CHAPTER V
MISCONDUCT
28 [ 21. Disciplinary Directorate.
(1) The Council shall, by notification, establish a Disciplinary
Directorate headed by an officer of the Institute designated as Director
(Discipline) and such other employees for making investigations in respect of
any information or complaint received by it.
(2) On receipt of any information or complaint along with the
prescribed fee, the Director (Discipline) shall arrive at a prima facie opinion on
the occurrence of the alleged misconduct.
(3) Where the Director (Discipline) is of the opinion that a member is
guilty of any professional or other misconduct mentioned in the First Schedule,
he shall place the matter before the Board of Discipline and where the Director
laid down in the succeeding sub-sections.
¨(Discipline) is of the opinion that a member is guilty of any professional or
other misconduct mentioned in the Second Schedule or in both the
Schedules,
he shall place the matter before the Disciplinary Committee.
(4) In order to make investigations under the provisions of this Act,
the Disciplinary Directorate shall follow such procedure as may be specified.
(5) Where a complainant withdraws the complaint, the Director
(Discipline) shall place such withdrawal before
the Board of Discipline or, as
the case may be, the Disciplinary Committee, and the said Board or Committee
may, if it is of the view that the circumstances so warrant, permit the withdrawal
at any stage. ]
29[21A. Board of Discipline.
(1) The Council shall constitute a Board of Discipline
consisting of--
(a) a person with experience in law and having knowledge of
disciplinary matters and the profession, to be its presiding officer;
(b) two members one of whom shall be a member of the Council
elected by the Council and the other member shall be nominated by the Central
Government from amongst the persons of eminence
having experience in the
field of law, economics, business, finance or accountancy;
(c) the Director (Discipline) shall function as the Secretary of the Board.
(2) The Board of Discipline shall follow summary disposal procedure in
dealing with all cases before it.
(3) Where the Board of Discipline is of the opinion that a member
is
guilty of a professional or other misconduct mentioned in the First Schedule, it
shall afford to the member an opportunity of being heard before making any
order against him and may thereafter take any one or more of the following
actions, namely:-
(a) reprimand the member;
(b) remove the name of the member from the Register up to a period of
three months;
(c ) impose such fine as it may thinks fit which may extend to rupees
one lakh.
(4) The Director (Discipline) shall submit before the Board of
Discipline all
information and complaints where he is of the opinion that there is
no prima-facie case; and the Board of Discipline may, if it agrees with the
opinion of the Director (Discipline), close the matter or in case of
disagreement, may advise the Director (Discipline) to further investigate the
matter.
21B. Disciplinary
Committee.
(1) The Council shall constitute a Disciplinary Committee consisting
of the President or the Vice-President of the Council as the Presiding Officer
and two members to be elected from amongst the members of the Council and
two members to be nominated by the Central Government from amongst the
persons of eminence
having experience in the field of law, economics,
business, finance or accountancy:
Provided that the Council may constitute more Disciplinary Committees
29 Inserted by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f.
17.11.2006.
23
as and when it considers necessary.
(2) The Disciplinary Committee, while considering the cases placed
before it shall follow such procedure as may be specified.
(3) Where the Disciplinary Committee is of the opinion that a member
is guilty of a professional or other misconduct mentioned in the Second Schedule
or both the First Schedule and the Second Schedule, it shall afford to the
member an opportunity of being heard before making any order against him
and may thereafter take any one or more of the following actions, namely: -
(a) reprimand the member;
(b) remove the name of the member from the Register permanently or
for such period, as it thinks fit;
(c ) impose such fine as it may think fit, which may extend to rupees
five lakhs.
(4) The allowances payable to the members nominated by the Central
Government shall be such as may be specified.
21C. Authority, Disciplinary Committee, Board of Discipline
and
Director (Discipline) to have powers of civil court.
For the purposes of an inquiry under the provisions of this Act, the
Authority, the Disciplinary Committee, Board of Discipline and the Director
(Discipline) shall have the same powers as are vested in a civil court under the
Code of Civil Procedure, 1908, in respect of the
following matters, namely:-
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) the discovery and production of any document; and
(c) receiving evidence on affidavit.
Explanation.- For the purposes of sections 21, 21A, 21B, 21C and 22, “member
of the Institute” includes a person who was a member of the Institute on the
date of the alleged misconduct although he has ceased to be a member of the
Institute at the time of the inquiry.
21D. Transitional Provisions.
All complaints pending before the Council or any inquiry initiated by the
Disciplinary Committee or any reference or appeal made to a High Court prior to
the commencement of the Chartered Accountants (Amendment) Act, 2006, shall
continue to be governed by the provisions of this Act, as if this Act had not been
amended by the Chartered Accountants (Amendment) Act, 2006. ]
CAclubindia
