In Brief
The Institute of Chartered Accountants of India appealed against a High Court order that quashed disciplinary action against an accountant (Rathi) for issuing raw material consumption certificates without examining underlying records. The Disciplinary Committee had found professional misconduct under the Chartered Accountants Act, 1949, and recommended reprimand. The Supreme Court upheld the High Court's decision, finding no material evidence that the units overpaid or that certificates were manipulated. Crucially, neither the complainant nor the Disciplinary Committee produced the units' books of accounts for examination, making it improper to draw adverse inferences against the professional. The appeal was dismissed."
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