ANIL AGARWAL Vs. INSTITUTE OF CHARTERED ACCOUNTANTS

JUDGEMENT

(1.) This judgment will dispose of two writ petitions, C.W.P. No. 6426/99 and C.W.P. No. 4139/99 as common questions arise for consideration.

(2.) The petitions have been filed lender Article 226 of the Constitution of India for issuance of a writ in the nature of certiorari for quashing the letters dated 20th May, 1999 and subsequent communication dated 19th June, 1999 respectively. By these communications the Institute of Chartered Accountants have rejected the plea of the petitioners to pass no confidence motion against the Chairman of the Northern India Regional Council (for short NIRC) of the Institute of Chartered Accountants of India. The communications dated 20th May, 1999 and 19th June, 1999 may be reproduced as below :- "May 20,1999. Shri Praveen Kumar Bansal, Secretary, Northern India Regional Council of The Institute of Chartered Accountants of India, I.P.Marg, New Delhi-110002. Dear Sir, The Central Council in its meeting held from 15th-17th May, 1999 at Mumbai considered the matter related to "No Confidence Motion" against the office bearer/s of the Regional Councils and reconstitution of the Committee (s) of the Regional Councils before expiry of their term and decided to issue the following directions to the Regional Councils under Regulation 127(2) of the Chartered Accountants Regulations, 1988 :-

(3.) The pleas and contentions raised by the petitioners are incorporated in paragraphs 1 to 7 of the Writ Petition No. 6426/99 which may be reproduced as below :- "1. The petitioners herein are practicing chartered Accountants possessing a Certificate of Practice in accordance with the Chartered Accountants Act and the regulations hereunder. They are the six out of the total of nine Elected Regional Council Members of the council known as The Northern India Regional Council of The Institute of Chartered Accountants of India (hereinafter referred to as NIRC for the take of brevity & convenience). They all are citizens of India and are entitled to all the rights enshrined in, Constitution of India and the other enactment of the State. 2. The Respondent No. 1 is the body established under. The Chartered Accountants Act for the purposes of regulation of profession of Chartered Accountants in India and is regulated by the said Act. The Respondent No. 2 is one of the five Regional Councils established under Section 23 of the Chartered Accountants Act in order to advise and assist the Central Council of the Respondent No. 1 under the Regulations called the Chartered Accountants Regulations 1998. The establishment, functions, duties, jurisdiction, constitution, elections and all other matters in respect of Respondent No. 2 are regulated by Chapter VII of the Chartered Accountant Regulations, 1998. The respondents 1 and 2 are State within the definition of Article 12 of the Constitution of India having been established under the Act of Parliament & performing statutory functions. 3. The general membership of NIRC consists of the Chartered Accountants enrolled & practicing/working in the States of Haryana, Himachal Pradesh, Jammu & Kashmir, Delhi & Punjab and the Union Territory of Chandigarh. These genera! members elect member/representatives to the Council for their region (in the present case of Northern Region Nine Members). These nine elected members are entrusted with the duty to manage and perform the duties as per the provisions of Chapter VII of the Chartered Accountants Regulations 1988. As per the provisions of Regulations 137 of the said regulations, the Regional Council has been empowered to elect out of its members a Chairman, Vice Chairman, a Secretary, Treasure thereof. It is further provided that vacancy to any of such offices has to be filled by election alone.