Professional misconduct by a chartered accountant upheld for lack of diligence in arranging financing and dishonest conduct.

A chartered accountant was found guilty of professional misconduct where he accepted advance fee to arrange financing but failed to show any effective steps to secure funds or the diligence expected before undertaking the assignment. The disciplinary findings were upheld because the record indicated he knew the funds were meant for the company's benefit, yet he did not seek necessary documents or demonstrate proper professional care. His conduct was treated as dishonest and blameworthy, and suspension from the Register of Members for one year was imposed.

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Issues: Whether the respondent, a member of the Institute of Chartered Accountants, was guilty of professional misconduct under the Chartered Accountants Act, 1949 and whether suspension from the Register of Members for one year was warranted.

Analysis: The respondent had received advance fee under a memorandum of understanding for arranging funds, but there was no satisfactory proof that he took any effective steps to secure financing. The record showed that the cheque was issued by the company, indicating that the respondent knew the funds were intended for the company's benefit. He also failed to show that he had sought necessary documents or exercised the diligence expected of a chartered accountant before undertaking to obtain funds. The disciplinary findings were accepted and the conduct was treated as dishonest and blameworthy.

Conclusion: The respondent was held guilty of misconduct, and suspension of his name from the Register of Members for one year was imposed.

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