Delhi High Court - Orders
Solan Spinning Mills Pvt Ltd vs Institute Of Chartered Accountants Of ... on 18 December, 2023
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~4 (SB)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 16349/2022 & CM APPL. 54693/2022
SOLAN SPINNING MILLS PVT LTD ..... Petitioner
Through: Mr. Apar Sirohi & Mr. Shailender
Solanki Advocates (M: 9927717700).
versus
INSTITUTE OF CHARTERED ACCOUNTANTS
OF INDIA AND ANR ..... Respondents
Through: Ms. Manisha T. Karia, Ms. Nidhi
Nagpal, Mr. Rohan Trivedi and Ms.
Swapnil Baudh Advs. for R-1
(ICAI) (M. 9818002150)
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 18.12.2023
1. This hearing has been done through hybrid mode. CM APPL. 54693/2022 ( for clarification) in W.P.(C)-16349/2022
2. This is an application filed by the Respondent No.1 - Institute of Chartered Accountants of India (ICAI) seeking clarification of order dated 29th November, 2022. The said order reads as under:
3. The present is a writ petition under Article 226 of the Constitution of India has been filed by the Petitioner- M/s Solan Spinning Mills Pvt. Ltd. seeking expeditious decision in the complaint made by it against a Chartered Accountant - Mr. Aseem Gupta. There are various allegations which have been raised by the Company against him including that of transfer of some property in favour of his son, non-transfer of shares by his wife and his son despite payment of consideration and theft of a vehicle.
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4. The said complaint was filed by the Petitioner- Company before the Institute of Chartered Accountants of India (hereinafter 'ICAI'). The Petitioner-Company had also lodged an FIR on 6th July, 2018 at the Police Station, Baddi, District Solan, Himachal Pradesh. The complaint was filed to the Disciplinary Committee of ICAI on 11th September, 2018 and on 22nd May, 2020, a prima facie opinion has been given by the Director (Discipline) as per the applicable rules of The Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007.
5. However, after the prima facie opinion was given, the matter has not been proceeded further and according to the Petitioner, it is being delayed unnecessarily.
6. Ms. Manisha T. Karia, ld. Counsel appearing for the Respondent- ICAI submits that there are a large number of complaints which are being dealt with by the ICAI and there is also a closure report filed by the Police in this matter. Even on facts, there is no urgency and the ICAI would take up the matter on its own terms. However, Mr. Apar Sirohi, ld. Counsel for the Petitioner disputes the position and submits that in fact the charge-sheet has registered against Mr. Aseem Gupta.
7. Without going into the merits of the complaint, considering the fact that the prima facie opinion has been rendered in May, 2020 and more than two and a half years have passed, the Writ Petition is disposed of with the direction that the ICAI shall take up the matter expeditiously and in any case shall decide on the complaint of the Petitioner on or before 31st July, 2023.
3. As can be seen from the above order, as per the Petitioner, after the prima facie opinion was given, the matter had not proceeded further and was being delayed unnecessarily. Accordingly, the ICAI was to take up the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/12/2023 at 00:46:01 matter expeditiously and in any case decide on the complaint of the Petitioner on or before 31st July, 2023.
4. In the present application according to the ICAI, the said direction cannot be complied with as it has already considered the prima facie opinion given by the Director (Discipline), ICAI. Further, vide letter dated 3rd September, 2020 it communicated to the Petitioner the decision of the Board of Discipline, ICAI wherein it concurred with the opinion of the Director (Discipline). The said letter reads as under:-
Sub: In the matter of Complaint made by Shri Arvind Kumar Arora, Director, M/s. Solan Spinning Mills Pvt. Ltd., Distt. Solan (H.P.) against you, under Section 21 of the Chartered Accountants Act, 1949.
"I have been directed to inform you that the above Complaint, Written Statement, Rejoinder and additional documents along with the prima facie opinion formed by the Director (Discipline) under Rule 9(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, were considered by the Board of Discipline. The Board on consideration of the same, concurred with the reasons given against the charge(s) and thus, agreed with the prima facie opinion of the Director (Discipline) that the Respondent is NOT GUILTY of 'Other Misconduct falling within the meaning of Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22 of the said Act.
Accordingly, under Rule 9(3) (a), the Board has passed order for closure of the aforesaid Complaint. The abovementioned Complaint against you thus stands closed."
This is a digitally signed order.
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5. It is submitted that no separate order has been passed by the Board of Discipline and the case has been closed as far as the complaint is concerned. In view thereof, no further consideration would be required by the ICAI in terms of the order dated 29th November, 2022.
6. The Petitioner's remedies are left open both in respect of the prima facie opinion of the Director (Discipline) as also the final decision of the Board of Discipline, ICAI as communicated vide letter dated 3rd September, 2020.
7. The order dated 29th November, 2022 is clarified to this effect.
8. Application is disposed of. No further orders are called for in this matter.
PRATHIBA M. SINGH, J.
DECEMBER 18, 2023 mr/kt This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/12/2023 at 00:46:02