Delhi High Court affirms the ICAI’s decision dismissing a complaint alleging professional misconduct by a CA since the report on book verification met the judicial scrutiny test

The Delhi High Court supports the ICAI’s decision to dismiss a complaint alleging Professional Misconduct by a CA, finding that a report pertaining to book verification had survived judicial scrutiny.

The Appellant, Wholesale Trading Services, filed a complaint with the ICAI alleging professional misconduct against Respondent No.3, who was assigned by the Karnataka High Court to verify the papers, among other things.

The ICAI Disciplinary Committee dismissed the complaint on 16.12.2020, and the said ruling was challenged before the learned Single Judge of this Court in W.P.(C) 376/2021. The writ petition was dismissed, and the current appeal stems from that decision. vii. Separately, an entity called ‘India Awake for Transparency’ filed a Recall application with the Karnataka High Court, requesting the recall of the order approving the merger scheme on March 26, 2015.

On 17.03.2021, the Single Judge of the Karnataka High Court dismissed the recall application, ruling that the Applicant lacked locus standi to submit a review application because it was not a party to the initial petition.

If the report contained anything objectionable, was false and contrary to the Company’s record, or overlooked any fraudulent transactions, as alleged by the Appellant, the Karnataka High Court would have taken cognizance of it and it would not have been accepted, the division bench led by the Chief Justice and Justice Jyoti Singh held. In our opinion, the ICAI’s Disciplinary Committee made the correct decision by rejecting the case.

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