1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 06.01.2011 CORAM: THE HON'BLE MR.JUSTICE K.K.SASIDHARAN W.P(MD)No.181 of 2011 and M.P.(MD)No.1 of 2011 A.Louis Sudharson .. Petitioner / Petitioner Vs. 1.The Director (Discipline), Disciplinary Directorate, The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg. Post Box No.7100, New Delhi – 110 002. 2.The Disciplinary Committee, The Institute of Chartered Accountants of India, ICAI Bhawan, No.122, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 3.H.K.Kawllienthang, Under Secretary, Minstry of Home Affairs, Government of India, 26, Mansingh Road, Jaisalmer House, DSH, New Delhi – 110 003. 4.G.Srinivasa Rao, Director (FCRA), Ministry of Home Affairs, Room No.9, DSB Jaisalmer House, 26, Mansingh Road, New Delhi – 110 003. 5.C.S.Ravi Deputy Secretary, The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg. Post Box No.7100, New Delhi – 110 002. .. Respondents PRAYER: Writ Petition is filed under Article 226 of the Constitution of India, praying for a Writ of Certiorarified Mandamus, to call for the https://hcservices.ecourts.gov.in/hcservices/ 2 records relating to order in File No.PR-215/08-DD/64/2009 dated 04/05/2010 passed by the 1st respondent and quash the same and direct the 2nd respondent herein not to hear the matter since it is devoid of jurisdiction. For Petitioner : Mr.K.Ravi For Mr.M.Ajmal Khan O R D E R The petitioner challenges the proceedings dated 04.05.2010 on the file of the first respondent, whereby and whereunder, prima facie opinion was formed by the disciplinary committee of the Institute of Charted Accountants of India to initiate disciplinary proceedings against him. THE FACTS: 2.The petitioner is a practicing Charted Accountant, having registered his name with the Institute of Chartered Accountants of India vide membership No.209328. According to the petitioner, the Audit of the Centre for Rural Development of India located at Paloor Junction, Karungal Post, Kanyakumari District, was conducted by him during the month of April-May 2006. The Audit was done in his professional capacity and all the documents were verified by him and accordingly, an Audit Certificate was given. 3.Subsequently, the 3rd respondent filed a complaint before the Institute of Chartered Accountants of India, New Delhi, alleging professional misconduct against the petitioner. This resulted in issuing notice by the second respondent calling upon the petitioner to explain his position. After receiving the reply from the petitioner, the disciplinary Committee formed a prima facie opinion to proceed further against the petitioner. Accordingly, notice was issued, calling upon him to appear before the authority on 08.01.2011. Feeling aggrieved by the said proceedings, dated 4 May 2010, the petitioner is before this Court. SUBMISSIONS: 4.The learned counsel for the petitioner contended that the disciplinary authority has no jurisdiction to proceed against the petitioner, inasmuch as the complainant has no locus standi to prefer the complaint. According to the learned counsel, accounts were audited in the manner known to law and it does not warrant an enquiry by a disciplinary authority. It was further contended that the materials available on record do not warrant an action to be taken by the disciplinary committee and as such, the very proceedings is liable to be set aside. THE CORE ISSUE: 5.The only issue to be decided is as to whether the prima facie opinion formed by the disciplinary authority is liable to be set aside in a Writ Petition filed under Article 226 of the Constitution of India. DISCUSSION: 6.The accounts of Centre for Rural Development of India, Paloor Junction, Karungal Post, in the district of Kanyakumari were scrutinized https://hcservices.ecourts.gov.in/hcservices/ 3 by the Assistant Director (FCRA), Ministry of Home Affairs, Government of India on 25 June 2007. The Inspecting Authority found that, though the association claimed several activities for rural development, it was not supported by books of accounts and records. The Association placed reliance only on the Chartered Accountant certified accounts statements for 2003-2004, 2004-2005, 2005-2006 and 2006-2007. The authority submitted a report before the Government of India and this resulted in initiating proceedings by the Ministry of Home Affairs. Shri.H.K.Kawllienthang, Under Secretary of the Ministry was authorized to make a complaint against the petitioner. Accordingly, a complaint was preferred against the petitioner by the duly constituted authority. The petitioner was called upon to explain his position and it was only after considering his response, the Institute of Chartered Accountants of India has arrived at a prima facie opinion to proceed against the petitioner. 7. The opinion formed by the disciplinary authority constituted under Section 21(B) of the Chartered Accountants (Amendment Act) 2006, contains prima facie materials to proceed against the petitioner. It is not as if the second respondent has taken a final decision prejudicial to the interest of the petitioner. They have only initiated action and sufficient opportunity would be given to the petitioner to prove his position. 8. The second respondent was constituted as the disciplinary authority under the Chartered Accountants (Amendment Act) 2006. The Committee is empowered to look into the complaint preferred against the Chartered Accountants. The Committee, on the basis of documents available on record, arrived at a factual finding that there were prima facie materials to proceed against the petitioner. 9. The Writ Petition filed by the petitioner is too premature. He should subject himself to the jurisdiction of the disciplinary authority. The Court cannot substitute its opinion in the face of the prima facie opinion formed by the disciplinary authority. Therefore, I do not find any merit in the contentions raised in the Writ Petition. RESULT: 10. In the upshot, I dismiss the Writ Petition. Consequently, the connected miscellaneous petition is also dismissed. No costs. SD/- Assistant Registrar (P&A) /True Copy/ Sub Assistant Registrar To 1.The Director(Discipline),The Disciplinary Directorate, The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg. Post Box No.7100, New Delhi – 110 002. https://hcservices.ecourts.gov.in/hcservices/ 4 2.The Disciplinary Committee, The Institute of Chartered Accountants of India, ICAI Bhawan, No.122, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 3.Under Secretary, Minstry of Home Affairs, Government of India, 26, Mansingh Road, Jaisalmer House, DSH, New Delhi – 110 003. 4.The Director (FCRA), Ministry of Home Affairs, Room No.9, DSB Jaisalmer House, 26, Mansingh Road, New Delhi – 110 003. 5.The Deputy Secretary, The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg. Post Box No.7100, New Delhi – 110 002. +1 CC TO MR. M. AJMAL KHAN, ADVOCATE S.R NO. 625 Order made in W.P(MD)No.181 of 2011 06.01.2011 MPK/SML PAM 02.02.2011/7C/4P https://hcservices.ecourts.gov.in/hcservices/