Facts of the Case

A complaint was filed by CA Aditya Agarwal, Partner of M/s Agarwal & Rampal, against CA Seema Mehta, who was employed as Manager (Audit & Taxation) with the complainant firm since April 2012. The respondent left the firm in October 2013 to join another organisation. After her exit, disputes arose between the parties relating to handing over of pending work and professional correspondence.

It was alleged that during this period, the respondent sent several SMS messages, emails and WhatsApp communications to the complainant, his senior partners and family members using derogatory, abusive and threatening language. It was further alleged that the respondent made unsubstantiated allegations against the firm, threatened consequences, and communicated in a manner unbecoming of a Chartered Accountant.

Issues Involved

Whether the respondent used derogatory, abusive and un-parliamentary language in communications with professional colleagues and their family members while associated with a CA firm, and whether such conduct amounted to “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22.

Petitioner’s Arguments

The complainant contended that the respondent repeatedly sent abusive and threatening communications even after leaving the firm, causing harassment and bringing disrepute to the profession. It was argued that such conduct violated the Code of Ethics and standards of professional behaviour expected from a member of the Institute.

Respondent’s Arguments

The respondent denied the allegations and submitted that she had been subjected to harassment and humiliation during her employment. She contended that the communications were sent in response to provocation and pending issues relating to salary and resignation formalities. The respondent also submitted that she had apologised for certain communications and that there was no intention to malign the profession.

Court / Authority Order and Findings

The Board of Discipline examined the documentary evidence including copies of SMS messages, emails and WhatsApp communications produced on record. The Board observed that the language used by the respondent in several communications was clearly derogatory, abusive and un-parliamentary, and was addressed not only to the complainant but also to senior partners of the firm and family members.

The Board held that even if the respondent had grievances, the appropriate course was to approach a competent forum through legal remedies. Use of abusive language in professional communications was held to be wholly unjustified and unbecoming of a Chartered Accountant. The Board concluded that the respondent failed to maintain the highest standards of ethical behaviour expected of a member of the Institute, thereby bringing disrepute to the profession.

Important Clarification

The Board clarified that Chartered Accountants are expected to maintain dignity, restraint and professionalism in all communications, particularly when dealing with professional colleagues. Personal grievances or employment disputes do not justify use of derogatory or abusive language, which squarely amounts to “Other Misconduct” under the Act.

Final Outcome

The ICAI Board of Discipline held CA Seema Mehta (M. No. 511861) guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949. In exercise of powers under Section 21A(3) of the Act, by order dated 2 June 2022, the Board reprimanded the Respondent and imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only), payable within 60 days from receipt of the order.

Source Link-https://www.mytaxexpert.co.in/uploads/1768894655_CA.AdityaAgarwalVSCA.SeemaMehtaM.No.511861.pdf

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