Judgment:
S.B. Sinha, J
1. Appellant No.1 herein is a
Society registered under the Andhra Pradesh (Telangana Area) Public
Societies Act, 1350F. At the time of its registration it was known as
'Institute of Certified Financial Analysts', which was changed to 'The
Institute of Chartered Financial Analysts of India'. Appellants contend
that it offers the Chartered Financial Analyst Course/Programme, which
is entirely different from that offered by Respondent No.1 It has sought
for opinion from the Director General of Investigation and Registration
in terms of Sections 11 and 36 of the Monopolies and Restrictive Trade
Practices Act, 1969 on 11.02.1988, whereto a reply was sent by the
appellants on 24.02.1988. A notice, however, was published in the
journal of Respondent No.1 herein, wherein a purported caution to
members about the appellant-Institute was published in the following
terms:
"It has come to the notice of the
Institute that the Institute of Chartered Financial Analysts of India,
Hyderabad is conferring the designation of "Chartered Financial Analyst"
and permitting its members to use the letters 'C.F.A.' after their
names. The Additional Solicitor General of India has opined that the
designation "Chartered Financial Analyst", would seem to be similar to
the designation Chartered Accountant especially when the letters 'C.F.A.'
are added to the name, which is very close to the letters 'F.C.A.'
conferred by the Institute of Chartered Accountants of India. He has
further opined that the activities of the Institute of Chartered
Financial Analysts of India are violative of Section 24A of the
Chartered Accountants Act, 1949. The Institute has already filed an
application under Section 36 of the MRTP Act, 1969 with the Director
General, MRTP Commission, New Delhi against the activities of the said
Institute and the matter is under investigation by the Commission."
2. It is, however, not in dispute
that no investigation was initiated by the MRTP Commission in that
behalf. A notice was sent by Appellant No.1 to Respondent No.1, asking
for a copy of the opinion of the Additional Solicitor General so as to
enable it to know the facts placed before him for his opinion. But no
response was received thereto. A reminder thereto was sent on 15.06.1989
and by a letter dated 11.07.1989, the Secretary of Respondent No.1
refused to send the copies of the case and the opinion of the Additional
Solicitor General. On or about 03.08.1989, a notification was issued by
Respondent No.1 herein prescribing that if any member of the
Respondent-Institute i.e. any Chartered Accountant, who obtained the
qualification of the Chartered Financial Analyst on or after 01.01.1990;
or having obtained the said qualification earlier did not surrender the
same before the said date, would be held to be guilty of professional
misconduct in term of the provisions of the Chartered Accountants Act,
1949 (for short, 'the Act').
3. A writ petition was filed before
the Andhra Pradesh High Court by Appellant No.1 herein on or about
16.11.1989. The said writ petition was dismissed by a learned Single
Judge by a judgment and order dated 21.11.1990, inter alia, opining:
"The proviso to a section cannot be
expected to nullify the effect of the main Section. The proviso must be
treated as an exception and subservient to the object sought to be
achieved by the main Section. Under Appendix No. (8) it was agreed that
the Institutes previously recognized under the Auditor's Certificate
Rules, 1932, be recognized for the purposes of Section 7 for the use of
letters, F.S.A.A. Further the Council decided that letters or
description in respect of membership of bodies other than Accountancy
Institutes can be used provided such use does not amount to the use of
designation and in the case of Accountancy Institutes prior recognition
of the Council in this behalf is necessary. It was also decided that in
respect of Accountancy Institutes prior recognition of the Council in
this behalf is necessary. It was also decided that in respect of
Accountancy Institutes, which are recognized and in respect of
Institutes other than Accountancy Institutes the word 'London' in
brackets may be allowed to be added provided that in each case the
respective Institutes had permitted such addition. The Council also
decided that the Institute of Costs and Works Accountants is not an
Accountancy Institute within the meaning of Section 7 and therefore
there was no bar to the use of these letters by the members of that
Institute, if they happen to be their members.
A combined reading of Section 7 and
the Appendix (8) makes it clear that Chartered Accountants who have been
registered as members of the 1st respondent-Institute alone are
permitted to use the letters or description which are recognized by it.
Therefore it is clear that the designation of 'Chartered Financial
Analyst' is not recognized by the 1st respondent-Institute or for that
matter by the Central Government or by any Statute. Therefore, under
Section 24A of the Act the 1st respondent-Institute can impose
restrictions on all the members of the 1st petitioner-Institute not to
use the unrecognized diploma or designation that has been awarded by the
1st petitioner-Institute. Section 24A clearly provides penalty for using
the name of the Council, awarding degree of Chartered Accountancy etc.
Section 24A of the Act reads as follows:
"24A.-Penalty for using name of the
Council awarding degree of chartered accountancy, etc.:"(1) Save as
otherwise provided in this Act, no person shall
(i) use a name or the common seal
which is identical with the name or the common seal of the Institute or
so nearly resembles it as to deceive or as is likely to deceive the
public;
(ii) award any degree, diploma or
certificate or bestow any designation which indicates or purports to
indicate the position or attainment of any qualification or competence
similar to that of a member of the Institute; or
(iii) seek to regulate in any manner
whatsoever the profession of chartered accountants."
Sub-section (2) of Section 24A deals
with the penalty to be imposed in case of contravention of the
provisions of sub-section (1). Under sub-section (3) it is stated that
nothing contained in this section shall apply to any University
established by law or to any body affiliated to the Institute. The 1st
respondent-Institute can also impose restrictions on its own members and
also impose penalty for using the name of the Council, awarding degree
of chartered accountancy. Section 24 deals with the penalty for falsely
claiming to be a member of the Institute (R-1)
According to the petitioners, the
course of study that is being taught at the Institute is different. But
the 1st respondent Institute contends that the course of study is
similar. The respondents filed an Annexure-X to the counter giving a
comparative table of syllabi of ICFAI and ICAI. But one should not
forget the fact that the 1st respondent-Institute has got authority to
change the syllabus from time to time depending upon the changes in the
economic environment in the national and international sphere and the
Chartered Accountants can function not only as Accountants, Auditors,
Financial Advisors, but also as Financial Analysts. The Chartered
Accountancy course is fairly exhaustive and includes areas in financial
and investment management, micro economics and security evaluation,
project appraisal and Indian financial system.
Section 2(b) of the Act defines
'Chartered Accountant' as to mean a person who is a member of the
Institute and the persons who have passed such examination and complete
such training as may be prescribed for members of the Institute shall be
entitled to have their names entered in the Register of the Institute
and no member of the Institute shall be entitled to practice whether in
India or elsewhere unless he has obtained from the Council a Certificate
of practice. According to Section 7, every member of the Institute in
practice shall, any other member may, use the designation of a chartered
accountant and no member using such designation shall use any other
description, whether in addition thereto or in substitution therefor.
The members of the Institute are divided into two classes viz.,
associates and fellows. Any person whose name is entered in the Register
is deemed to have become an associate member of the Institute and is
entitled to use the letters "A.C.A." after his name to indicate that he
is an associate member of the Institute of Chartered Accountants. A
member, being an associate, who has been in continuous practice in India
for at least five years as a Chartered Accountant is entitled to use the
letters F.C.A. after his name to indicate that he is a fellow of the
Institute of Chartered Accountants and his name will be entered in the
Register as a fellow of the Institute."
It was further held:
"There are many Analysts in different fields such as Food Analyst and
Chemical Analyst. But when the 1st petitioner-Institute is dealing with
the accountancy profession and training people in one form or the other,
the 1st respondent-Institute which is a statutory body is perfectly
justified in restraining their own members in using some other
designation which is akin or which resembles the designation along with
the designation that is being conferred by the 1st respondent-Institute,
which will give rise an impression in the minds of the general public or
the persons connected with the accountancy profession that the
designation 'C.F.A.' is an additional qualification to the persons that
were already holding 'C.A.' or 'F.C.A.'. Such preference cannot be taken
advantage of by the members of the 1st respondent-Institute and Section
24A of the Act gives ample power to the 1st respondent-Institute to
issue the impugned Notification as well as the 'caution'.
4. A writ appeal filed thereagainst
was dismissed by a Division Bench of the High Court relying on or on the
basis of a decision of this Court in Dr. Haniraj L. Chulani v. Bar
Council of Maharashtra & Goa [JT 1996 (4) SC 162 : (1996) 3 SCC 342],
holding:
" In the instant case too what is
sought to be prevented is membership of a Chartered Accountant, who is
governed by the Chartered Accountants Act, 1949 from being a member of
the 1st appellant-institution and should a Chartered Accountant not like
this imposition, he may be free to resign from being a Chartered
Accountant and then can be free to choose to be a member of any other
institution including that of the 1st respondent. But, so long as he
continues to be the Chartered Accountant under the Act, his degree and
practice can be regulated only under the provisions of the said Act. The
authorities under the Act also found that the degree of C.F.A. affixed
is causing confusion and gullible public may be misguided and in order
to streer clear off such confusion and in larger public interest, the
authorities thought that the Chartered Accountants registered under the
Act and governed by the Council of the Institute of Chartered
Accountants of India not to acquire the C.F.A. and if already acquired,
shed the said membership. Having regard to the reasons stated in the
impugned notification as also the reasoning given by the learned single
Judge, it cannot be said that there is no nexus for the object to be
achieved and that the impugned notification is irrational. Fundamental
right to practice a profession guaranteed under Article 19(1)(g) of the
Indian Constitution can always be hedged with restrictions; but the said
restrictions should be reasonable restrictions and in the instant case,
having regard to the facts and circumstances discussed and legal it
cannot be said that the restrictions imposed are unreasonable so as to
negate the fundamental rights of the Chartered Accountants to practice
their profession."
5. Mr. K.K. Venugopal, the learned
Senior Counsel appearing on behalf of the appellants, would submit :
i.) The High Court committed a
manifest error in passing the impugned judgment insofar as it failed to
take into consideration that in terms of Section 7 of the Act any
Chartered Accountant whether in profession or not is entitled to use any
degree and in that view of the matter, the prohibition purported to have
been imposed by reason of the impugned notification dated 03.08.1989
must be held to be arbitrary.
ii) The said notification is
violative of a person's fundamental right guaranteed under Article
19(1)(g) of the Constitution of India.
iii) The power to issue such a
notification being hedged with excessive delegattion, the same would
otherwise be ultra vires Article 14 of the Constitution of India.
6. Mr. S. Ganesh, the learned Senior
Counsel appearing on behalf of the respondents, on the other hand, would
submit :
i) Section 7 of the Act prohibits a Chartered Accountant from using any
other description, whether in addition thereto or in substitution
thereof. A Chartered Accountant is, therefore, prohibited from using the
description 'Chartered Financial Analyst' or its abbreviation 'CFA'.
ii) Proviso to Section 7 permits a
Chartered Accountant to add a description or letters to his name to
indicate membership of another Institute of Accountancy, only if that
other Institute, has been recognized by the Council and not otherwise.
Consequently, addition of a description or letters to indicate
membership of a non-recognized Institute of Accountancy is prohibited,
even by the proviso to Section 7 of the Act. The 'other qualification'
occurring to in the latter part of the proviso to Section 7 refers to
the qualification other than membership of an Institute of Accountancy
such as LL.B., Ph.D, MBA, MBBS etc. The proviso cannot possibly be so
construed as to nullify completely the prohibition in the opening part
of Section 7.
iii) The appellant Institute is an
Institute of Accountancy because :
(a) There is a very substantial overlapping of the curriculum of the
ICFII and that of ICAI.
(b) A Chartered Accountant is
exempted from giving 3 out of the 6 examination papers of the ICFAI.
(c) Strictly financial analysis is
only study and analysis of accounts.(d) A Chartered Accountant is
trained to do financial analysis and ordinarily does it as part of his
practice of accountancy.
iv) In any event, the considered
view of the ICAI that ICFAI is an institute of accountancy should not be
interfered with by the Court, having regard to the materials on record
and expertise of the Institute in the field of accountancy in general.
v) The ICAI is also of the
considered view that the diploma/certificate bestowed by ICFAI does
indicate 'the position or attainment of any qualification or competence
similar to that of a member of the Institute' which attracts the
prohibition in Section 24A(1)(ii) of the Act.
vi) Further, the letters 'CFA'
closely resemble 'FCA' and are capable of misleading the lay public and
also conveying the entirely erroneous impression that a FCA with a CFA
is superior to a mere 'FCA'. This will directly result in the dilution
and debasement of the value of the membership of the Institute.
vii) Item No. (i) of Part II of the
Second Schedule makes it clear that contravention of any provision of
the Act or of the regulations made thereunder would amount to a
misconduct. Section 22 defines 'professional misconduct' in the widest
possible terms. This Hon'ble Court has also read and construed Section
22 and clause (ii) of Part II of the Second Schedule in the broadest
manner.
viii) The impugned notification
seeks to make effective the prohibition contained in Sections 7 and 24A
of the Act, the constitutional validity of which has not been challenged
by the appellant before the High Court. The notification is, therefore,
not unreasonable or arbitrary.
7. The Act was enacted to make
provision for the regulation of the profession Chartered Accountants.
Section 2 thereof provides for definition clause. 'Institute' has been
defined in Section 2(e) of the Act to mean the Institute of Chartered
Accountants of India constituted under thereunder. Sub-section (2) of
Section 2 creates a legal fiction to define a member of the Institute to
be in practice, when individually or in partnership with Chartered
Accountants (in practice) as a person in consideration of remuneration
received or to be received . Sub-Section (2) of Section 2 of the Act
reads as under :
"A member of the Institute shall be deemed "to be in practice", when
individually or in partnership with chartered accountants (in practice),
he, in consideration of remuneration received or to be received
(i) engages himself in the practice
of accountancy; or
(ii) offers to perform or performs
services involving the auditing or verification of financial
transactions, books, accounts or records, or the preparation,
verification or certification of financial accounting and related
statements or holds himself out to the public as an accountant; or
(iii) renders professional services
or assistance in or about matters of principle or detail relating to
accounting procedure or the recording, presentation or certification of
financial facts or data; or
(iv) renders such other services as,
in the opinion of the Council, are or may be rendered by a chartered
accountant (in practice) and the words "to be in practice" with their
grammatical variations and cognate expressions shall be construed
accordingly.
Explanation.- An associate or a
fellow of the Institute who is a salaried employee of a chartered
accountant (in practice) or (a firm of such chartered accountants)
shall, notwithstanding such employment, be deemed to be in practice for
the limited purpose of the training of articled clerks."
8. Section 3 of the Act provides for
incorporation of the Institute. Section 7 of the Act, which is relevant
for determination of the case, reads under:
"7. Members to be known as Chartered
Accountants Every member of the Institute in practice shall, and any
other member may, use the designation of a chartered accountant and no
member using such designation shall use any other description, whether
in addition thereto in substitution therefor:
Provided that nothing contained in
this section shall be deemed to prohibit any such person from adding any
other description or letters to his name, if entitled thereto, to
indicate membership of such other Institute of accountancy, whether in
India or elsewhere, as may be recognized in this behalf by the Council,
or any other qualification that he may possess, or to prohibit a firm,
all the partners of which are members of the Institute and in practice,
from being known by its firm name as Chartered Accountants.
Sub-section (1) of Section 21, inter
alia, lays down the manner in which an inquiry relating to misconduct of
members of the Institute shall be instituted.
Section 22 of the Act defines
professional misconduct to mean:
"22. Professional misconduct defined
For the purpose of this Act, the
expression "professional misconduct" shall be deemed to include any act
or omission specified in any of the Schedules, but nothing in this
section shall be construed to limit or abridge in any way the power
conferred or duty cast on the Council under sub-section (1) of Section
21 to inquire into the conduct of any member of the Institute under any
other circumstances."
Section 22A of the Act provides for
a statutory appeal to a High Court against the order the disciplinary
committee. Section 24A was introduced in the year 1949 containing a
penal provision for using the name of the Council, awarding degree of
chartered accountancy, etc. The said provision reads as under:
"(1) Save as otherwise provided in
this Act, no person shall
(i) use a name or the common seal
which is identical with the name or the common seal of the Institute or
so nearly resembles it as to deceive or as is likely to deceive the
public;
(ii) award any degree, diploma or
certificate or bestow any designation which indicates or purports to
indicate the position or attainment of any qualification or competence
similar to that of a member of the Institute; or
(iii) seek to regulate in any manner
whatsoever the profession of chartered accountants."
Sub-section (2) of Section 24A
provides for punishment for violation of the provisions of sub-section
(1) thereof.
9. Part I of the First Schedule
appended to the Act lists the professional misconducts in relation to
Chartered Accountants in practice; whereas Part II deals with
professional misconduct in relation to members of the Institute in
service. Part III deals with professional misconduct in relation to
members of the Institute generally. Part I of the Second Schedule
appended to the Act deals with professional misconduct in relation to
Chartered Accountants in practice requiring action by a High Court;
whereas Part II provides for professional misconduct in relation to
members of the Institute generally requiring action by a High Court,
whether in practice or not.
10. A resolution has been passed by
the Council under Section 2(2)(iv) of the Act exempting a member who is
holding a Certificate of Practice from the Institute of Cost & Works
Accountants of India or the Institute of Company Secretaries of India or
from the Bar Council or such other bodies, as may be specified in that
behalf, by the Council, from the purview of clause (3) thereof which
reads as under:
"(3) "Pursuant" to Section 2(2)(iv)
of the Chartered Accounts Act, 1949, the Council herein reiterates its
opinion that a member shall be deemed to be in practice if he, in his
professional capacity and neither in his personal capacity nor in his
capacity as an employee, acts as a liquidator, trustee, executor,
administrator, arbitrator, receiver, adviser or representative for
costing, financial or taxation matters or takes up an appointment made
by the Central Government or a State Government or a Court or law or any
other legal authority or acts as a Secretary unless his employment is on
a salary-cum-full-time basis;"
Clauses (2) and (3) of Appendix No.
(8) read as under:
"The Council decided that letters or description in respect of
membership of bodies other than Accountancy Institutes can be used
provided such use does not amount to the use of designation and in the
case of Accountancy Institutes prior recognition of the Council in this
behalf is necessary. It was also decided that in respect of Accountancy
Institutes which are recognized and in respect of Institutes other than
Accountancy Institutes the word London in brackets may be allowed to be
added provided that in each case the respective Institutes had permitted
such addition.
xxx xxx xxx
(3) The Council also decided that
the Institute of Cost and Works Accountants is not an Accountancy
Institute within the meaning of Section 7 and therefore there was no bar
to the use of these letters by the members of that Institute, if they
happen to be our members."
11. The High Court proceeded on the
basis that the notification is covered under Sections 7 and 24A of the
Act.
12. Before proceeding to consider
the respective contentions raised by the learned counsel for the
parties, we may notice that the constitutionality of the provisions of
the Act are not in question. What was in question before the High Court
was merely the validity of the said notification dated 03.08.1989.
13. Section 7 of the Act prohibits
any member using the designation of a Chartered Accountant from using
any other description, whether in addition thereto or in substitution
therefor. Proviso appended thereto, however, inter alia, permits the
member of the Institute to describe any other qualification that he may
possess. The proviso is in three parts. The first part lifts the embargo
provided under the main provision in respect of membership of such other
Institute of Accountancy, whether in India or elsewhere may be
recognized in that behalf by the Council. The Second parts enables the
member of the Institute to add any other qualification that he may
possess; and third part prohibits a firm, all the partners of which are
members of the Institute and in practice, from being known by its firm
name as Chartered Accountants. We are not herein concerned with the
third part.
14. Whereas submission of Mr.
Venugopal is that the second part of the proviso appended to Section 7
of the Act enables the member of the Institute to use any qualification
and in that view of the matter the qualification acquired by any member
from the appellant Institute being a matter of statutory right cannot be
taken away by reason of a delegated notification; the submission of Mr.
Ganesh is that the second part of the proviso must be given a contextual
meaning in the light of the first part thereof.
15. The role of a proviso is
well-known. A proviso may restrict the operation of the main provision,
but by reason thereof the rights and liabilities contained in the main
provision cannot altogether be taken away.
16. The main provision contains the
prohibition, but the proviso appended thereto only lifts such
prohibition to the extent mentioned therein, in respect of the other
Institutes of Accountancy, the degrees granted in respect thereof are
six in number, as would appear from Appendix No. (8) of the said Act.
The expression 'any other qualification that he may possess', therefore,
must be read as qualification other than conferred upon the member by
other Institutes of Accountancy. Such qualification of accountancy may
be conferred even by other Institutes. But as noticed hereinbefore, an
exemption had been granted by reason of a resolution of the Institute in
relation to the Institute of Cost and Works Accountants. Furthermore, a
degree conferred by any university also is subject to an exemption from
the rigour of the provisions of Section 7 of the Act.
17. There cannot, therefore, be any
doubt whatsoever that 'the other qualification' would mean a
qualification other than granted by an Institute of Accountancy, subject
of course to recognition thereof by the Institute.
18. The questions, however, which is
required to be posed and answered inter alia is whether by reason of a
notification, acquisition of a qualification itself can be prohibited.
The Institute is constituted under a parliamentary act. It is governed
by the provisions thereof as also the rules and regulations framed
thereunder. It being a statutory authority must confine its activities
within the four-corners of the statute. Section 7 of the Act debars a
person from using a qualification; it does not prohibit him from
acquiring a qualification. If, therefore, any member of the Institute
intends to acquire a qualification, the same being an inherent and human
right cannot be a subject-matter of prohibition until and unless there
exists any statutory interdict therefor.
19. The explanatory statement
appended to the notification does not state that the same had been
issued for the purposes sought to be achieved by Section 7 of the Act.
Even otherwise it is impermissible. What is a professional misconduct
has been defined. The statutory authority, therefore, cannot transgress
its authority that acquisition of a qualification by a member of the
Institute shall itself constitute a misconduct. We have no doubt in our
mind that the provision of Section 22 of the Act must be construed
widely. It must take within its sweep the misconduct of a member of the
Institute, which would disentitle him from pursuing a noble profession.
20. Our attention, in this behalf,
has been drawn to two decisions of this Court in The Council of the
Institute of Chartered Accountants of India & Another v. B. Mukherjea
[(1958) SCR 371 : AIR 1958 SC 72] and H.A.K. Rao v. Council of Institute
of Chartered Accountants of India, New Delhi [AIR 1967 SC 1257]. They
were, however, rendered in different fact situation.
21. In B. Mukherjea (supra), the
question which arose for consideration before this Court was as to
whether a Chartered Accountant while acting in the capacity of a
liquidator appointed by the High Court could refuse to furnish any
information to this Court and, thus, committed a misconduct.
22. In H.A.K. Rao (supra), the
question which arose was as to whether canvassing for the purpose of
contesting an election to the post of an Institute is permissible in
law.
23. We are herein concerned with the
term 'misconduct'. The word 'misconduct' which in generic sense would
mean, as held in Probodh Kumar Bhowmick v. University of Calcutta and
Ors. 1994 (2) C.L.J. 456 is as under:
"Misconduct, inter alia, envisages
breach of discipline, although it would not be possible to lay down
exhaustively as to what would constitute conduct and indiscipline,
which, however, wide enough to include wrongful omission or commission
whether done or omitted to be done intentionally or unintentionally. It
means, 'improper behaviour; intentional wrong doing on deliberate
violation of a rule of standard or behaviour':
Misconduct is a transgression of
some established and definite rule of action, where no discretion is
left except what necessity may demand; it is a violation of definite law
a forbidden act. It differs from carelessness. Misconduct even if it is
an offence under the Indian Penal Code is equally a misconduct."
[See also State of Punjab and Others
v. Ram Singh Ex. Constable - AIR 1992 SC 2188 : (1992) 4 SCC 54 and B.C.
Chaturvedi v. Union of India (1995) 6 SCC 749].
24. In 'M' an Advocate Re [AIR 1957
SC 149], this court dealt with professional misconduct in the following
terms :
"As has been laid down by this Court in the matter of 'G', a Senior
Advocate of the Supreme Court (A) (supra) the Court, in dealing with
cases of professional misconduct is "not concerned with ordinary legal
rights, but with the special and rigid rules of professional conduct
expected of and applied to a specially privileged class of persons who,
because of their privileged status, are subject to certain disabilities
which do not attach to their men and which do not attach even to them in
a non-professional character ...he ( a legal practitioner) is bound to
conduct himself in a manner befitting the high and honourable
professional to whose privileges he has so long been admitted; and if he
departs from the high standards which that professional has set for
itself and demands of him in professional matters, he is liable to
disciplinary action."
25. Whether misconduct has been
conducted or not would depend upon the statute in question and the
nature of misconduct said to have been committed. A misconduct must be
definite or precise but subject to its generic meaning in absence of any
statutory definition. When a person is otherwise entitled to acquire any
additional qualification, such qualification per se, in our opinion,
cannot be termed to be a misconduct in its generic sense.
26. There is another aspect of the
matter. A distinction must be drawn between a misconduct committed by an
employee and a professional misconduct. In the case of the latter, the
person in the profession precisely knows what is expected of him. It may
not be possible to lay down all such misconducts but, in our opinion, it
would be too much to contend that even an acquisition of an additional
qualification would come within the purview thereof. Such a broad
meaning in our opinion defy all norms.
27. In B.P. Sharma v. Union of India
and Others [(2003) 7 SCC 309], this Court held:
"14. The right which is guaranteed
to all citizens under Article 19(1)( g) of the Constitution of India is
to practise any profession or to carry on any calling, trade or
business. Clause (6) of Article 19, however, places a restriction that
nothing would prevent the State from making any law imposing reasonable
restrictions in exercise of the right in the interest of the general
public. Sub-clauses ( i ) and ( ii ) further provide that professional
and technical qualifications, as may be thought necessary for practising
the profession, can always be prescribed and exclusion of carrying on of
any calling, trade or business etc. is also envisaged which is also
carried on by a State or by a corporation owned and controlled by the
State. Subject to the abovenoted restrictions the valuable right as
provided under Article 19(1)( g ) is available to all the citizens who
are free to choose any trade, business, calling or profession etc. It
obviously, also includes the manner and terms in which they will carry
on their profession, but again subject to reasonable restrictions which
may be thought necessary by the State in the interest of the general
public. On the other hand, once a citizen voluntarily chooses to join
government service or any other service, he would obviously be free to
do so but he would be bound by the terms and conditions of the service
as may be provided under the law or by contract of service."
28. Submission of Mr. Ganesh that
Section 7 should be read with Section 24A of the Act, in our opinion,
cannot be accepted. An institute may commit an offence for awarding a
degree in respect of attainment of any qualification or competence
similar to that of a member of institute. But answer to such a question
must be rendered as and when the same is raised. It is not for us to
proceed on the presumption that the appellant has committed an offence.
It is also not possible to hold that the appellant has committed an
offence. It is also not possible to hold that in the event such an
offence has been committed, awarding of any degree in violation of
Clause (ii) of Sub-section (1) of Section 24A of the Act would be a
nullity. In any event, so long awarding of any degree is not held to be
illegal or a nullity, using the same as permitted in terms of Section 7
of the Act would not per se be illegal. If it is not per se held to be
illegal, the concept of misconduct arising as a result thereof, in our
opinion, would not arise. Reasonableness is the soul of law. A law is
said to be the perfection of reason. Even otherwise, Section 24A of the
Act is a penal provision. It must receive a strict construction. What
is, therefore, not contemplated is a misconduct under the Act, in our
opinion, cannot be termed to be a misconduct by reason of an
administrative order. A statutory authority, as is well-known, must not
only act within the four-corners of the statute, it also must act fairly
and reasonably.
29. Our attention has been drawn to
certain subsequent events. We do not think that we should go thereinto.
It would be for the appropriate authority to take a decision on the
basis of the said subsequent events. Submission of Mr. Ganesh that the
decision taken by Respondent No. 1 having been taken by an expert
decision and, thus, the same does not deserve any interference at the
hands of the court, in our opinion, is misconceived.
30. Interpretation of law is the job
of the superior court. An opinion of an expert is not beyond the pale of
judicial review. It would certainly not be so when the statutory
authority transgresses its jurisdiction. A decision taken in excess of
jurisdiction would render the same a nullity. [See Vasu Dev Singh & Ors.
v. Union of India & Ors. 2006 (11) SCALE 108]
31. In any event, similarity in the
designation on the premise that three of the papers taught by the
appellant institute are also taught by Respondent No. 1 cannot be a
ground to uphold the contention of Mr. Ganesh.
32. If a notification issued under a
statute is a law within the meaning of Article 13(3)(a) of the
Constitution, the same is liable to be struck down if it is contrary to
any of the fundamental rights guaranteed under the Constitution of
India. [See Indian Express Newspapers (Bombay) Private Ltd. and Others
v. Union of India and Others, (1985) 1 SCC 641]. In our opinion the
notification dated 03.08.1989 issued by respondent No.1 violates
Articles 14 and 19 (1) (g) of the Constitution and is hereby quashed.
33. For the reasons aforementioned, the impugned judgment cannot be
sustained which is set aside accordingly. The appeal is allowed. No
costs.
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