August 2019


Kirit S. Sanghvi
Chartered Accountant


Of late, there is a lot more awareness amongst the public about the role of a chartered accountant and how his profession is relevant to the society. There is an ever-growing expectation of the society from chartered accountants who are expected to show a high degree of civility in their behaviour and conduct. However, it seems that the growing expectation of the society also puts pressure on the ICAI to deal with certain conduct of a chartered accountant and to decide whether his particular conduct is subject to its (the ICAI’s) disciplinary supervision.


Apart from specific instances of professional misconduct, a chartered accountant can also be accused of committing ‘Other Misconduct’, which could encompass a wide array of behaviour. It is the intention of this article to discuss what exactly should be covered in ‘Other Misconduct’, particularly in the light of a decision of the Hon’ble Delhi High Court.



A member of the Institute of Chartered Accountants of India can be guilty of ‘Professional Misconduct’ or ‘Other Misconduct’. These terms are explained in section 22 of the Institute of Chartered Accountants Act, 1949 (ICAI Act) thus, ‘For the purposes of this Act, the expression “professional or other misconduct” shall be deemed to include any act or omission provided in any of the Schedules, but nothing in this Section shall be construed to limit or abridge in any way the power conferred or duty cast on the Director (Discipline) under sub-section (1) of Section 21 to inquire into the conduct of any member of the Institute under any other circumstances’.


Thus, the terms ‘Professional Misconduct’ and ‘Other Misconduct’ are not defined exhaustively. They are, rather, explained in an inclusive manner to include any act or omission mentioned in any of the schedules. However, part IV of the first schedule that contains provisions with respect to ‘Other Misconduct’ with which we are concerned here, reads as under: ‘A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if he –


Past Issues

Current Issue