TaxTMI 
TaxTMI 
2000 (1) TMI 868
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....of Travancore (the complainant), before the Council of the Institute of Chatered Accountants of India. Allegation was that there was disclosure of information acquired in the course of professional engagement without consent of the complainant to third parties. In response to Institute's query, auditors replied that M.S. Abraham (as the respondent) was answerable. This according to the complainant was misconduct in terms of clause (1) of Part I of the Second Schedule to the Act. It was alleged that the auditors were appointed as statutory branch auditors of the Thiruvalla Branch of State Bank of Travancore for the years ending on 31-12-1985 and 31-12-1986. During the course of audit, the respondent had access to certain documents. Communica....
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....d that in view of the factual conclusions arrived at by the Disciplinary Committee as well as the council, this is a fit case where no further action should be taken against the respondent. It is submitted that due to disturbed state of mind, hardly any professional work is being done by him, and even a stigma of reprimand would be harsh. 4. Chapter V of the Act deals with 'misconduct'. Section 21 deals with procedure in inquiries relating to misconduct of members of Institute. Section 21, so far as relevant reads as follows : "Procedure in inquiries relating to misconduct of members of Institute:- (1) to (3)****** (4) Where the finding is that a member of the Institute has been guilty of a professional misconduct specified in t....
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.... such period as the High Court thinks fit; (d)refer the case to the Council for further inquiry and report." 6. 'Professional misconduct' has been defined in section 22. Intendment and object of the Act is to maintain standard of the profession at a high level, and consequentially a Code of Conduct has been prescribed. Miscon-duct implies failure to act honestly and reasonably either according to the ordinary and natural standard, or, according to the standard of a particular profession. Chartered Accountants' profession occupies a place of pride amongst various professions of the world. That makes observance of professional duties and propriety more imperative. When conduct of a member of the profession is contrary to honesty, or opp....
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....ocate, that an act which is done otherwise than with utmost good faith is unprofessional - Pandurang Dattatraya Khandekar v. Bar Council of Maharashtra AIR 1984 SC 110, Para 6- ". . . The test of what constitutes 'grossly improper conduct in the discharge of professional duties' has been laid down in many cases. In the case of A Solicitor Ex parte the Law Society, In re [1912] 1 KB 302, Darling, J. adopted the definition of 'infamous conduct in a professional respect", on the part of a medical man in Allinson v. General Council of Medical Education & Registration [1894] 1 QB 750, applied to professional misconduct on the part of Solicitor, and observed : "If it is shown that a medical man, in the pursuit of his profession, has done so....