Calcutta High Court (Appellete Side)
Pralay Chakraborty vs The Institute Of Chartered Accountants ... on 18 May, 2017
Author: Debangsu Basak
Bench: Debangsu Basak
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18.05.2017.
Sl.No.77/rc
W.P. No. 14118(W) of 2017
Pralay Chakraborty
Versus
The Institute of Chartered Accountants of India & Ors.
Mr. Y.J.Dastoor
Mr. Shyamal Goswami .. For the petitioner
Mr. S.S.Banerjee
Mrs. F. Nasim .. for the respondent
The petitioner complains that the institute has taken disciplinary proceedings on the basis of the notifications which have been strucked down by a Hon'ble High Court.
He refers to an order dated April 01, 2013 passed in Civil Appeal Nos. 7208-09 of 2005 (Institute of Chartered Accountants of India Vs. K. Bhagavatheeswaran & Anr. ) and submits that, the Hon'ble Supreme Court of India was pleased to grant liberty to raise the issue in the event it is required and the institute to decide the same in accordance with law. He submits that, the proceedings have been initiated by the institute against his client on the basis of the notifications which were subject-matter of challenge before the Madras High Court and the guidelines which were the subject-matter of consideration before the Hon'ble Supreme Court of India in the two proceedings disposed of by the order dated April 01, 2013. Secondly the institute ought to hear and dispose of the challenge application first. He expresses an apprehension that, the institute may not decide the challenge application but may take up the main proceedings and pass an order which may be prejudicial to his client.
Learned advocate for the institute submits that the institute will not pass the final order without deciding the challenge application first.
I have considered the rival contentions of the parties and the materials made available on record.
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It appears that the institute had initiated proceedings on the basis of guidelines which were formulated subsequent to the notification being quashed by the Hon'ble Madras High Court. However, the parties are guided by the directions contained in the order dated April 01, 2013 of the Hon'ble Supreme Court of India in Institute of Chartered Accountants of India (Supra). Therefore, the institute is obliged to take up for consideration the challenge application first and dispose of the same prior to proceedings on the merits of the matter against the petitioner.
In the present case the petitioner has applied challenging the validity of the guidelines. In the facts of the present case, in my view, interest of justice would be subserved by requesting the institute to hear and decide the challenge application first before taking up for consideration the main proceedings. Needless to say that the institute will afford a reasonable opportunity of hearing to the petitioner so far as the challenge application is concerned. The institute is at liberty to decide on such challenge application in accordance with law and communicate to the petitioner its decision forthwith thereafter. The institute will not take up for consideration the main proceedings for a period of four weeks from the date of receipt of the order in the challenge application, by the petitioner.
W.P.No. 14118(W) of 2017 is disposed of without any order as to costs. Since I have not invited any affidavits, all allegations made in the writ petition are deemed to be denied by the respondents.
Urgent certified website copies of this order, if applied for, be made available to the parties upon compliance of the requisite formalities.
( Debangsu Basak, J. )