THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA versus VIMAL KUMAR SURANA AND ANOTHER

Citation: [2010] 14 S.C.R. 248 · Decided: 01-12-2010 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2010] 14 (ADDL.) S.C.R. 248 
A 
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF 
B 
c 
INDIA 
v. 
VIMAL KUMAR SURANA AND ANOTHER 
(Criminal Appeal Nos. 2263-2264 of 2010) 
DECEMBER 01, 2010 
[G.S. SINGHVI AND ASOK KUMAR GANGULY, JJ.] 
Chartered Accountants Act, 1949: 
ss. 2(d), 24, 24A, 25, 26 and 28 - Person qualifying the 
exam of Chartered Accountant but not a member of the Institute 
of Chartered Accountant of India - Person impersonating as 
Chartered Accountant, preparing audit reports and forged 
D seals - Criminal complaint before police against him alleging 
commission of offences punishable ulss. 419, 420, 468 and 
473 /PC - Prosecution under the provisions of Penal Code rl 
w ss. 24 and 26 of the Act - Trial court and High Court holding 
that even though prima facie case made out against the 
accused u/s. 24, 24A and 26, cognizance could not have been 
E taken on the basis of the complaint because no complaint was 
filed u/s. 28 ;and that he could not be prosecuted under the 
Penal Code - On appeal, held: If the particular act of a member 
or a non-member or a company results in contravention of the 
provisions contained ins. 24 or sub-section (1) of s.24A, 25 or 
F 26 of the Act and such act also amounts to an offence of 
criminal misconduct under /PC, then a complaint can be filed 
by or under the order of the Council uls. 28, which may result 
in punishment prescribed u/s. 24 or sub-section (2) of ss. 24A, 
25 or 26 - Such member or non-member or company can also 
G be prosecuted for any identified offence under /PC - There is 
no bar against prosecution of such person if he is charged with 
the allegations constituting offences under Penal Code or 
under other laws - Matter remitted to trial court to consider 
whether a/legations contained in the complaint constitute any 
H 
248 
INSTITUTE OF CHARTERED ACCOUNTANTS OF 
249 
INDIA v. VIMAL KUMAR SURANA 
offence under Penal Code - In the absence of a complaint ul A 
s. 28, no charges could be framed against chartered 
accountant for the alleged contravention of ss. 24, 24A or 26 -
Penal Code, 1860 - ss. 419, 420, 468 and 473. 
ss. 24A(2), 26 and 25(2) - Expression 'without prejudice 
8 
to any other proceedings which may be taken against him' in 
ss. 24A(2), 26 and s. 25(2) - Meaning of 
Criminal Law: 
Double jeopardy - Simultaneous prosecution of offender C 
for contravention of ss. 24, 24A and 26 of the 1949 Act and for 
the offences under the Penal Code - Permissibility of - Held: 
Simultaneous prosecution is permissible but in view of the bar 
contained in Article 20(2) of the constitution rlw s. 26 of the 1897 
Act and s.300 Cr.P.C., punishment twice for the same offence 
D 
is barred- Chartered Accountants Act, 1949- ss. 24, 24A, 26 
- Penal Code, 1860- Constitution of India, 1950- Article 20(2) 
- General Clauses Act, 1897 - s. 26. 
Interpretation of statutes: 
Construction of statutory provisions - Held: When there 
are two possible constructions of a statute, then the one which 
leads to anomaly or absurdity and makes the statute vulnerable 
to the attack of unconstitutionality should be avoided in 
preference to the other which makes it rational and immune 
from the charge of unconstitutionalJfy. 
E 
F 
The respondent qualified the exam of Chartered 
Accountant but was not a member of the appellant-
Institute. The appellant-Institute filed a complaint before 
G 
the police against the respondent alleging cheating by 
impersonation, forgery and counterfeiting of seal of the 
Institute, punishable under Sections 419, 468, 471and472 
IPC. The police filed the challan before the Magistrate. The 
trial court held that there was no basis for framing any 
H 
250 
SUPREME COURT REPORTS [20~0] 14 (ADDL.) S.C.R. 
A charge against the respondent under IPC; and cognizance 
of offences under Sections 24 and 26 of the Act could not 
be taken because no complaint was filed by or under the 
order of the Council of the appellant-Institute, before the 
Magistrate. Aggrieved, the appellant filed revisions. The 
B Single Judge of the High Court dismissed the same. 
Therefore, the appellant-institute filed the instant appeals. 
Allowing the appeals and remitting the matter to the 
trial court, the Court 
C 
HELD: 1.1. Section 24 of the Chartered Accountants 
Act, 1949 provides for punishment of a person who is not 
a member of the Institute, but represents himself as a 
member of the Institute or uses the designation of 
chartered accountant. Similar punishment can be 
D

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