Disciplinary Proceedings under Section 21 of the Company Secretaries Act, 1980 – Manoj H. Shah vs Mahesh Palimkar | Board of Discipline Final Order (DC/430/2018)

 

Matter (Professional Language — Meaning Preserved)

Facts of the Case

A complaint was filed before the Board of Discipline of the Institute of Company Secretaries of India under Section 21 of the Company Secretaries Act, 1980 alleging professional misconduct by the Respondent, a Company Secretary in practice.
The complaint related to professional services rendered by the Respondent in his professional capacity and alleged failure in compliance with professional standards and duties expected from a practicing Company Secretary.

The Director (Discipline) examined the complaint and the material available on record and placed the matter before the Board of Discipline for adjudication.

Issues Involved

  1. Whether the Respondent was guilty of professional or other misconduct under the Company Secretaries Act, 1980.
  2. Whether professional duties were discharged with due diligence and adherence to statutory requirements.
  3. Whether the conduct of the Respondent violated professional ethics and standards prescribed for members in practice.

 

Petitioner’s Arguments

  • The Respondent failed to perform professional obligations with the level of care and diligence required from a Company Secretary in practice.
  • Statutory and procedural requirements were not properly complied with.
  • The alleged acts amounted to professional misconduct under the governing provisions of the Act and disciplinary rules.

 

Respondent’s Arguments

  • The Respondent denied the allegations and contended that professional duties were performed based on records and information made available.
  • It was submitted that there was no intentional negligence or misconduct.
  • The Respondent argued that the complaint lacked sufficient basis to establish professional misconduct.

 

Court / Board Order (Findings)

The Board of Discipline evaluated:

  • Written submissions
  • Documents placed on record
  • Principles of natural justice
  • Professional obligations of a Company Secretary

After considering the material available, the Board arrived at its conclusion regarding whether the Respondent was guilty or not guilty of professional misconduct and passed the final order accordingly in accordance with disciplinary provisions of the Act.

 

Important Clarification

The Board reiterated that disciplinary proceedings under the Company Secretaries Act are quasi-judicial in nature and determination of misconduct depends upon:

  • Evidence on record
  • Professional standards expected from a Company Secretary
  • Due diligence in discharge of duties

The burden lies on evaluation of conduct rather than intention alone.

 

Sections Involved

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