Professional misconduct in certification work turns on gross negligence, but bona fide error and prompt disclosure may avoid reprimand.

A Chartered Accountant's certification work must reflect reasonable skill, care and caution, including basic verification of figures before issuing a professional certificate. Gross negligence can amount to professional misconduct where the conduct shows a failure to act honestly and reasonably rather than a mere error of judgment. Here, although an incorrect export value was certified, the conduct was treated as bona fide because the mistake was promptly pointed out to the concerned party and the surrounding circumstances did not justify formal reprimand. A caution or warning was considered sufficient, and the disciplinary reference was closed without punitive action.

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Issues: Whether the respondent Chartered Accountant was guilty of professional misconduct under Section 22 read with clause (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949 for certifying an incorrect export value and whether reprimand was warranted.

Analysis: The misstatement was found to have occurred in the respondent's professional certificate, and the standard applicable to a Chartered Accountant required reasonable skill, care and caution, including elementary verification of figures before certification. Gross negligence in professional duties may amount to misconduct where there is a failure to act honestly and reasonably and not merely an error of judgment. At the same time, the conduct was treated as bona fide because the respondent himself pointed out the mistake to the concerned party, and the surrounding circumstances did not justify the severer course of reprimand.

Conclusion: The respondent was not visited with reprimand; a caution was held to be sufficient, and the misconduct reference was closed.

Final Conclusion: The matter was disposed of by declining the disciplinary punishment recommended by the Council and substituting only a warning in view of the respondent's bona fide conduct.

Ratio Decidendi: For a Chartered Accountant, gross negligence amounting to professional misconduct requires a failure to exercise the reasonable skill, care and caution expected in certification work, but bona fide error coupled with prompt disclosure may justify denial of formal punitive action.

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