REGISTRAR OF COMPANIES Vs. P M HEGDE

JUDGEMENT

(1.) THIS case has been referred to us under the Chartered Accountants Act, 1949. It arises out of a complaint dated 4-4-1951 made by the Registrar of Companies, Bombay, against the respondent, a chartered Accountant to the Council of the Institute of chartered Accountants of India, that as the Auditor of the Rural Bank of India Ltd. , Karwar, he was guilty of professional misconduct. On receipt of the complaint, the Secretary to the Council forwarded a copy of it to the respondent who filed a written statement on 7-5-1951. There was an inquiry by the Disciplinary Committee. The Committee reported that the respondent was guilty of gross negligence in the discharge of his duties. The findings of the Council, on a consideration of the report of the Disciplinary Committee, are as follows :

(2.) THE events which led up to the complaint are as follows :

(3.) THE complaint unfortunately does not appear to have been drafted as a complaint directed against the auditor. It recites the various irregularities and even frauds which had been discovered by Messrs. Kulkarni and Co. , and winds up in the following manner :