ICAI Reprimands CA for Sending Abusive Messages in Professional Dispute

Key Takeaways:

1. Professional Dispute Escalation: A longstanding dispute between two Chartered Accountants has escalated, with both parties filing complaints against each other with the ICAI and other statutory authorities.

2. Allegations and Counterclaims: The case involves accusations of financial impropriety, defamation, and harassment, with the Respondent-CA alleged to have circulated abusive messages and audio recordings to professional associations, regulatory bodies, colleagues, and family members.

3. ICAI’s Verdict: The ICAI’s Board of discipline found the Respondent guilty of “Other Misconduct” under the Chartered Accountants Act, 1949, due to the circulation of abusive messages and failure to demonstrate remorse.

4. Legal Actions and Complexity: Legal actions, including criminal complaints and civil suits, have been initiated by both parties, adding complexity to the dispute and reflecting the gravity of the allegations and counterclaims.

Synopsis:

The case “Clearly unbecoming of a Chartered Accountant” involves a reprimand from the Institute of Chartered Accountants of India (ICAI) against a Chartered Accountant (CA) for sending abusive messages to another CA. The dispute between the two CAs has escalated, leading to accusations of financial impropriety, defamation, and harassment. The conflict originated from the Respondent-CA’s transition from a tenant to a property owner above the office of the Complainant-CA, facilitated by the latter. Additionally, the Complainant-CA introduced the Respondent to stock market trading through his brother’s company, a member of the National Stock Exchange since 2004. However, alleged losses incurred by the Respondent in the stock market prompted a deterioration in their relationship.

The Complainant-CA alleged that the Respondent circulated audio recordings and abusive messages to professional associations, regulatory bodies including SEBI, colleagues, and family members. Furthermore, the Respondent refused to repay a personal loan amount of Rs. 5 lakhs extended in 2016 and subsequently engaged in a campaign to tarnish the Complainant’s reputation. Additional accusations from the Complainant include the Respondent’s involvement in gambling activities and attempts to intimidate and harass him and his family members.

Legal actions, including criminal complaints and civil suits, have been initiated by both parties, adding complexity to the dispute. In response, the Respondent denied the allegations of financial indebtedness and asserted that the Complainant initiated the confrontational exchanges. He contended that the Complainant resorted to threats and intimidation tactics, leading him to retaliate with verbal abuse.

The ICAI’s Director (Discipline) found the Respondent guilty of circulating abusive messages against the Complainant, a decision upheld by the Board. Despite the Respondent’s claims of self-defense, the Board concluded that his conduct was unbecoming of a Chartered Accountant, as evidenced by the use of offensive language and failure to demonstrate remorse. The Board ruled that the Respondent was guilty of “Other Misconduct” under the Chartered Accountants Act, 1949, leading to the reprimand of the Chartered Accountant.

The case highlights the complexities and implications of professional disputes within the realm of Chartered Accountancy, as well as the standards of conduct expected from members of the profession. The ICAI’s ruling serves as a reminder of the ethical and professional responsibilities incumbent upon Chartered Accountants, and the consequences of conduct deemed unbecoming of the profession.

FAQ

Q1: What led to the ICAI’s ruling of “Other Misconduct” against the Respondent-CA?

A1: The ICAI’s ruling was based on the Respondent’s conduct, including the circulation of abusive messages and audio recordings to professional associations, regulatory bodies, colleagues, and family members, which was deemed unbecoming of a Chartered Accountant.

Q2: How did the dispute between the two Chartered Accountants originate?

A2: The dispute stemmed from a contentious relationship spanning several years, with allegations of financial impropriety, defamation, and harassment, further complicated by legal actions and counterclaims initiated by both parties.

Q3: What were the implications of the ICAI’s ruling on the Respondent-CA?

A3: The ICAI’s ruling of “Other Misconduct” against the Respondent-CA reflects the seriousness of the allegations and the Board’s assessment of the conduct as unbecoming of a Chartered Accountant, leading to reprimands and disciplinary actions.