Facts of the Case

A complaint was filed by Ms. Sangeetha B., Erode, against CA M. Bala Balaji alleging professional misconduct on the ground of moral turpitude. The complainant alleged that the Respondent married her on 09 February 2014 while his first marriage with Ms. Balachandrapriya Rajesha, solemnised on 20 February 2008, was still subsisting and had not been dissolved by a decree of divorce at that time.

The Respondent’s first divorce petition (H.M.O.P. No. 116/2009) was dismissed for default, and the marriage was legally dissolved only later on 01 April 2016 by the Hon’ble Subordinate Judge, Sathyamangalam. Despite this, the Respondent entered into a second marriage with the complainant in 2014. The complainant alleged that this act of bigamy constituted moral turpitude and brought disrepute to the profession of Chartered Accountants.

Multiple proceedings were initiated between the parties, including domestic violence proceedings, criminal complaints, appeals and settlement agreements. The Board of Discipline examined the entire sequence of matrimonial events, court orders and submissions made by both parties.

Issues Involved

Whether contracting a second marriage during the subsistence of a valid first marriage amounts to moral turpitude, whether such conduct brings disrepute to the profession of Chartered Accountants, and whether it constitutes “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949.

Complainant’s Arguments

The complainant contended that the Respondent knowingly married her while his first marriage was legally subsisting, thereby committing bigamy under Sections 494 and 495 of the Indian Penal Code. It was argued that such conduct amounts to moral turpitude and is wholly unbecoming of a Chartered Accountant. The complainant relied upon court records, marriage certificates and judicial orders to establish that the first marriage had not been dissolved at the time of the second marriage.

Respondent’s Arguments

The Respondent contended that the complainant made false allegations and that matrimonial disputes were being unnecessarily converted into disciplinary proceedings. He argued that family disputes should not be treated as professional misconduct and relied on settlement agreements entered into between the parties. The Respondent also contended that criminal proceedings were pending or had resulted in compromise and that no competent criminal court had convicted him for bigamy.

Court / Authority Order and Findings

The Board of Discipline examined court records, marriage certificates, orders passed in matrimonial proceedings and the timeline of events. The Board noted that the Respondent’s first marriage was legally subsisting on the date of his second marriage with the complainant and that the divorce was granted only on 01 April 2016.

The Board relied upon judicial precedents including decisions of the Hon’ble Supreme Court holding that bigamy constitutes moral turpitude. The Board observed that even though the misconduct was personal in nature, it had a direct bearing on the dignity and reputation of the profession. The Board held that conduct involving moral turpitude, even outside professional work, brings disrepute to the profession and falls within the ambit of “Other Misconduct”.

Important Clarification

The Board clarified that Chartered Accountants are expected to maintain high moral standards not only in professional work but also in personal conduct. Acts involving moral turpitude such as bigamy are incompatible with the dignity of the profession and constitute professional misconduct irrespective of whether such acts are directly connected with professional assignments.

Final Outcome

The ICAI Board of Discipline held CA M. Bala Balaji (M. No. 215450) guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22. In exercise of powers under Section 21A(3) of the Act, by order dated 22 May 2023, the Board directed removal of the name of the Respondent from the Register of Members for a period of three (3) months and imposed a monetary penalty of ₹1,00,000 (Rupees One Lakh only).

Source Link- https://www.mytaxexpert.co.in/uploads/1768820927_Ms.SangeethaB.ErodevsCA.M.BalaBalajiM.No.215450AbuDhabiUAE.pdf

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