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Disgraceful Conduct of the Institute of Chartered Accountants of India

Disgraceful Conduct of the Institute of Chartered Accountants of India

FromLegal Talks by Desikanoon


Disgraceful Conduct of the Institute of Chartered Accountants of India

FromLegal Talks by Desikanoon

ratings:
Length:
12 minutes
Released:
Jun 7, 2021
Format:
Podcast episode

Description

Facts in Brief The Petitioner was a Chartered Accountancy (CA) aspirant. On 20.11.2020, concerned with the pandemic situation, she wrote an Email to the functionaries of the Institute of Chartered Accountants of India (ICAI) cautioning that if the CA Exams are held during the time of Covid-19 pandemic, it will lead to exponential growth in number of Covid cases and sought development of online infrastructure for conducting CA Exams. Later on, during 22.01.2021 to 07.02.2021, she had appeared for Intermediate Exams of CA. On 22.02.2021, she received an Email from ICAI informing that her result had been put on hold because of the derogatory remarks made by her in the Email dated 20.11.2020 and she was asked to explain why disciplinary proceedings should not be initiated against her. The Petitioner immediately issued an unconditional apology on 22.02.2021 itself whereafter she was asked to personally appear before the Examination Committee of ICAI on 10.03.2021 at Jaipur. She appeared on the said date but the Order/Result of the same was not informed to her. When the results were announced on 26.03.2021, the Petitioner found out that her result was cancelled under caption “ADOPTED UNFAIR MEANS. LETTER FOLLOWS.” On 30.03.2021, the Respondents (ICAI) informed her that she was guilty of making derogatory remarks in the captioned examination and therefore, her result was cancelled. Hence, a Petition was preferred before the Hon’ble High Court of Judicature for Rajasthan. Arguments of the Petitioner 1. The action of the Respondents is against Regulations 41 and 176 of the Chartered Accountants Regulations, 1988 (in short, “CA Regulations”) as the Examination Committee can adjudge conduct of a candidate in or near an Examination Hall only whereas the Letter dated 20.11.2020 was written months before the Exam and not during the time of the Exam. 2. The Email dated 20.11.2020 cannot be said to be derogatory. Though there were certain strong remarks, yet the same were only due to the anxiety of the Petitioner to request the ICAI to develop online infrastructure. 3. The Reply to the Email dated 22.02.2021 by the Petitioner is reflective of the pressure that she is facing from the ICAI. 4. The ICAI failed to show grace and despite nothing derogatory in the Email dated 20.11.2020, it did not close the matter. 5. The phrase “adopted unfair means” was prima facie factually incorrect and only shows the vindictiveness of the ICAI. Arguments of the Respondents 1. There is an efficacious alternative remedy of filing a review before the Council against the decision of the Examination Committee. Hence, the Writ Petition is not maintainable. 2. The cancellation of result has not been challenged and hence, the relief of declaration of result is not maintainable. 3. There was disorderly behaviour on part of the Petitioner and doubts should not have been raised with respect to Institute’s preparation in conducting the exams. 4. The Email dated 20.11.2020 related to exams and hence, the Examination Committee had jurisdiction to look into the matter. Observations of the Court The Court observed that the initiation of proceedings against the Petitioner were without jurisdiction, arbitrary, capricious and against the principles of natural justice. It was further observed that the Email dated 20.11.2020 was addressed to the office bearers of the ICAI and not to the Examination Committee. It was the opinion of the Court that the Email contained nothing derogatory and any action in this regard is unwarranted, uncalled for and high-handed. The Court also stated that the Institute of Chartered Accountants of India pushed the Petitioner to brink and subjugated her to the extent that she had to write in her Reply that she is ashamed of herself. The Court found it disturbing that the Petitioner was personally heard on 10.03.2021, yet no order was ever communicated to her, and her exam result was cancelled in an arbitrary manner vide Communication dated 30.03.2021. 
Released:
Jun 7, 2021
Format:
Podcast episode

Titles in the series (100)

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