Shanti Prime Publication Pvt. Ltd.
Section 21A of the Chartered Accountants Act, 1949— Board of Discipline- ICAI is under an obligation to provide reasons to the complainant for its prima facie conclusion of the member being not guilty of any misconduct on the complaint made by a Complainant
Facts: Petitioner had invested in the shares of a company called 'First Leasing Company of India Limited'. The Reserve Bank of India vide its letter dated 4-9-2013, called upon the Company to recast the Balance Sheet and the Profit and Loss Account for the period ending 31-3-2013 and 30-6-2013, as it was found that the same had overstated assets as well as earnings of the company. The petition further alleges that by a letter dated 4-9-2013, the RBI also observed that an inspection of the Company had revealed that the company had been falsifying its books of accounts and other financial statements over several years, thereby portraying a positive net worth. The RBI also issued a Press Release dated 13-9-2013 inter-alia prohibiting the Company from selling, transferring, creating charge or mortgaging or dealing in any manner with its property and assets without prior written permission of the RBI. The petitioner filed a complaint bearing Complaint no. 230A/2014 with the Institute of Chartered Accountants of India against the Internal Auditors of the Company and a complaint bearing no. 230/2014 against the Statutory Auditors of the Company.
Held, that it is held that the ICAI is under an obligation to provide reasons to the complainant for its prima facie conclusion of the member being not guilty of any misconduct on the complaint made by a Complainant. At the same time, it is clarified that such reasons need not be elaborated and would not widen the scope of interference of the Courts while exercising powers of judicial review. The present petition is accordingly allowed directing the ICAI to communicate the reasons for its decision that was communicated to the petitioner vide the Impugned Communication dated 9-4-2018, within a period of two weeks of receipt of this order. - TRIDEEP RAJ BHANDARI V/s INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA -  23 ITCD Online 159 (DEL)