Sital Prasad Swain v. Disciplinary Committee, Institute of Company Secretaries of India

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The Tax Publishers 2018 TaxPub(CL) 0891 (AAC) Sital Prasad Swain v. Disciplinary Committee, Institute of Company Secretaries of India COMPANY SECRETARIES ACT, 1980, --Appeal to Authority--Professional misconductNo due diligence exercised in certifying form-32 ----Where the company secretary failed to exercise due diligence while verifying and certifying Form-32, then, appeal filed against the order of sentence awarded by Disciplinary Committee was not maintainable.--A complaint was filed against the Company Secretary S alleging that professional misconduct had been committed by him. It was alleged that Board of Directors (BoD) in its meeting approved the appointment of one â€“ Bishender Singh as an additional director of the company but in the Form-32 certified by S, he had been shown under the category of “promoter” director inspite of additional director. Further, Form-32 showing the cessation of two directors was signed by Bishender Singh, though he was not a director of the company on that date. Disciplinary Committee (DC) held S guilty of committing misconduct and awarded punishment of reprimand and fine. Therefore, S filed appeal against the order. *Held:* Material on record established that S did not exercise due diligence in verifying and certifying Form-32 on both the occasions and as such he was gross negligent in the conduct of his professional duties. Hence, the appeal was dismissed while maintaining the order of sentence as awarded by DC. Company Secretaries Act, 1980, Sections 22E & 21B, Company Secretaries (Procedure of Investigations of Professional and Other Misconduct of Cases) Rules, 2007, Rule 19 *REFERRED :* FAVOUR : Against the appellant A.Y. : IN THE APPELLATE AUTHORITY-ICSI M.C. GARG CHAIRPERSON, PREETI MALHOTRA MEMBER, PRAVEEN GARG MEMBER, NAVRANG SAINI MEMBER Sital Prasad Swain v. Disciplinary Committee, Institute of Company Secretaries of India Appeal No. 07/ICSI/2017 4 August, 2018 Appellant by: Kamal Bansal, Advocate along-with Sital Prasad Swain, Appellant in Person Respondent(s) by: R.D. Makheeja, Advocate along-with Satish Kumar, Executive Law and Gaurav Tandon, Assistant Secretary (Law) appearing for ICSI SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2018 TaxPub(CL) 0891 (AAC)

Sital Prasad Swain v. Disciplinary Committee, Institute of Company Secretaries of India

COMPANY SECRETARIES ACT, 1980,

--Appeal to Authority--Professional misconductNo due diligence exercised in certifying form-32 ----Where the company secretary failed to exercise due diligence while verifying and certifying Form-32, then, appeal filed against the order of sentence awarded by Disciplinary Committee was not maintainable.--A complaint was filed against the Company Secretary S alleging that professional misconduct had been committed by him. It was alleged that Board of Directors (BoD) in its meeting approved the appointment of one â€“ Bishender Singh as an additional director of the company but in the Form-32 certified by S, he had been shown under the category of “promoter” director inspite of additional director. Further, Form-32 showing the cessation of two directors was signed by Bishender Singh, though he was not a director of the company on that date. Disciplinary Committee (DC) held S guilty of committing misconduct and awarded punishment of reprimand and fine. Therefore, S filed appeal against the order. Held: Material on record established that S did not exercise due diligence in verifying and certifying Form-32 on both the occasions and as such he was gross negligent in the conduct of his professional duties. Hence, the appeal was dismissed while maintaining the order of sentence as awarded by DC.

Company Secretaries Act, 1980, Sections 22E & 21B,

Company Secretaries (Procedure of Investigations of Professional and Other Misconduct of Cases) Rules, 2007, Rule 19

REFERRED :

FAVOUR : Against the appellant

A.Y. :

IN THE APPELLATE AUTHORITY-ICSI

M.C. GARG CHAIRPERSON, PREETI MALHOTRA MEMBER, PRAVEEN GARG MEMBER, NAVRANG SAINI MEMBER

Sital Prasad Swain v. Disciplinary Committee, Institute of Company Secretaries of India

Appeal No. 07/ICSI/2017

4 August, 2018

Appellant by: Kamal Bansal, Advocate along-with Sital Prasad Swain, Appellant in Person

Respondent(s) by: R.D. Makheeja, Advocate along-with Satish Kumar, Executive Law and Gaurav Tandon, Assistant Secretary (Law) appearing for ICSI