COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA NEW DELHI Vs. B K NAGARAJ CHARTERED ACCOUNTANT

JUDGEMENT

(1.) This is a matter which has come to this Court under Section 21(5) of the Chartered Accountant Act, 1949 (for short 'the Act'). The respondent is a Chartered Accountant. For the sake of convenience the Council of the Institute of Chartered Accountants of India is referred as the petitioner. A complaint was lodged against the respondent by the Joint Chief Controller of Imports and Exports alleging that respondent had issued a fictitious certificate of purchase turnover of books for Rupees 22,00,000/- to M/s. Vengateswara Book House, Bangalore April March 1980-81 period. The complainant stated that the respondent was guilty of professional misconduct under Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.

(2.) It seems relying on the certificate issued by the respondent, an Import Licence was issued to M/s. Vengateshwara Book House on 7/08/1981. Subsequently on realising that it is a non existing one, this licence was cancelled. Therefore, the complainant asserted that:

(3.) An enquiry was held at Bangalore by the Disciplinary Committee. The complainant as well as the respondent were aksed to take oath and thereafter both of them were examined. Complainant produced certain documents according to the list supplied to the complainant by the Disciplinary Committee, but nothing turns out of those documents. Respondent has stated that he issued the certificate in question on the assumption that it was required for obtaining the bank loan, that he did not maintain any working paper notes concerning the audit he has done before issuing the certificate and that he was not maintaining such papeRs. To a specific question from the Vice-President : "But are you not contesting that point made by the complainant with regard to the Certificate?" Respondent answered : "As far as the facts are concerned, I do not have to say anything." Vice-President : Question : Do you not have to contest? Respondent: Answer: No.. When the respondent was asked about the books of account referred to him as having been examined, he stated that they were purchase and sale books, and not cash books and ledger books. To the next question :