The Punjab and Haryana High Court stayed the disciplinary action against eight members of the managing committee of the Chandigarh branch of Northern India Regional Council (NIRC) of Institute of Chartered Accountants of India (ICAI) for accepting the resignation of the outgoing chairman.
Hearing a petition on behalf of the members of the managing committee, a Bench comprising judges Rajesh Bindal and Darshan Singh stayed the disciplinary action against the eight members initiated at the behest of ICAI president M. Devaraja Reddy for accepting the voluntary resignation of the outgoing chairman and appointing a new chairman.
In a recent managing committee meeting of the Chandigarh branch of NIRC of ICAI, the elected chairman resigned and a name proposed by the outgoing chairman was accepted and requested to take over as the new chairman.
The institute started disciplinary proceedings against the committee members following this. Mr. Reddy allegedly sent e-mails to the managing committee members threatening suspension or dissolution of branch and appointment of an administrator.
“Had the president dissolved the branch, it would have adversely affected several thousand of students being given coaching and training at the institute. Also, the court direction will go a long way in shielding the 157 branches of the ICAI from unwarranted intervention by the president in their day-to-day functioning.
It was in the larger interest of the institute that the managing committee members decided not to succumb to pressure and move the court against the directions of the president to initiate disciplinary proceedings,” said a senior officer-bearer of the ICAI, not willing to be named.
They face action
for accepting the resignation of the outgoing chairman
of the institute
