INSTITUTE OF CHARTERED Vs. DHARMENDRA SUMANCHANDRA

JUDGEMENT

(1.) This is a reference made to this Court under Sec. 21(5) of the Chartered Accountants Act, 1949 (for short, 'the said Act'), by the Institute of Chartered Accountants of India, New Delhi, for necessary orders to be passed in terms of Sec. 21(6) of the Act.

(2.) It is the case of the petitioner that Shri Kailash Bhagwandas Bhatia, hereinafter referred to as "the complainant", who was a Chartered Accountant, had audited the accounts of M/s. Prashant Enterprises and of M/s. K. Prashant Industries up to the year ending 31/3/2004 and had billed the said entities for fees for accountancy services rendered, which fees were still kept outstanding by the clients.

(3.) On receiving the complaint, the petitioner sent a copy of the same under cover of letter dtd. 13/7/2006 to the respondent, calling upon the respondent to file his written statement to the allegations made in the complaint. The respondent presented his written statement on 20. 09.2006, in answer to which the respondent submitted his rejoinder on 28/10/2006, followed by respondent's written comments on the rejoinder being filed on 23/11/2006. On considering the contents of the complaint, written statement and the rejoinder, the petitioner, in terms of Regulation 12(11) of the Chartered Accountants Regulations 1988, in its meeting held in February 2008, arrived at a prima facie opinion that the respondent was guilty of professional and other misconduct, and referred the case to the Disciplinary Committee constituted under the provisions of the Act for conducting an inquiry.