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johnpaul21 (managing Director)     27 May 2015

Icai disciplinary proceedings


I have filed a complaint before Disciplinary Directorate of ICAI. As per ICAI Procedure of Investigations of Professional and Other Misconduct and Conduct  Refer    ) after filing of complaint Disciplinay Director (Secretary to Disciplinary Commitee) forms Prima facie opinion. Now problem I am facing is that out of 10 major  points pertaining to my complaint Disciplinay Director has formed prima-facie opinion in only one point  and rest have been discarded inspite of strong evidence against the respondent Auditor. I suspect foul play in this. There are several allegation against previous Director Discipline among various members of ICAI and with my experience I feel that they are true.kindly refer

My problem is that Disciplinay Commitee in disciplinay hearings is now saying that they will only consider only on the aspect in which Director Discipline has formed prima-facie opinion. They are refusing to consider the evidence I have submitted with my complaint and they are not giving me opportunity to present my case and evidence on the matter discarded by Director Discipline. Kindly Advice.


 4 Replies

bsrao   27 May 2015

It is true that the internal disciplinary committee shall have a final say in such allegations levelled. You better allow the committee to complete its findings and then appeal against the same if you are empowered to. 

DEVENDRANATH SHRIKANT JOSHI (Proprietor)     27 May 2015

Unfortunately, there is no provision either under the Chartered Accountants Act or the Investigation of Misconduct Rules 2007 for appeal by the Complainant for not entertaining the complaint or dismissing the complaint.  Further, this being an interim order, no appeal is provided even by authorities under the Act.  I think, the only option left for you is to file Writ Petition before the High Court questoning the order of the Director (Discipline) or Committee.

T. Kalaiselvan, Advocate (Advocate)     02 June 2015

As rightly observed by Mr. D.S. Joshi, the decision by the internal committee cannot be appealed against, even if you do tat, there will be no to listen to it.  You may vent out all your grievances  in the form a writ petition and file the same before high court. 

johnpaul21 (managing Director)     02 June 2015


Thank you sirs for your valuable opinions. It is learned that a committee meber himself has raised serious allegations against the Disciplinary Director (in another case) and hence she was removed from the post and a new Disciplinary Director has taken her place. But Disciplinary Committee is refusing to go beyond the prima-facie opinion formed by former Director (Discipline).

 Should Writ Petition be filed against the findings (prima-facie opinion) of Disciplinary Director before Disciplinary proceedings are over or should I wait for final decision of Disciplinary committee and then move against the final judgment of Disciplinary committee as such. Already I have listed out the important facts that the Disciplinary Director has failed to consider against the respondent despite existence of clear evidence. The problem with first option is that I can file petition under Miscellaneous category and there is too much cases in High Court that it will take minimum 2 years and High Court may only ask to form new prima-facie opinion and the entire process will have to be repeated. Kindly advice.

 Already I have pointed out the judgment of Hon’ble Delhi High Court in W.P.(C) 6488/2011 (Naresh Chandra Agarawal Vs The Institute Of Chartered Accountants Of India and Otrs) is reproduced below.

“.... As noticed above, Director (Discipline) functions as the Secretary of the Board of Discipline. However, it is difficult to accept that in case Director (Discipline) gives a closure report on the basis of his or her opinion that there is no prima facie case, the Board of Discipline/Disciplinary Committee must accept that opinion and the only option to the Board of Discipline is to advise the Director (Discipline) to investigate the matter further. The provisions do not postulate finality to the prima facie opinion of the Director (Discipline). On the other hand, Director (Discipline) is the Secretary of the Board. The final determination whether or not a member is guilty of professional or other mis-conduct in the First Schedule or the Second Schedule, is decided by the Board of Discipline or the Disciplinary Committee. The argument raised and the interpretation placed by the petitioner is contrary to the legislative intent and will make the provisions unworkable as it would make the Board of Discipline and the Disciplinary Committee powerless in case the Director (Discipline) gives a negative prima facie report. The phrase ‘prima facie’ itself shows that report of the Director (Discipline) is tentative and not final. The finality is attached to the orders which are ultimately passed either by the Board of Discipline or the Disciplinary Committee.But I am yet to receive any communication.


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