High Court disposes CA Act reference, finds guilt but no action due to time lapse, abates deceased's case.

The High Court of Bombay disposed of the reference under the Chartered Accountants Act, 1949, finding Mr. R. Salivati guilty on three counts but decided not to take further action due to the extended duration since the alleged violations and the Respondent's undertaking. The reference against the deceased Respondent abated, and the Court directed the proceedings to be filed by the Institute with no order as to costs.

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Issues involved:
This case involves a reference under Section 21(5) of the Chartered Accountants Act, 1949 against the concerned partners of a firm regarding violations related to Securities Transactions of Banks and Financial Institutions, irregularities in Securities and Banking Transactions, and Annual Reports of Canbank Mutual Fund for the year 1991-92.

Details of the Judgment:

1. Abatement of Reference against Deceased Respondent:
The reference against Respondent No.1 abated due to his demise, leaving the case to be decided solely against Respondent No.2.

2. Charges and Findings Against Respondent No.2:
Respondent No.2, Mr. R. Salivati, was charged on 16 counts but found guilty on 3 counts, including violations of RBI guidelines, losses in the secondary market, and indirect lending by Canbank Mutual Fund.

3. Status of Criminal Prosecution:
The Institute's counsel could not confirm the status of any criminal prosecution against the Respondents, and it was unclear if Mr. Salivati was accused in any proceedings.

4. Retirement and Surrender of Certificate of Practice:
Mr. Salivati retired on 31st March 2016, surrendered his certificate of practice in June 2017, and the Institute subsequently canceled his certificate.

5. Undertaking and Designation Usage:
Mr. Salivati agreed not to apply for a Certificate of Practice again and not to use the designation of Chartered Accountant for six months as per the Institute's directive.

6. Decision and Disposal of Reference:
Considering the nature of the charges and the time elapsed since the alleged violations in 1991-92, the Court decided not to take further action against Mr. Salivati. The proceedings were directed to be filed by the Institute, and the reference was disposed of with no order as to costs.

7. Conclusion:
The Court found that the prolonged pendency of the reference over almost 30 years, coupled with Mr. Salivati's undertaking and lack of similar offenses, did not warrant any additional action against him.

Judgment: The High Court of Bombay disposed of the reference under the Chartered Accountants Act, 1949, finding Mr. R. Salivati guilty on three counts but deciding not to take further action due to the extended duration since the alleged violations and the Respondent's undertaking.

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