AI Drafter 
TaxTMI 
TaxTMI 
2024 (6) TMI 120
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....ment of removal of the name of Respondent No. 1 from the Register of Members for a period of six months along with fine of Rs. 1,00,000/-. 3. The facts of the case reveal that Respondent No. 1 is a Chartered Accountant and dealt with a company, namely, Lotus Refineries Private Limited and issued a net worth certificate dated 29.10.2012 to Lotus Refineries Private Limited holding that the company has net worth of Rs. 268.27 lakhs as on 30.09.2012. A complaint was filed by Respondent No. 2 against Respondent No. 1 stating that the net worth certificate issued by Respondent No. 1 is not correct. 4. The Respondent No. 2/Complainant, 'National Spot Exchange Limited', is the pan India electronic commodity spot exchange under the oversight of the Forward Market Commission (FMC), Ministry of Finance. It is stated that Respondent No. 2 is engaged in organizing the trade of commodity spot markets and facilitating purchase and sale transactions in commodities through its electronic trading platform. 5. It is stated that Respondent No. 2/Complainant helps the farmers to sell their crop produce through an electronic trading platform while the processors/ exporters/ manufacturer....
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.... made by the parties, the Disciplinary Committee vide Order dated 03.02.2020 held Respondent No. 1 guilty of professional misconduct falling within the meaning of Clause (7) of Part I of the Second Schedule to the Act and by a consequential Order dated 08.02.2022 awarded punishment of removal of his name from the Register of Members for a period of six months along with a fine of Rs. 1,00,000/-. 11. Aggrieved and dissatisfied with the aforesaid impugned Orders dated 03.02.2020 and 08.02.2022, Respondent No. 1 preferred an appeal before under Section 22G of the Act. 12. The Appellate Authority vide order impugned herein accepted the contention of Respondent No. 1 that the net worth certificate was given by Respondent No. 2 on the basis of a provisional balance sheet as on 30.09.2012 and not on the basis of the balance sheet given at the end of the financial year which was in March, 2013. The Appellate Authority stated that mere omission to mention that the net worth certificate is issued on the basis of provisional balance sheet does not amount to professional misconduct and such omission is nothing but only technical in nature. 13. The appeal was therefore allowed and the ....
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....ticle 226 of the Constitution grants an extraordinary remedy, which is essentially discretionary, although founded on legal injury. It is perfectly open for the writ court, exercising this flexible power to pass such orders as public interest dictates & equity projects. The legal formulations cannot be enforced divorced from the realities of the fact situation of the case. While administering law, it is to be tempered with equity and if the equitable situation demands after setting right the legal formulations, not to take it to the logical end, the High Court would be failing in its duty if it does not notice equitable consideration and mould the final order in exercise of its extraordinary jurisdiction. Any other approach would render the High Court a normal court of appeal which it is not. 53. The essential features of a writ of certiorari, including a brief history, have been very exhaustively explained by B.K. Mukherjea, J. in T.C. Basappa v. T. Nagappa, AIR 1954 SC 440. The Court held that a writ in the nature of certiorari could be issued in 'all appropriate cases and in appropriate manner' so long as the broad and fundamental principles were kept in mind. Those pri....
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.... doubt by holding that a writ of certiorari can be issued for correcting errors of jurisdiction committed by inferior courts or tribunals. The observations of this Court in para 7 are worth taking note of: "7. The question about the limits of the jurisdiction of High Courts in issuing a writ of certiorari under Art. 226 has been frequently considered by this Court and the true legal position in that behalf is no longer in doubt. A writ of certiorari can be issued for correcting errors of jurisdiction committed by inferior courts or tribunals : these are cases where orders are passed by inferior courts or tribunals without jurisdiction, or is in excess of it, or as a result of failure to exercise jurisdiction. A writ can similarly be issued where in exercise of jurisdiction conferred on it, the Court or Tribunal acts illegally or improperly, as for instance, it decides a question without giving an opportunity to be heard to the party affected by the order, or where the procedure adopted in dealing with the dispute is opposed to principles of natural justice. There is, however, no doubt that the jurisdiction to issue a writ of certiorari is a supervisory jurisdiction and the....
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....e Apex Court to the facts of the present case, the learned Counsel for the Petitioner has not been able to point out any specific Regulation or accounting standards which Respondent No. 1 has violated. 17. Learned Counsel for the Petitioner has drawn the attention of this Court to Paragraph 9.3.1 of the order passed by the Disciplinary Committee. Paragraph 9.3.1 of the said order reads as under:- "Para 9.3.1- However, from the documents on record, it appears that the Respondent had relied upon unaudited figures and further, the financial statements certified by CA. Mulraj D. Gala clearly indicates that it was provisional. Though the Respondent stated that it was audited financial statement as it was subject to audit report of CA. Mulraj D. Gala but he cannot bring on record copy of audit report signed by CA. Mulraj D. Gala. The Committee noted that as per para 5 (2) (j) of the afore-stated Guidance note, where the statement on which CA is required to give his report or certificate, includes some information which has not been audited, CA should clearly dictate in his report or certificate the particulars of such information. Further, as per para 6.4 of the Guidance note....