Legal Briefs | Telangana HC admits plea to quash ICAI’s disciplinary proceedings

Hyderabad: A two-judge bench of the Telangana High Court admitted a writ appeal filed by Institute of Chartered Accountants of India (ICAI) and others challenging quashing of a prima facie opinion of ICAI’s disciplinary directorate against a chartered accountant alleged of misconduct being financial advisor of Y.S. Jagan Mohan Reddy.

The two-judge bench comprised Chief Justice Alok Aradhe and Justice J. Sreenivas Rao.

Earlier, a writ plea was filed by V. Vijay Sai Reddy, challenging a prima facie opinion of the disciplinary directorate was quashed. The committee, while deliberating on the prima facie opinion, noted that the petitioner is alleged of various misconduct in the capacity of being financial advisor of Y.S. Jagan Mohan Reddy and his group companies and that in the prima-facie opinions he was, inter-alia, held prima-facie guilty of professional misconduct falling within the meaning of Clause(7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.

The single judge while quashing the prima facie opinion said examined in detail various provisions pertaining to the Chartered Accountants Act, 1949. It ruled that such prima facie opinion is devoid of any merits since such conclusion against the petitioner had been arrived at by the respondent in a mechanical manner and not in an objective manner.

In the appeal, it was contended by the ICAI that the single judge ought to have appreciated that the power of judicial review was not available at the stage of prima facie opinion. The bench, however, refused to grant ex parte order of suspension to the impugned order and directed Vijay Sai Reddy to file his response within two weeks.

TRANSPORTATION TENDER SET ASIDE

Justice P. Madhavi Devi of the Telangana High Court set aside a transportation tender of the Telangana Civil Supplies Corporation. The judge allowed a writ plea filed by the Lorry Owners and Welfare Association Society, Bhainsa, questioning the award of the relevant tender by the corporation in favour of M/s Bhainsa Logistic Service. The petitioner pointed out that the impugned award of the tender suffered multiple legal infirmities. He said that the successful bidder was awarded the tender even though the higher agreements for the lorries in question expired during the tender period. The senior counsel also pointed out that even the partnership deed filed by the successful bidder and the manner it was taken on record raised serious questions of legality. Documents filed by the tenderer were also improperly stamped. Consequently the petitioner wondered how the contract could have been awarded. Justice Madhavi Devi allowed the writ petition and directed the tender for transport contractor for Bhainsa sector of Nirmal district be awarded in favour of the petitioner, the Lorry Owners and Welfare Association Society, Bhainsa.

KARIMNAGAR POLICE TOLD TO PROVIDE PROTECTION TO LAND

Justice B. Vijaysen Reddy of the Telangana High Court directed Karimnagar district police authorities to provide police protection for the land of an agriculturist in Himmathnagar Village of Karimnagar. The judge passed the interim order in a writ plea filed by Dondapati Sampath Reddy, alleging inaction of police authorities in not providing police protection for the agricultural lands of the petitioner despite an order of a civil court. The petitioner alleged that the actions of the respondent authorities is illegal, arbitrary and in violation of the Constitution. After hearing the counsel for the petitioner, the judge directed the police authorities to provide protection to the lands of the petitioner after considering his representation in three days.