Coaching classes advertisements not misconduct when CA abstained from practice area of chartered accountancy-Delhi High Court

Coaching classes advertisements not misconduct when CA voluntarily abstained from practice area of chartered accountancy-Delhi High Court

ABCAUS Case Law Citation:
978 2016 (07) HC
Date/Month of Judgment : July 2016

Brief Facts of the Case:
The respondent chartered accountantin this case had been held guilty of “other misconduct” within the meaning of clause (2) Part-IV of the First Schedule to the Chartered Accountants Act, 1949. The respondent chartered accountant had challenged the report of the Board of Discipline of ICAI.  During the course of  such petition, the respondent CA had given an undertaking to the Delhi High Court that he shall voluntarily not practice the profession of Chartered Accountant till the next date of hearing

The present writ had been filed alleging that the respondent chartered accountant, despite giving the undertaking as above, has issued advertisements representing himself as a Chartered Accountant thereby wilfully violating the statement given to the Court and was thus guilty of Contempt of Court.

Observations made by the Court:

1. The advertisements showed that the respondent was running coaching classes. It was nowhere stated that the respondent was offering to render services of auditing or verification of financial transactions, books, accounts, or records or any services related to accounting procedure or recording presentation or certification of financial facts or data etc.
2. The respondent, by the said advertisements, was merely offering coaching to aspirants of the profession of chartered accountancy.
3. The respondent was registered as a Chartered Accountant and till he was removed from the rolls, he was entitled to use the prefix and suffix “CA”.
4. Though Board of Discipline of Institute of Chartered Accountants of India had held the respondent guilty of “other misconduct”, the punishment was still to be awarded.
5. The issuance of advertisements offering to take coaching classes and to impart of training to aspirants of the profession of chartered accountancy, in the above circumstances, could not be said to be carrying on the profession of chartered accountancy..