Delhi HC issues notice to Centre on plea challenging constitutional validity of CA amendment Act

A petition seeking to issue directions declaring the aforesaid provisions are ultra vires to the Constitution as being contrary to the principles enunciated in articles 14, 19(1)(g) and 21 and to quash said provisions to the extent they run contrary to the principles enunciated in the Constitution.

New Delhi: The Delhi High Court on Thursday issued a notice to the Centre and others on a plea challenging the constitutional validity of various sections of the Chartered Accountants Amendment Act and the Company Secretaries Amendment Act.

Meanwhile, a plea challenging sections 21(9), 21A(6) and (7) and 21B (6) and (7) of the Chartered Accountants Act, 1949 as amended by The Chartered Accountants (CA) and Company Secretaries (Amendment) Act, 2022, was filled earlier.

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A petition seeking to issue directions declaring the aforesaid provisions are ultra vires to the Constitution as being contrary to the principles enunciated in articles 14, 19(1)(g) and 21 and to quash said provisions to the extent they run contrary to the principles enunciated in the Constitution.

The bench of Justice Satish Chander Sharma and Justice Subramonium Prasad on Thursday sought responses of the Union of India, the Institute of Chartered Accountants of India, the Institute of Cost Accountants of India and the Institute of Company Secretaries of India in the matter and fixed for January 20, 2023, for detail hearing.

The petitioner, Venugopal Swami B, through Advocates Biju Mattam, Hemant Singh, Chetan Garg and Ankita Bafna of Charter Law Chambers sought court direction declaring Sections 21(9), 21A(6) & (7) and 21B (6) and (7) of the Chartered Accountants Act, 1949 as amended by The Chartered Accountants and Company Secretaries (Amendment) Act, 2022 are ultra vires to the Constitution as being contrary to the law enunciated in article 14, 19(1)(g) and 21 thereof and thus, to quash said provisions.

The Centre has notified the law, passed in the last budget session of Parliament which also received Presidential assent on April 18, 2022. According to the Centre, the bill is with the intention of making the three institutions a lot more transparent in their disciplinary matters, and raise the quality of the disciplinary processes.

This would also facilitate India to be able to support institutions and firms which can be encouraged by the council to create something (completely of India origin) similar to the Big Four, which we periodically talk about,” said the Centre Govt.