The Kerala High Court besides held that the ICAI upon the retired CA’s right to exercise rules that ICAI acknowledges the retirement of the CAs from his past firms and permits the enrollment of his new firm will disrupt his right to practice.
The applicant was the working partner of 3 member partnership on will and the other 2 members were inactive in operating the firm.
The applicant furnishes the application to the Institute for Chartered Accountants of India (ICAI) online to dissolve the partners however the provisional body urged the confirmation of OTP through the other partners. The other application furnished through the applicant to enroll in the new partnership was also not permitted citing the cause that he was in charge of the other partnership. His effort to enroll his company as an individual proprietorship is refused for a similar cause.
This urged is if the Institute for Chartered Accountants of India can force the chartered accountant to carry in the partnership of Chartered Accountants despite post to the dissolution of the Partnership Firm or retirement of the Chartered Accountant, through keeping these unwilling partner in the partnership company so to enroll the partnership maintained through the ICAI.
Upon the concern of ICAI Justice N.Nagaresh stated that as the evidence from the law was only purpose to control trade names or company names and revised them. The other concern with respect to the enrollment and regulation of the partnership company of chartered accountants, like any other partnerships, will be administered through the Partnership Act of 1932.
“The legal position under the Indian Partnership Act being so, the 1st respondent Institute (ICAI) cannot take a stand that they will not recognize such retirement for the purpose of Regulation 190 of the Chartered Accountant Regulations,” the judgment stated.
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Court declared that this decision of ICAI shall revoke the fundamental right of the applicant to exercise the profession openly, guaranteed to him beneath Article 19(1)(g) of the Constitution of India.