COUNCIL OF CHARTERED ACCOUNTANTS Vs. SHANTARAM RAO

JUDGEMENT

(1.) This reference is by the Council of the Institute of Chartered Accountants (hereinafter referred to as Institute), under S.21 of Chartered Accountants Act, 1949 (hereinafter referred to as the Act), recommending that the respondent one Sri Shantharama Rao, a Chartered Accountant, be removed from the membership of the Institute for a period of 3 months,

(2.) The respondent commenced his practice as an Accountant in or about the year 1934. He has been an auditor of a company by name M/S. Bangalore Automobiles Ltd., incorporated under the provisions of the Companies Act. In respect of his audit concerning the years 1963-64, 64-65 and 65-66, certain irregularities were noticed by the Registrar of Companies in Mysore, Bangalore, and the same were brought to the notice of the Instiute by his letter dated 11-12-1971. Since the Registrar failed to furnish the further particulars called for and to comply with the directions issued by the Institute, the aid letter itself was treated as information received and disciplinary proceedings were initiated against the respondent. The disciplinary committee of the Institute after affording an opportunity to the respondent to furnish his reply to the charges as specified and holding an enquiry thereon, found the respondent guilty of professional misconduct under Clauses (6) and (7) of Part I of the Schedule to the Act. On receipt of the report of the disciplinary committee, the Council of the Institute considered the same along with all the relevant records, and passed a resolution in accordance with S.21 (5) of the Act. recommending for the removal of the respondent from membership of the Institute for a period of 3 months, by way of punishment, and made the reference in question.

(3.) The said resolution reads : "The respondent was guilty of professional misconduct under Causes (6) ana (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. It was decided to recommend to the High Court that the name of 'the respondent be removed from the membership of the Institute for a period of 3 months".