Disciplinary proceedings against managing committee of ICAI Chandigarh Branch stayed by P&H High Court in a case of democratic selection of branch chairman.
This indeed puts a question mark on the endeavour of ICAI in upholding the democratic principles enshrined in the Chartered Accountants Act, 1949 and rules governing it.
ABCAUS Case Law Citation:
1026 (2016) 09 HC
Facts of the Case:
In the meeting of the Executive/Managing Committee of the Chandigarh Branch of the Institute of Chartered Accountants of India (ICAI) of Northern India Regional Council (NIRC), the elected Chairman resigned. The Vice-Chairman was requested to take over, however, on his refusal, the name of CA Sahil Singla who was a member of the executive committee was proposed by the outgoing Chairman and was accepted and he was requested to take over as Chairman of the Branch. .
However, ICAI was irked by this decision of the Managing Committee and on this action of the Executive Committee, the Institute had started disciplinary proceedings against the all the eight members of the Executive Committee of the Chandigarh Branch.
A Writ Petition was filed by the Managing Committee of Chandigrah Branch along with its members seeking quashing of disciplinary proceedings initiated by the ICAI challenging that there is no power vested with ICAI to initiate disciplinary proceedings for selection of Branch Chairman by its executive committee.
The High Court while issuing notices to the respondent(s) including ICAI, stayed the disciplinary action against the members of the Managing/Executive Committee of the Chandigarh Branch.
Also, the High Court took assurance by the respondents that meantime all the bills of Chandigarh Branch shall be cleared by the Central Unit of ICAI.