High Court of Karnataka appointed Chartered Accountant (respondent No. 3) for purposes of verification of books and papers of three transferor companies in connection of a merger scheme and to submit his report. High Court accepted report and had sanctioned merger- Petitioner filed a complaint against Respondent No. 3 alleging that Respondent No. 3 had committed professional misconduct and submitted incorrect reports after scrutiny of books and papers of certain companies- ICAI, however rejected said complaint . Dismissing the petition the Court held that there was no infirmity in view taken by Disciplinary Committee of Institute of Chartered Accountants that as Respondent No. 3 was appointed by Karnataka High Court and reports were submitted to the Karnataka High Court, it was only High Court of Karnataka, which could take a view on reports submitted by Respondent No. 3 .
Wholesale Trading Services (India) (P.) Ltd. v. ICAI (2021) 280 Taxman 299 (Delhi)(HC)Wholesale Trading Services (India) (P.) Ltd. v. ICAI (2021) 280 Taxman 299 (Delhi)(HC)
Chartered Accountants Act, 1949
S. 22 : Professional or other misconduct –Merger – High court appointed the Auditor and report was accepted – Rejection of complaint of the petitioner against the chartered Accountant by the Disciplinary Committee of ICAI is held to be justified . [ Art , 226 ]