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HC allows ICAI Chandigarh branch to function under new chairman, seeks reply from national body on interference
September, 29th 2016

The Punjab and Haryana high court has stayed the disciplinary proceedings against the members of the managing committee of the Chandigarh branch of the Northern India regional council of the Institute of Chartered Accountants of India (ICAI) Chandigarh.
HC has also allowed the branch to continue its day to day operations under the Chairmanship of CA. Sahil Singla and further directed that all bills of Chandigarh Branch shall be cleared by Central Unit of ICAI. Division bench comprising Justice Rajesh Bindal and Justice Darshan Singh has passed these orders while hearing a petition filed by Managing committee of ICAI Chandigarh and its eight members.

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In its orders, released on Saturday, HC has also issued notice to the Secretary, union ministry of corporate affairs, President, ICAI New Delhi and other seeking their reply on the contentions raised by the members of Chandigarh branch of ICAI. They have been asked to file replies on January 19 before the high court.
In their petition, managing committee has informed the HC that in the meeting of the executive committee of the Chandigarh branch of the ICAI of Northern India Regional Council, the elected Chairman had resigned. The Vice-Chairman was requested to take over but on his refusal, the name of Sahil Singla proposed by the outgoing Chairman was accepted and he was requested to take over as Chairman on September 12, 2016.
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Saranathan Lakshminarasimhan
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According to the petitioners, the unanimous decision of managing committee to elect Sahil Singla as its chairman was being challenged by ICAI President CA M. Devaraja Reddy. According to the petitioners Reddy was sending threatening emails to the managing committee Members of Chandigarh Branch of suspension or dissolution of branch or appointment of an administrator etc. Following these, disciplinary action against all eight members was initiated on the behest of Reddy.

Seeking directions to quash the action of ICAI New Delhi for initiating disciplinary proceedings against members of Chandigarh branch, the petitioners has submitted before the HC that no such power is vested with ICAI. Hearing their plea, the bench issued notice to the Centre and ICAI New Delhi and held "In the meantime, the disciplinary action against petitioners shall remain stayed.

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