Private settlement cannot withdraw a disciplinary complaint under the Chartered Accountants framework, and misconduct may justify professional penalty.
Under the Chartered Accountants Act, a complaint once filed with the Disciplinary Directorate could not be withdrawn or neutralised by a private settlement, so the disciplinary process remained valid. The complainant's absence did not vitiate the enquiry because such proceedings are primarily between the Institute and the member, with the complainant acting only as an informant or related party. On the merits, the member's conduct-supported by the record and found unbecoming of a Chartered Accountant-was held to constitute other misconduct, and the professional penalty of removal from the Register of Members for six months was upheld as proportionate.
Issues: (i) whether a complaint under the Chartered Accountants Act, 1949 could be withdrawn or neutralised on the basis of a settlement between the complainant and the respondent; (ii) whether the absence of the complainant in the disciplinary proceedings vitiated the enquiry; (iii) whether the respondent's conduct amounted to other misconduct warranting removal of his name from the Register of Members for six months.
Issue (i): whether a complaint under the Chartered Accountants Act, 1949 could be withdrawn or neutralised on the basis of a settlement between the complainant and the respondent.
Analysis: The complaint had been filed before the amendment of the Act and, by virtue of the transitional provision, the matter continued to be governed by the unamended statute. Under Section 21(8), a complaint once filed with the Disciplinary Directorate could not be withdrawn. Consequently, any private settlement between the parties could not erase the complaint or prevent its examination under the disciplinary framework.
Conclusion: The settlement did not defeat the disciplinary complaint and no withdrawal could be recognised.
Issue (ii): whether the absence of the complainant in the disciplinary proceedings vitiated the enquiry.
Analysis: Disciplinary proceedings under the Act are intended to assess whether a member has maintained the professional standards expected of a Chartered Accountant. They are primarily between the Institute and its member, while the complainant functions as an informant or related party. The complainant's non-participation does not convert the proceedings into a private dispute or invalidate the enquiry.
Conclusion: The absence of the complainant did not vitiate the disciplinary proceedings.
Issue (iii): whether the respondent's conduct amounted to other misconduct warranting removal of his name from the Register of Members for six months.
Analysis: The record showed that the respondent had signed the transfer deed, continued to receive dividends after the alleged sale, sought duplicate share certificates without a convincing explanation, and failed to substantiate the plea of theft or settlement. The Court found the findings of the disciplinary authorities to be supported by cogent material. Interference under Article 226 was limited, and the conduct was held to be unbecoming of a Chartered Accountant, lacking in bona fides, and bringing disrepute to the profession. The punishment was also found not to be unduly harsh in light of the need for integrity and probity in the profession.
Conclusion: The respondent was guilty of other misconduct and the penalty of removal of his name from the Register of Members for six months was upheld.
Final Conclusion: The reference was answered by sustaining the disciplinary finding and the recommended professional penalty, with no interference in the consequence imposed on the respondent.
Ratio Decidendi: In disciplinary proceedings under the Chartered Accountants Act, a private settlement cannot withdraw a complaint once filed, the complainant's absence does not invalidate the enquiry, and conduct bringing disrepute to the profession may amount to other misconduct warranting proportionate professional punishment.
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