H. A. K. RAO, CHARTERED ACCOUNTANT vs COUNCIL OF INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, N

The Supreme Court upheld the validity of a notification issued by the Council of the Institute of Chartered Accountants under Clause (ii) of Part II of the Second Schedule to the Chartered Accountants Act, 1949, which classified certain electoral activities as professional misconduct. The Court clarified that while issuing manifestoes or circulars does not constitute undue influence under Regulation 54-A(2), it can still be categorized as misconduct under the Council's authority. The Court affirmed that the notification was consistent with the Act and Regulations, thereby rejecting the appellant's claims of illegality.