause immense harm in the matter of his standing and repute in the society and to his friends and relatives and such harms cannot be compensated in any manner
In the facts and circumstances of the case the learned counsel for the appellant has contended that the complainant has miser ably failed to establish the complaint made to the Discipli nary Committee and the disciplinary proceeding was liable to be dismissed with exemplary cost
This 700 Court should therefore allow the appeal and dismiss the complaint with cost
After giving careful consideration to the facts and circumstances of the case and materials on record and arguments advanced at the hearing of the appeal we howev er do not subscribe to the view that the Disciplinary Committee of the Bar Council has proceeded with a closed mind and with a definite bias presumably being influenced by the serious nature of allegation as sought to be contended by the learned counsel for the appellant
The Judgment and Order under appeal clearly reveal that the Disciplinary Committee has taken pains in scrutinising and analysing the facts of the case as dispassionately as practicable
It also appears to us that the weaknesses in the case of the com plainant was not lost sight of and has been specifically adverted to by the Disciplinary Committee even when such infirmity was not pointed out by the appellant at the hear ing
It was contended that Rs10000 was not advanced by the complainant and the case of such advancement of Rs10000 to the appellant advocate by the complainant himself was false and after thought
The Disciplinary Committee has not only considered the case of the appellant as argued but has also taken into consideration the other possible argument in favour of the appellant though not argued
It was on consid eration of all aspects of the matter the Disciplinary Committee has come to the finding by giving cogent reasons therefor
To illustrate this aspect reference may be made to paragraph 18 of the judgment under appeal  If really A was not merely an advocate but also a financier would D utter the words I will pay Rs10000 fees to A only after the registration of the documents and even if he so utters these words would C not feel suspect about the same  In fairness to A
We have addressed this question to ourselves though A did not address us on this
But in the predicament in which C was placed in the situation in which he was made to drive himself from pillar to post and particularly having gone out of pocket to the tune of Rs 40000 after com plying with the necessary formalities so far and keen as he was to get the loan of Rs 700000 as early as possible it is quite possible that his conduct might not be that of a person who would be one of the accurate calculation and assessment
 701 It has been strongly contended by the learned counsel for the appellant before us that the other aspirant loanees who had also approached Shri Balubhai Modi and were referred to Shri Devendra Mehta for taking legal steps to enable the said aspirant loanees to get the proposed loan should not have been examined in the case of Shri Devendra Mehta be cause they were not witnesses to the case of fraud and cheating of the complainant and they had no personal knowl edge of the case and they had also not made any complaint to the Bar Council in respect of their cases
Such contention in out view is devoid of any merit and should be discarded
The complainant specifically alleged that there was a racket to which the concerned advocate and Shri Balubhai Modi were parties
The complainant has indicated the modus operandi by which he became victim of the fraudulent activities of the said members of the racket
To bring home the case of racket the depositions of other persons who had also approached Shri Balubhai Modi for advancement of loan and had been dealt with by Shri Modi and Shri Devendra Mehta in similar manner and though they had to part with substantial amount towards legal and other expenses for getting the proposed loan such loan had not been ultimately sanctioned to them became relevant and necessary to be looked into
As a matter of fact before the Bombay High court the appellant also challenged the propriety and correctness of the Disciplinary Committee of the State Bar Council to examine other loanees dealt with by Shri Balubhai Modi and Shri Devandra Mehta but the High Court of Bombay did not accept such contention by holding inter alia that read in proper context it cannot be said that the allegation of racket was totally absent
It may be noted here that the Disciplinary Committee was anx ious to independently assess the facts and circumstances of the dispassionate manner without being influenced by any observation of the Bombay High Court in disposing of the Writ Petition of Shri devendra Mehta
Such anxiety is clear ly demonstrated by the observation of the Disciplinary Com mittee in paragraph 2 c of the judgmentorder under appeal which may be quoted hereunder 2c The High Court also went through C s evidence before the State DC and opined that read in proper context it cannot be said that the allegation of a a racket was totally absent therein
All said and done when the State DC properly exercised its discretion the High Court thought it improper to entertain the writ petition under article 227 of the Constitution
702 We must say at this stage that at the time of assessing the whole evidence at the end of full dress inquiry we have taken sufficient care and caution to see that the findings of the State DC on the preliminary issue and the High Court s dismissal in limine of A s writ petition declining to interfere with the said findings do not weigh with us for the said assessment
Suffice it to say we have briefly narrated the details for keeping the record straight
 It has also been contended by the learned counsel for the appellant that the Disciplinary Committee could not appreciate the facts and circumstances of the case in their proper perspective in view of the fact that the Committee proceeded with a preconceived notion
It was precisely on account of such a pre conceived view and bias the Discipli nary Committee failed to appreciate that the appellant had only acted in responsible manner expected of an advocate engaged by a client
The learned counsel has contended that it was nobody s case that the appellant had floated a pro posal to advance loan and he had given any advertisement in response to which the complainant had come in contact of Shri balubhai Modi
It is an admitted case that in response to an advertisement by Shri Balubhai Modi the complainant had approached Shri Balubhai Modi for loan and only then he was referred to the appellant by Shri Modi because the appellant was engaged by Shri Modi as a counsel
Although the appellant had always dealt with the complainant only in his capacity as an advocate engaged by Shri Modi a false complaint was lodged by the complainant that the appellant had assured him and represented him that he himself was a financier and he should pay the amount in question to Shri Balubhai Modi and also to the appellant towards legal ex penses and other expenses so that loan for Rs7 lakhs would be advanced to him without delay
Such case according to the learned counsel could not be established by any corrob orative evidence but has been accepted by the Disciplinary committee on mere surmise and conjecture
We are however unable to accept the said contention of the learned counsel
We have carefully considered the materials on record and the reasonings of the Disciplinary Committee in the impugned judgment and we are unable to hold that the findings of the Disciplinary committee are outcome of any closed mind or bias on the part of the committee andor findings of the Committee really lay in the realm of surmise and conjecture
We have already indicated the anxiety of the Disciplinary Committee to dispassionately assess the facts of the case 703 without being influenced by any observation of the High Court of Bombay
The Committee was alive to various aspects of the case and has taken care in meticulously scrutinising and analysing the evidence on record and the materials and the Committee has based its finding by giving cogent reasons and the inferences drawn from the established facts also appear to us quite reasonable
It may be indicated at this stage that Shri Balubhai Modi had died during the pendency of the proceedings before the Disciplinary Committee of the Bar Council of India and there was no occasion to proceed further with the criminal proceeding initiated against him andor to examine him in the instant case
It is always permissible to draw reasonable inference from the facts established in a proceeding and such reasonable inference cannot be termed as finding based on surmises and conjec tures
There is no doubt that in any proceeding judicial or quasi judicial
there is requirement of proof and such requirement cannot be substituted by surmise and conjecture
But proof may be established directly on the basis of the evidence adduced in the proceeding or the allegation of fact may be established by drawing reasonable inferences from other facts established by evidence
In the instant case the committee in our view has referred to the admitted facts and also the facts established in evidence and on a proper analysis of the facts so established andor admitted it has drawn reasonable inference 
The Disciplinary Commit tee deserves commendation in disposing of the complainant s case fairly and dispassionately
In the matter of imposition of punishment the Disciplinary Committee has referred to the relevant decisions of this Court imposed the penalty by recording good reasons for the same
We are not oblivious of the fact that a member of legal profession should not be permitted to be exposed to the hazards of false and malicious allegation against such member and extreme care and caution is required to be taken in dealing with the case of allegation of unfair and improp er conduct on the part of a member of legal profession
There is no manner of doubt that the impugned decision of Disciplinary Committee has a very serious implication on the reputation and standing of the appellant in the society and to the members of his family
friends and relatives
The im pugned decision has also a serious bearing on the profes sional career of the appellant and avocation of life in future
But giving out anxious thought and consideration in the matter we have not been able to come to the finding that the impugned order was improper and unjust and the findings 704 are not tenable law andor the decision has resulted in a failure of justice to the appellant
During the course of arguments before us we had pointedly asked the learned counsel for the appellant to show us any material on record that in any other case on the advice tendered by the appel lant any loan was in fact given by Mr Balu Bhai Modi in order to dispel the inference that the appellant was not a member of the racket and was only discharging his profes sional duty
The learned counsel for the appellant was unable to show any evidence worth the name to prove the innocence of the appellant
The evidence of many other applicants seeking loan shows that they were also duped and met the same fate as the complainant  speaks volumes against the conduct of the appellant
An advocate indulging in such nefarious activities is not entitled to continue as a member of legal profession which is based on the implicit faith and confi dence in the mind of the client
From a perusal of the entire evidence placed on record and read before us leads us to the irresistible conclusion that the appellant was not only having full knowledge about the racket but was also active member in the complicity of such racket and was get ting substantial financial advantage
The appellant was not a silent spectator merely given his legal advice but was an important link in the modus operandi of running a racket by Balu Bhai Modi
It is really unfortunate that a member of a legal profession has indulged in fraudulent activities in a calculated manner for financial gain at the cost of an innocent person
To say the least an advocate enrolled under the  having a licence to represent the case of litigants is expected to maintain a high stand ard of morality and un impeachable sense of legal and ethi cal propriety
It is not the case of a lapse to take appro priate steps by an Advocate andor a case of negligence in discharging the duties so that any lenient view may be taken against the concerned advocate
The concerned advocate has not only misused the trust reposed in him but has played an active part in defrauding or cheating the complainant who on the basis of the false representation of the concerned advocate had to part with substantial amount to his serious loss and prejudice
In such facts and circumstances of the case we do not find any reason to reduce the punishment imposed on the appellant
This appeal therefore fails and is dismissed with costs


Summary:
This appeal challenged the validity of the Jammu and Kashmir Big Landed Estate Abolition Act XVII Of 2007 which was enacted by Yuvaraj Karan Singh on October 17 1950 in exercise of the powers vested in him by section 5 of the Jammu and Kashmir Constitution Act 14 of 1996 1930 and the final proclamation issued by Maharaja Hari Singh on June 20 1949 by which he entrusted all his powers and function to the Yuvaraj
The object of the Act was to improve agricultural production by abolishing big landed estates and transferring land to the actual tillers of the soil
The suit out of which the present appeal arises was brought by the appellant in a representative capacity for a declaration that the Act was void inoperative and ultra vires and that he was entitled to retain peaceful possession of his lands
Both the trial Court as also the High Court in appeal found against him and dismissed the suit
Hence this appeal by special leave
The validity of the Act was challenged mainly on the ground that Yuvaraj Karan Singh had no authority to promulgate the Act
It was contended that i when Maharaja Hari Singh conveyed his powers to the Yuvaraj by his proclamation of June 20 1949 he was himself a constitutional monarch and could convey no higher powers 2 the said proclamation could not confer on the Yuvaraj the powers specified therein 3 the powers of the Yuvaraj were substantially limited by his own proclamation issued on November 25 1949 by which he sought to make applicable to his State the Constitution of India that was soon to be adopted by its Constituent Assembly in so far as it was applicable 4 as a result of the application of certain specified Articles including article 370 of the Constitution of India to the State of Jammu Kashmir the Yuvaraj became a constitutional monarch without any legislative authority or powers and 5 the decision of the Constituent Assembly of the State not to pay compensation was invalid since the Assembly itself was not properly constituted
Held that Yuvaraj Karan Singh when lie promulgated the Act had the power to do so and its validity was beyond question
271 It was indisputable that prior to the passing of the Independence Act 1947 Maharaja Hari Singh like his predecessors was an absolute monarch so far as the internal administration of his State was concerned
Section 3 Of the Regulation 1 of 1991 1934 issued by the Maharaja not only preserved all his preexisting powers but also provided that his inherent right to make any regulation proclamation or ordinance would remain unaffected
The Constitution Act 14 of 1996 1939 promulgated by him did not alter the position
Sections 4 and 5 of that Act preserved all the powers that he had under section 3 of the Regulation 1 of 1991 and section 72 preserved his inherent powers so that he remained the same absolute monarch as he was before
With the lapse of British paramountcy on the passing of the Independence Act 1947 the Maharaja continued to be the same absolute monarch subject to the agreements saved by the proviso to section 7 Of the Act and in the eyes of international law could conceivably claim the status of an independent sovereign
It was unreasonable to suggest that the provisions of the Instrument of Accession signed by the Maharaja on October 25 1947 affected his sovereignty in view of cl 6 thereof which expressly recognised its continuance in and over his State
There was no substance in the argument that as a result of his proclamation issued on March 5 1948 which replaced the emergency administration by a popular interim Government headed by Sheik Mohammad Abdullah and constituted a Council of Ministers who were to function as a cabinet the Maharaja became a constitutional monarch
The cabinet had still to function under the Constitution Act 14 of 1996 1939 under the overriding powers of the Maharaja
When the Maharaja on June 20 1949 therefore issued the proclamation authorising the Yuvaraj to exercise all his powers although for a temporary period it placed the Yuvaraj in the same position as his father till the proclamation was revoked
The Maharaja was himself an absolute monarch and there could be no question as to his power of delegation
In Re    referred to
The proclamation issued by the Yuvaraj on November 25 1949 did not vary the constitutional position as it stood after the execution of the Instrument of Accession by the Maharaja nor could it in any way affect the authority conferred on the Yuvaraj by his father
The contention that the application of certain specified Articles of the Indian Constitution to the State by the Constitution Application to Jammu and Kashmir Order C O 10 issued by the President on January 26 1950 affected the sovereign powers of the Yuvaraj was not correct
Neither the scheme of article 370 nor the explanation to cl
1 of that Article Contemplated that the Maharaja was to be a constitutional ruler
The temporary provisions of that Article were 272 based on the assumption that the ultimate relationship between India and the State should be finally determined by the Constituent Assembly of the State itself
So that Article could not either expressly or by implication be intended to limit the plenary legislative powers of the Maharaja
Till the Constituent Assembly of the State therefore made its decision the Instrument of Accession must hold the field
The initial formal application of article 385 which was sub sequently deleted from the list of Articles applied to the State could not justify the conclusion that it had adversely affected the legislative powers of the Yuvaraj
There was no substance in the contention that the decision of the Constituent Assembly not to pay compensation was invalid as the Assembly itself was not properly called or constituted
There could be doubt that the Yuvaraj was perfectly competent to issue the proclamation dated April 20 1951 in variation of the Maharaja s under which the Assembly was ultimately constituted and so the Assembly was properly convened