COUNCIL OF HE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA vs SHRI S.N. SHIVAKUMAR

Judgment text excerpt

$~11 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 14.01.2026 + CHAT.A.REF 1/2018 COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA .....Petitioner Through: Ms. Pooja M. Saigal, Sr. Advocate with Ms. Ananya Choudhary and Mr. Ankit Mittal, Advocates. versus SHRI S.N. SHIVAKUMAR .....Respondent Through: None. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT DINESH MEHTA, J. (ORAL) 1. The present reference has been preferred under Section 21(5) of the Chartered Accountants Act, 1949 (hereinafter referred to as ‘Act of 1949’) seeking confirmation of the punishment that has been imposed upon the respondent-a chartered accountant to the effect of removal of his name from the register of members of the Council of the Institute of Chartered Accountants of India (hereinafter referred to as ‘the Institute’) for a period of three months. 2. The facts giving rise to this reference are, that the Reserve Bank of India (hereafter referred to as ‘RBI’), sent a communication dated 20.10.2006 informing the Institute that the audit report as furnished by Signature Not Verified Digitally Signed CHAT.A.REF 1/2018 Page 1 of 5 By:NAVEEN KUMAR Signing Date:16.01.2026 17:19:40 Escorts Finance Limited (hereafter referred to as ‘Company’) through its statutory auditors i.e. M/s N.M. Raiji & Co.(of which respondent is a partner) for the Financial Year 2004-2005, does not give true, correct and complete disclosure with respect to the liability of the company on account of public deposits and ever greening of the assets by the company. 3. Acting on the aforesaid communication, the institute issued a notice dated 04.06.2008 to the respondent. In response thereof, the firm furnished a reply dated 08.08.2008, with which, the Institute was not ful