Using objectionable, derogatory, and abusive language, or making irrelevant, incoherent, and irresponsible statements, constitutes 'other misconduct'.

Key Takeaways:

- The ICAI upheld the principle that chartered accountants must maintain professional decorum and refrain from conduct unbecoming of the profession.

- Disputes between professionals should be resolved through appropriate channels, without resorting to offensive language or harassment.

- The disciplinary action serves as a reminder of the high ethical standards expected from chartered accountants.

Detailed Narrative:

A long-standing dispute between two chartered accountants (CAs) escalated to an unprecedented level, prompting the intervention of the Institute of Chartered Accountants of India (ICAI). The contentious relationship, spanning several years, involved allegations of financial impropriety, defamation, and harassment from both parties.

The conflict stemmed from a transition in the professional and personal relationship between the two CAs. Initially, one CA facilitated the other’s move from a tenant to a property owner above his office. Additionally, the first CA introduced the second to stock market trading through his brother’s company, a member of the National Stock Exchange.

However, the relationship soured when the second CA allegedly incurred losses in the stock market. Accusations and counter-accusations followed, with claims of financial indebtedness, involvement in gambling activities, and attempts to tarnish reputations through intimidation and harassment.

The situation escalated further when one of the CAs circulated audio recordings and abusive messages to professional associations, regulatory bodies, colleagues, and family members. Legal actions, including criminal complaints and civil suits, were initiated by both parties, adding complexity to the dispute.

The ICAI’s Director (Discipline) found the CA who circulated the abusive messages guilty of misconduct, a decision upheld by the Board of Discipline. Despite claims of self-defense, the Board concluded that the CA’s conduct was unbecoming of a chartered accountant, as evidenced by the use of offensive language and failure to demonstrate remorse.

Citing a precedent case, the Board emphasized that the use of objectionable, derogatory, and abusive language, as well as irrelevant, incoherent, and irresponsible statements, constitutes “other misconduct” under the Chartered Accountants Act, 1949.

Consequently, the ICAI reprimanded the CA for their unbecoming conduct, serving as a reminder of the high ethical standards expected from professionals in the accounting field.

FAQs:

Q1: What constitutes “conduct unbecoming of a chartered accountant”?

A1: Conduct unbecoming of a chartered accountant includes actions that violate the profession’s ethical standards, such as the use of offensive language, harassment, or behavior that brings disrepute to the profession.

Q2: What are the potential consequences of such misconduct?

A2: Depending on the severity of the misconduct, chartered accountants may face disciplinary actions from the ICAI, ranging from reprimands to suspension or even expulsion from the institute.

Q3: How can disputes between professionals be resolved appropriately?

A3: Disputes between professionals should be addressed through proper channels, such as mediation, arbitration, or legal proceedings, while maintaining professional decorum and avoiding offensive or harassing behavior.

Key Precedents:

The ICAI’s decision in this case was guided by the precedent set in the case of Bhattacharjee vs. B.K. Chakraborty, where the Council’s decision dated 11th to 13th February, 1988, and the subsequent judgment dated 10th June, 1996, established that the use of objectionable, derogatory, and abusive language, as well as irrelevant, incoherent, and irresponsible statements, constitutes “other misconduct” under the Chartered Accountants Act, 1949.