CA and Social Conduct
Arjun (A) — Oh Lord, It
is now becoming too much! Simply
unbearable!
Shrikrishna — Arjun,
What are you talking about? Heat?
A — No.
S —Then,
compliances? Corruption?.
A —
No Bhagwan. I am talking about Supreme Court decision. There is no logic
only.
S —
But this is the case with many decisions of the Courts. Why are you wasting your time and energy in
finding out any logic in the decisions?
A —
They do give some logic. But quite often, it is hard to agree with it.
S —So,
you always can use the expression ‘with due respect…………..’.
A —
Jokes apart. I am referring to a Supreme
Court decision in the case of Council of the Institute of Chartered Accountants
of India vs. Shri Gurvinder Singh & ANR delivered on November 16, 2018.
S —
What does it say?
A —
It says even the personal or private behaviour of a CA is subjected to
disciplinary mechanism! It need not be a misconduct committed in the course of
carrying out the profession.
S —
Then, what is wrong about it?
A —
How do you say so? How is ICAI concerned with our private affairs? I may do
anything in my personal life. So long as I am discharging my professional
duties diligently, who can be aggrieved?
S —
You are mistaken, Paarth! Have you ever read your Chartered Accountants’
Act?
A —
I read it at the time of my exam 25 years ago! Why? Is there any amendment?
S —
Yes. To some extent there is an effect of Amendment in the year 2006. But this
particular provision was there right since the beginning.
A —
I never noticed it.
S —
Paarth, you know that the term ‘misconduct’ is defined in section 22
of the Act. The heading itself says ‘professional or other misconduct
defined’.
A —
Let me see. Oh! But I will have to hunt for the Act. I may have lost my copy. Ever since I
qualified, I have never seen it!
S —
Ironical but that’s the case with almost all the CAs.
A —
True. Ok, tell me what it says?
S —
It says – professional or other misconduct includes any act or omission listed
in the 2 schedules of the Act. Over and
above this, it also gives wide powers to the Director Discipline to inquire
into the conduct of any member under any other circumstances.
A —
Oh! That means it is all pervasive. But why so?
S —
Arjun, it is very simple. If you misbehave anywhere, how is it reported in the
news? ‘CA caught red-handed in doing ______’ Is it not?
A —
Yes. Like bribery, money laundering, falsification of documents; and even other
crimes.
S — Doesn’t
it bring disrepute to the profession? By your professional misconduct, normally
a few clients or revenue authorities or banks may be aggrieved. But by such other
misconduct, entire profession’s image is tarnished.
A —
So, what kind of misconduct is covered under this expression?
S —
Many items! It includes even the case of dowry, breaking other laws,
violence, cheating, issuing cheques without adequate balance,
misrepresentation, so on and so forth!
A —
Even traffic rules?
S —
Of course, yes. If it is recurring affair! Even quarrelling in public
places, obscene behaviour – and what not! Of course, it will depend on
facts.
A — But
then, what was the amendment?
S —
Previously, other misconduct was a general term – meaning – behaviour
unbecoming of a professional! As a professional, you are expected to maintain
certain standards of behaviour in personal as well as public life. Only then
the credibility and respectability can remain.
A —
Agreed. But what is the amendment?
S —
They have now codified it by adding clause (2) in Part IV of first schedule. It says the act of a CA that brings disrepute to
the profession or the Institute by his action, whether or not related to his
professional work.
A —
Oh! So, it is clear.
S —
Further, if a CA is held guilty by any civil or criminal court for any offence
which is punishable with imprisonment, that is also a misconduct.
A —
Bhagwan, now I have understood. So, the Apex Court was right, since the law is
clear. I am also convinced about the logic behind it. Thank you Lord.
S —
So, take care in all your personal affairs too!
A —
Yes, I will.
Om Shanti!
This dialogue is based on the following:-
i) Supreme Court decision in the case of Council of the
Institute of Chartered Accountants of India vs. Shri Gurvinder Singh & ANR delivered
on November 16, 2018
ii) Section 22 of CA Act – Professional or
other misconduct defined
For the purpose of this
Act, the expression ‘professional or other misconduct’ shall be deemed to
include any act or mission 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 enquire into the conduct of any member of the Institute under any
other circumstances’.
iii) Other misconduct in relation to members of the Institute
generally:
Items (91) and (2) of Part
IV of First Schedule.
1. Is held guilty by any civil or criminal court for an offence
which is punishable with imprisonment for a term not exceeding six months;
2. In the opinion or the Council, brings disrepute to the
profession or the Institute as a result of his action whether or not related to
his professional work.
iv) Part III of Second Schedule
A member of the Institute,
whether in practice or not, shall be deemed to be guilty or other misconduct, if
he is held guilty by any civil or criminal court for an offence which is
punishable with imprisonment for a term exceeding six months.
