The Cost Accountants Act, 1959
Administered Ministry: Ministry of Corporate Affairs
Section
Section 17 Committees of the Council.
(1) The Council shall constitute from amongst its members of the following Standing Committees, namely:--
(i) an Executive Committee;
1[(ii) a Finance Committee; and;]
(iii) an Examination Committee.
(2) The Council may also form a Training and Educational Facilities Committee and such other Committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Act.
2[(3) Each of the Standing Committees shall consist of the President and the Vice-President ex officio, and minimum of three and maximum of five members to be elected by the Council from amongst its members];
3*****
(6) Notwithstanding anything contained in this section, any Committee formed under sub-section (2), may, with the sanction of the Council, co-opt such other members of the Institute not exceeding 4[one-third of total membership of the Committee] as the Committee thinks fit, and any member so co-opted shall be entitled to exercise all the rights of a member of the Committee.
(7) The President shall be the Chairman of every Committee of which he is a member, arid in his absence, the Vice-President, if he is a member of the Committee, shall be the Chairman.
(8) The Standing Committees and other Committees formed under this section shall exercise such functions and be subject to such conditions in the exercise thereof as may be prescribed.
(i) an Executive Committee;
1[(ii) a Finance Committee; and;]
(iii) an Examination Committee.
(2) The Council may also form a Training and Educational Facilities Committee and such other Committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Act.
2[(3) Each of the Standing Committees shall consist of the President and the Vice-President ex officio, and minimum of three and maximum of five members to be elected by the Council from amongst its members];
3*****
(6) Notwithstanding anything contained in this section, any Committee formed under sub-section (2), may, with the sanction of the Council, co-opt such other members of the Institute not exceeding 4[one-third of total membership of the Committee] as the Committee thinks fit, and any member so co-opted shall be entitled to exercise all the rights of a member of the Committee.
(7) The President shall be the Chairman of every Committee of which he is a member, arid in his absence, the Vice-President, if he is a member of the Committee, shall be the Chairman.
(8) The Standing Committees and other Committees formed under this section shall exercise such functions and be subject to such conditions in the exercise thereof as may be prescribed.
1. Subs. by Act 7 of 2006, s. 15, for clause (ii) (w.e.f. 17-11-2006).
2. Subs. by s. 15, ibid., for sub-section (3) (w.e.f. 17-11-2006).
3. Sub-sections (4) and (5) omitted by s. 15, ibid. (w.e.f. 17-11-2006).
4. Subs. by s. 15, ibid., for two-thirds of total membership of the Committee (w.e.f. 17-11-2006).
2. Subs. by s. 15, ibid., for sub-section (3) (w.e.f. 17-11-2006).
3. Sub-sections (4) and (5) omitted by s. 15, ibid. (w.e.f. 17-11-2006).
4. Subs. by s. 15, ibid., for two-thirds of total membership of the Committee (w.e.f. 17-11-2006).
Section 18 Finances of the Council.
(1) There shall be established a fund under the management and control of the Council into which shall be paid all moneys received by the Council and out of which shall be met all expenses and liabilities properly incurred by the Council.
(2) The Council may invest any money for the time being standing to the credit of the fund in any Government security or in any other security approved by the Central Government.
1[(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue in the manner prescribed.
(4) The Council shall prepare in the manner prescribed and approve, prior to the start of the financial year, an annual financial statement (the budget) indicating all its anticipated revenues as well as all proposed expenditures for the forthcoming year.
2[ (5) The annual accounts of the Council shall be prepared in such manner as may be prescribed and subject to audit by a firm of chartered accountants to be appointed annually by the Council from the panel of auditors maintained by the Comptroller and Auditor-General of India:
Provided that a firm shall not be eligible for appointment as an auditor under this sub-section, if any of its partner is or has been a member of the Council during the last four years:
Provided further that in the event it is brought to the notice of the Council that the accounts of the Council do not represent a true and fair view of its finances, then, the Council may itself cause a special audit to be conducted:
Provided also that, if such information, that the accounts of the Council do not represent a true and fair view of its finances, is sent to the Council by the Central Government, then, the Council may, wherever appropriate cause a special audit or take such other action as it considers necessary and shall furnish an action taken report thereon to the Central Government.]
2[(5A) As soon as may be practicable at the end of each year, the Council shall circulate the audited accounts to its members at least fifteen days in advance and consider and approve these accounts in a special meeting convened for the purpose.
(5B) The Council shall cause to be published in the Gazette of India not later than the 30th day of September of the year next following, a copy of the audited accounts and the Report of the Council for that year duly approved by the Council and copies of the said accounts and Report shall be forwarded to the Central Government and to all the members of the Institute.]
(6) The Council may borrow from a scheduled bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), or from the Central Government--
(a) any money required for meeting its liabilities on capital account on the security of the fund or on the security of any other assets for the time being belonging to it; or
(b) for the purpose of meeting current liabilities pending the receipt of income by way of temporary loan or overdraft.
(2) The Council may invest any money for the time being standing to the credit of the fund in any Government security or in any other security approved by the Central Government.
1[(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue in the manner prescribed.
(4) The Council shall prepare in the manner prescribed and approve, prior to the start of the financial year, an annual financial statement (the budget) indicating all its anticipated revenues as well as all proposed expenditures for the forthcoming year.
2[ (5) The annual accounts of the Council shall be prepared in such manner as may be prescribed and subject to audit by a firm of chartered accountants to be appointed annually by the Council from the panel of auditors maintained by the Comptroller and Auditor-General of India:
Provided that a firm shall not be eligible for appointment as an auditor under this sub-section, if any of its partner is or has been a member of the Council during the last four years:
Provided further that in the event it is brought to the notice of the Council that the accounts of the Council do not represent a true and fair view of its finances, then, the Council may itself cause a special audit to be conducted:
Provided also that, if such information, that the accounts of the Council do not represent a true and fair view of its finances, is sent to the Council by the Central Government, then, the Council may, wherever appropriate cause a special audit or take such other action as it considers necessary and shall furnish an action taken report thereon to the Central Government.]
2[(5A) As soon as may be practicable at the end of each year, the Council shall circulate the audited accounts to its members at least fifteen days in advance and consider and approve these accounts in a special meeting convened for the purpose.
(5B) The Council shall cause to be published in the Gazette of India not later than the 30th day of September of the year next following, a copy of the audited accounts and the Report of the Council for that year duly approved by the Council and copies of the said accounts and Report shall be forwarded to the Central Government and to all the members of the Institute.]
(6) The Council may borrow from a scheduled bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), or from the Central Government--
(a) any money required for meeting its liabilities on capital account on the security of the fund or on the security of any other assets for the time being belonging to it; or
(b) for the purpose of meeting current liabilities pending the receipt of income by way of temporary loan or overdraft.
1. Subs. by s. 16, ibid., for sub-sections (3), (4) and (5) (w.e.f. 17-11-2006).
2. Subs. by Act 12 of 2022, s. 52, for sub-section (5) (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 52, for sub-section (5) (w.e.f. 10-5-2022).
Section 19 Register of members.
1[(1)The Council shall maintain a Register of members of the Institute in such manner as may be prescribed].
(2) The 2[Register of members] shall include the following particulars about every member of the Institute, namely:--
(a) his full name, date of birth, domicile, residential and professional addresses;
(b) the date on which his name is entered in the 2[Register of members];
(c) his qualifications;
3[(ca) whether any actionable information or complaint is pending or any penalty has been imposed against him under Chapter V, including details thereof, if any;]
(d) whether he holds a certificate of practice; and
(e) any other particulars which may be prescribed.
(3) The Council shall cause to be published in such manner as may be prescribed a list of members of the Institute as on the 1st day of April of each year, and shall, if requested to do so by any such member, send him a copy of such list 4[on payment of such amount as may be prescribed].
5[(4) Every member of the Institute shall, on his name being entered in the 2[Register of members], pay such annual membership fee as may be determined, by notification, by the Council 6***:
7*****.]
(2) The 2[Register of members] shall include the following particulars about every member of the Institute, namely:--
(a) his full name, date of birth, domicile, residential and professional addresses;
(b) the date on which his name is entered in the 2[Register of members];
(c) his qualifications;
3[(ca) whether any actionable information or complaint is pending or any penalty has been imposed against him under Chapter V, including details thereof, if any;]
(d) whether he holds a certificate of practice; and
(e) any other particulars which may be prescribed.
(3) The Council shall cause to be published in such manner as may be prescribed a list of members of the Institute as on the 1st day of April of each year, and shall, if requested to do so by any such member, send him a copy of such list 4[on payment of such amount as may be prescribed].
5[(4) Every member of the Institute shall, on his name being entered in the 2[Register of members], pay such annual membership fee as may be determined, by notification, by the Council 6***:
7*****.]
1. Subs. by s. 53, ibid., for sub-section (1) (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 53, for “Register” (w.e.f. 10-5-2022).
3. Ins. by s. 53, ibid. (w.e.f. 10-5-2022).
4. Ins. by Act 7 of 2006, s. 17 (w.e.f. 17-11-20006).
5. Subs. by s. 17, ibid., for sub-section (4) (w.e.f. 17-11-2006).
6. The words “, which shall not exceed rupees five thousand” omitted by Act 12 of 2022, s. 53 (w.e.f. 10-5-2022).
7. The proviso omitted by s. 53, ibid. (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 53, for “Register” (w.e.f. 10-5-2022).
3. Ins. by s. 53, ibid. (w.e.f. 10-5-2022).
4. Ins. by Act 7 of 2006, s. 17 (w.e.f. 17-11-20006).
5. Subs. by s. 17, ibid., for sub-section (4) (w.e.f. 17-11-2006).
6. The words “, which shall not exceed rupees five thousand” omitted by Act 12 of 2022, s. 53 (w.e.f. 10-5-2022).
7. The proviso omitted by s. 53, ibid. (w.e.f. 10-5-2022).
Section 20 Removal from the Register of members.
(1) The Council may remove from the 1[Register of members] the name of any member of the Institute,--
(a) who is dead; or
(b) from whom a request has been received to that effect; or
(c) who has not paid any prescribed fee required to be paid by him; or
(d) who is found to have been subject at the time when his name was entered in the 1[Register of members], or who at any time thereafter has become subject, to any of the disabilities mentioned in section 8, or who for any other reason has ceased to be entitled to have his name borne on the Register.
(2) The Council shall remove from the 1[Register of members] the name of any member in respect of whom an order has been passed under this Act removing him from membership of the Institute.
2[(3) If the name of any member has been removed from the Register under clause (c) of sub-section (1), on receipt of an application, his name may be entered again in the Register on payment of the arrears of annual fee and entrance fee along with such additional fee, as may be determined, by notification, by the Council 3****:
4*****.]
(a) who is dead; or
(b) from whom a request has been received to that effect; or
(c) who has not paid any prescribed fee required to be paid by him; or
(d) who is found to have been subject at the time when his name was entered in the 1[Register of members], or who at any time thereafter has become subject, to any of the disabilities mentioned in section 8, or who for any other reason has ceased to be entitled to have his name borne on the Register.
(2) The Council shall remove from the 1[Register of members] the name of any member in respect of whom an order has been passed under this Act removing him from membership of the Institute.
2[(3) If the name of any member has been removed from the Register under clause (c) of sub-section (1), on receipt of an application, his name may be entered again in the Register on payment of the arrears of annual fee and entrance fee along with such additional fee, as may be determined, by notification, by the Council 3****:
4*****.]
1. Subs. by s. 54, ibid., for “Register” (w.e.f. 10-5-2022).
2. Ins. by Act 7 of 2006, s. 18 (w.e.f. 17-11-2006).
3.The words “which shall not exceed rupees two thousand” omitted by Act 12 of 2022, s. 54 (w.e.f. 10-5-2022).
4.The proviso omitted by s. 54, ibid. (w.e.f. 10-5-2022).
2. Ins. by Act 7 of 2006, s. 18 (w.e.f. 17-11-2006).
3.The words “which shall not exceed rupees two thousand” omitted by Act 12 of 2022, s. 54 (w.e.f. 10-5-2022).
4.The proviso omitted by s. 54, ibid. (w.e.f. 10-5-2022).
Section 21 Disciplinary Directorate. 2 docs
1[21. Disciplinary Directorate.--(1) The Council shall, by notification, establish a Disciplinary Directorate headed by an officer of the Institute designated as Director (Discipline) and such other employees for making investigations in respect of any information or complaint received by it.
(2) On receipt of any information or complaint along with the prescribed fee, the Director (Discipline) shall arrive at a prima facie opinion on the occurrence of the alleged misconduct.
(3) Where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the First Schedule, he shall place the matter before the Board of Discipline and where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the Second Schedule or in both the Schedules, he shall place the matter before the Disciplinary Committee.
(4) In order to make investigations under the provisions of this Act, the Disciplinary Directorate shall follow such procedure as may be specified.
(5) Where a complainant withdraws the complaint, the Director (Discipline) shall place such withdrawal before the Board of Discipline or as the case may be, the Disciplinary Committee, and the said Board of Committee may, if it is of the view that the circumstances so warrant, permit the withdrawal at any stage.]
(2) On receipt of any information or complaint along with the prescribed fee, the Director (Discipline) shall arrive at a prima facie opinion on the occurrence of the alleged misconduct.
(3) Where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the First Schedule, he shall place the matter before the Board of Discipline and where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the Second Schedule or in both the Schedules, he shall place the matter before the Disciplinary Committee.
(4) In order to make investigations under the provisions of this Act, the Disciplinary Directorate shall follow such procedure as may be specified.
(5) Where a complainant withdraws the complaint, the Director (Discipline) shall place such withdrawal before the Board of Discipline or as the case may be, the Disciplinary Committee, and the said Board of Committee may, if it is of the view that the circumstances so warrant, permit the withdrawal at any stage.]
1. Subs. by s. 19, ibid., for section 21 (w.e.f. 17-11-2006).
Section 21A Board of Discipline.
1[21A. Board of Discipline.--(1) The Council shall constitute a Board of Discipline consisting of --
(a) a person with experience in law and having knowledge of disciplinary matters and the profession, to be its presiding officer;
(b) two members one of whom shall be a member of the Council elected by the Council and the other member shall be the person designated under clause (c) of sub-section (1) of section 16;
(c) the Director (Discipline) shall function as the Secretary of the Board.
(2) The Board of Discipline shall follow summary disposal procedure in dealing with all the cases before it.
(3) Where the Board of Discipline is of the opinion that a member is guilty of a professional or other misconduct mentioned in the First Schedule, it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:--
(a) reprimand the member;
(b) remove the name of the member from the Register up to a period of three months;
(c) impose such fine as it may think fit which may extend to rupees one lakh.
(4) The Director (Discipline) shall submit before the Board of Discipline all information and complaints where he is of the opinion that there is no prima facie case and the Board of Discipline may, if it agrees with the opinion of the Director (Discipline), close the matter or in case of disagreement, may advise the Director (Discipline) to further investigate the matter.]
(a) a person with experience in law and having knowledge of disciplinary matters and the profession, to be its presiding officer;
(b) two members one of whom shall be a member of the Council elected by the Council and the other member shall be the person designated under clause (c) of sub-section (1) of section 16;
(c) the Director (Discipline) shall function as the Secretary of the Board.
(2) The Board of Discipline shall follow summary disposal procedure in dealing with all the cases before it.
(3) Where the Board of Discipline is of the opinion that a member is guilty of a professional or other misconduct mentioned in the First Schedule, it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:--
(a) reprimand the member;
(b) remove the name of the member from the Register up to a period of three months;
(c) impose such fine as it may think fit which may extend to rupees one lakh.
(4) The Director (Discipline) shall submit before the Board of Discipline all information and complaints where he is of the opinion that there is no prima facie case and the Board of Discipline may, if it agrees with the opinion of the Director (Discipline), close the matter or in case of disagreement, may advise the Director (Discipline) to further investigate the matter.]
1. Ins. by s. 20, ibid. (w.e.f. 17-11-2006).
Section 21B Disciplinary Committee. 2 docs
1[21B. Disciplinary Committee.--(1) The Council shall constitute a Disciplinary Committee consisting of the President or the Vice-President of the Council as the Presiding Officer and two members to be elected from amongst the members of the Council and two members to be nominated by the Central Government from amongst the persons of eminence having experience in the field of law, economics, business, finance or accountancy:
Provided that the Council may constitute more Disciplinary Committees as and when it considers necessary.
(2) The Disciplinary Committee while considering the cases placed before it, shall follow such procedure as may be specified.
(3) Where the Disciplinary Committee is of the opinion that a member is guilty of a professional or other misconduct mentioned in the Second Schedule or both the First Schedule and the Second Schedule,it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:--
(a) reprimand the member;
(b) remove the name of the member from the Register permanently or for such period, as it thinks fit;
(c) impose such fine as it may think fit, which may extend to rupees five lakhs.
(4) The allowances payable to the members nominated by the Central Government shall be such as may be specified.]
Provided that the Council may constitute more Disciplinary Committees as and when it considers necessary.
(2) The Disciplinary Committee while considering the cases placed before it, shall follow such procedure as may be specified.
(3) Where the Disciplinary Committee is of the opinion that a member is guilty of a professional or other misconduct mentioned in the Second Schedule or both the First Schedule and the Second Schedule,it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:--
(a) reprimand the member;
(b) remove the name of the member from the Register permanently or for such period, as it thinks fit;
(c) impose such fine as it may think fit, which may extend to rupees five lakhs.
(4) The allowances payable to the members nominated by the Central Government shall be such as may be specified.]
1. Ins. by s. 20, ibid. (w.e.f. 17-11-2006).
Section 21C Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court.
1[21C. Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court.--For the purposes of an inquiry under the provisions of this Act, the Authority, the Disciplinary Committee, Board of Discipline and the Director (Discipline) shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:--
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) the discovery and production of any document; and
(c) receiving evidence on affidavit.
Explanation.--For the purposes of sections 21, 21A, 21B, 21C and 22, "member of the Institute" includes a person who was a member of the Institute on the date of the alleged misconduct although he has ceased to be a member of the Institute at the time of the inquiry.]
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) the discovery and production of any document; and
(c) receiving evidence on affidavit.
Explanation.--For the purposes of sections 21, 21A, 21B, 21C and 22, "member of the Institute" includes a person who was a member of the Institute on the date of the alleged misconduct although he has ceased to be a member of the Institute at the time of the inquiry.]
1. Ins. by s. 20, ibid. (w.e.f. 17-11-2006).
Section 21D Transitional provisions.
1[21D.Transitional provisions.--All complaints pending before the Council or any inquiry initiated by the Disciplinary Committee or any reference or appeal made to a High Court prior to the commencement of the Cost and Works Accountants (Amendment) Act, 2006 shall continue to be governed by the provisions of this Act, as if this Act had not been amended by the Cost and Works Accountants (Amendment) Act, 2006.]
1. Ins. by s. 20, ibid. (w.e.f. 17-11-2006).
Section 22 Professional or other misconduct defined.
1[22. Professional or other misconduct defined.-- For the purposes of this Act, the expression "professional or other misconduct" shall be deemed to include any act or omission provided 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 Director (Discipline) under sub-section (1) of section 21 to inquire into the conduct of any member of the Institute under any other circumstances.]
1. Subs. by Act 7 of 2006, s. 21, for section 22 (w.e.f. 17-11-2006).
Section 22A Constitution of Appellate Authority. 3 docs
1[22A. Constitution of Appellate Authority.--The Appellate Authority constituted under sub-section (1) of section 22A of the Chartered Accountants Act, 1949 (38 of 1949), shall be deemed to be the Appellate Authority for the purposes of this Act subject to the modification that for clause (b) of said sub-section (1), the following clause had been substituted, namely:--
"(b) the Central Government shall, by notification appoint two part-time members from amongst the persons who have been members of the Council of the 2[Institute of Cost Accountants of India] for at least one full term and who is not a sitting member of the Council;".]
"(b) the Central Government shall, by notification appoint two part-time members from amongst the persons who have been members of the Council of the 2[Institute of Cost Accountants of India] for at least one full term and who is not a sitting member of the Council;".]
1. Ins. by Act 7 of 2006, s. 22 (w.e.f. 17-11-2006).
2. Subs. by Act 10 of 2012, s. 5, for "Institute of Cost and Works Accountants of India" (w.e.f. 17-11-2006).
2. Subs. by Act 10 of 2012, s. 5, for "Institute of Cost and Works Accountants of India" (w.e.f. 17-11-2006).
Section 22B Term of office of members of Authority.
1[22B. Term of office of members of Authority.--A person appointed as a member shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.]
1. Ins. by Act 7 of 2006, s. 22 (w.e.f. 17-11-2006).
Section 22C Procedure, etc., of Authority. 3 docs
1[22C. Procedure, etc., of Authority.--The provisions of section 22C, section 22D and section 22F of the Chartered Accountants Act, 1949 (38 of 1949) shall apply to the Authority in relation to allowances and terms and conditions of service of its Chairperson and members and in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Chartered Accountants Act, 1949.]
1. Ins. by Act 7 of 2006, s. 22 (w.e.f. 17-11-2006).
Section 22D Officers and other staff of Authority.
1[22D. Officers and other staff of Authority.--(1) The Council shall make available to the Authority such officers and other staff members as may be necessary for the efficient performance of the functions of the Authority.
(2) The salaries and allowances and conditions of service of the officers and other staff members of the Authority shall be such as may be prescribed.]
(2) The salaries and allowances and conditions of service of the officers and other staff members of the Authority shall be such as may be prescribed.]
1. Ins. by Act 7 of 2006, s. 22 (w.e.f. 17-11-2006).
Section 22E Appeal to Authority.
1[22E. Appeal to Authority.--(1) Any member of the Institute aggrieved by any order of the Board of Discipline or the Disciplinary Committee imposing on him any of the penalties referred to in sub-section (3) of section 21A and sub-section (3) of section 21B, may within ninety days from the date on which the order is communicated to him, prefer an appeal to the Authority:
Provided that the Director (Discipline) may also appeal against the decision of the Board of Discipline or the Disciplinary Committee to the Authority if so authorised by the Council, within ninety days:
Provided further that the Authority may entertain any such appeal after the expiry of the said period of ninety days, if it is satisfied that there was sufficient cause for not filing the appeal in time.
(2) The Authority may, after calling for the records of any case, revise any order made by the Board of Discipline or the Disciplinary Committee under sub-section (3) of section 21A and sub-section (3) of section 21B and may--
(a) confirm, modify or set aside the order;
(b) impose any penalty or set aside, reduce, or enhance the penalty imposed by the order;
(c) remit the case to the Board of Discipline or Disciplinary Committee for such further enquiry as the Authority considers proper in the circumstances of the case; or
(d) pass such other order as the Authority thinks fit:
Provided that the Authority shall give an opportunity of being heard to the parties concerned before passing any order.]
Provided that the Director (Discipline) may also appeal against the decision of the Board of Discipline or the Disciplinary Committee to the Authority if so authorised by the Council, within ninety days:
Provided further that the Authority may entertain any such appeal after the expiry of the said period of ninety days, if it is satisfied that there was sufficient cause for not filing the appeal in time.
(2) The Authority may, after calling for the records of any case, revise any order made by the Board of Discipline or the Disciplinary Committee under sub-section (3) of section 21A and sub-section (3) of section 21B and may--
(a) confirm, modify or set aside the order;
(b) impose any penalty or set aside, reduce, or enhance the penalty imposed by the order;
(c) remit the case to the Board of Discipline or Disciplinary Committee for such further enquiry as the Authority considers proper in the circumstances of the case; or
(d) pass such other order as the Authority thinks fit:
Provided that the Authority shall give an opportunity of being heard to the parties concerned before passing any order.]
1. Ins. by Act 7 of 2006, s. 22 (w.e.f. 17-11-2006).
Section 23 Constitution and functions of Regional Councils.
(1) For the purpose of advising and assisting it on matters concerning its functions, the Council may constitute such Regional Councils as and when it deems fit for one or more of the regional constituencies that may be specified by the Central Government under clause (a) of sub-section (2) of section 9.
(2) The Regional Councils shall be constituted in such manner and exercise such functions as may be prescribed.
(2) The Regional Councils shall be constituted in such manner and exercise such functions as may be prescribed.
Section 24 Penalty for falsely claiming to be a member, etc.
Any person who,--
(i) not being a member of the Institute--
(a) represents that he is a member of the Institute; or
(b) uses the designation cost accountant; or
(ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practices as a cost accountant;
shall be punishable on first conviction with fine which may extend to 1[one lakh rupees], and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to 2[five lakh rupees], or with both.
(i) not being a member of the Institute--
(a) represents that he is a member of the Institute; or
(b) uses the designation cost accountant; or
(ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practices as a cost accountant;
shall be punishable on first conviction with fine which may extend to 1[one lakh rupees], and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to 2[five lakh rupees], or with both.
1 Subs. by Act 12 of 2022, s. 63, for “one thousand rupees” (w.e.f. 10-5-2022).
2. Subs. by s. 63, ibid., for “five thousand rupees” (w.e.f. 10-5-2022).
2. Subs. by s. 63, ibid., for “five thousand rupees” (w.e.f. 10-5-2022).
Section 25 Penalty for using name of the Council, awarding degrees of cost accountancy, etc.
(1) Save as otherwise provided in this Act, no person shall,--
(i) use a name or a 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 in cost accountancy similar to that of a member of the Institute; or
(iii) seek to regulate in any manner whatsoever the profession of 1[cost accountants].
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, 2[be punishable with imprisonment which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees or with both on first conviction], and on any subsequent conviction with imprisonment which may extend to 3[one year, or with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees], or with both.
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(4) If the Central Government is satisfied that any diploma or certificate or any designation granted or conferred by any person other than the Institute, which purports to be a qualification in cost accountancy but which, in the opinion of the Central Government, falls short of the standard of qualifications prescribed for cost accountants and does not in fact indicate or purport to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute, it may, by notification in the Official Gazette and subject to such conditions as it may think fit to impose, declare that this section shall not apply to such diploma or certificate or designation
(i) use a name or a 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 in cost accountancy similar to that of a member of the Institute; or
(iii) seek to regulate in any manner whatsoever the profession of 1[cost accountants].
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, 2[be punishable with imprisonment which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees or with both on first conviction], and on any subsequent conviction with imprisonment which may extend to 3[one year, or with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees], or with both.
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(4) If the Central Government is satisfied that any diploma or certificate or any designation granted or conferred by any person other than the Institute, which purports to be a qualification in cost accountancy but which, in the opinion of the Central Government, falls short of the standard of qualifications prescribed for cost accountants and does not in fact indicate or purport to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute, it may, by notification in the Official Gazette and subject to such conditions as it may think fit to impose, declare that this section shall not apply to such diploma or certificate or designation
1. Subs. by Act 10 of 2012, s. 6, for cost and works accountants (w.e.f. 1-2-2012).
2. Subs. by Act 12 of 2022, s. 64, for “be punishable on first conviction with fine which may extend to one thousand rupees” (w.e.f. 10-5-2022).
3. Subs. by s. 64, ibid., for “six months, or with fine which may extend to five thousand rupees” (w.e.f. 10-5-2022).
4. Sub-section (3) omitted by Act 7 of 2006, s. 23 (w.e.f. 8-8-2006).
2. Subs. by Act 12 of 2022, s. 64, for “be punishable on first conviction with fine which may extend to one thousand rupees” (w.e.f. 10-5-2022).
3. Subs. by s. 64, ibid., for “six months, or with fine which may extend to five thousand rupees” (w.e.f. 10-5-2022).
4. Sub-section (3) omitted by Act 7 of 2006, s. 23 (w.e.f. 8-8-2006).
Section 26 Companies not to engage in cost accountancy.
(1) No company, whether incorporated in India or elsewhere, shall practice as cost accountants.
1[Explanation.--For the removal of doubts, it is hereby declared that the "company" shall include any limited liability partnership which has company as its partner for the purposes of this section.]
2[(2) If any company contravenes the provisions of sub-section (1), then every director, manager, Secretary and any other officer who is knowingly a party to such contravention shall be punished on first conviction with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees, and on any subsequent conviction, with fine which shall not be less than four lakh rupees but which may extend to twenty lakh rupees.]
1[Explanation.--For the removal of doubts, it is hereby declared that the "company" shall include any limited liability partnership which has company as its partner for the purposes of this section.]
2[(2) If any company contravenes the provisions of sub-section (1), then every director, manager, Secretary and any other officer who is knowingly a party to such contravention shall be punished on first conviction with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees, and on any subsequent conviction, with fine which shall not be less than four lakh rupees but which may extend to twenty lakh rupees.]
1. Ins. by Act 10 of 2012, s. 7 (w.e.f. 1-2-2012).
2. Subs. by Act 12 of 2022, s. 65, for sub-section (2) (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 65, for sub-section (2) (w.e.f. 10-5-2022).
Section 27 Unqualified persons not to sign documents.
(1) No person other than a member of the Institute shall sign any document on behalf of cost accountant in practice or a firm of such cost accountants in his or its professional capacity.
1[(2) Any person who contravenes the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with a fine not less than 2[one lakh rupees] but which may extend to 3[five lakh rupees], and in the event of a second or subsequent conviction with imprisonment for a term which may extend to one year or with a fine not less than 4[two lakh rupees] but which may extend to 5[ten lakh rupees[ or with both.]
1[(2) Any person who contravenes the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with a fine not less than 2[one lakh rupees] but which may extend to 3[five lakh rupees], and in the event of a second or subsequent conviction with imprisonment for a term which may extend to one year or with a fine not less than 4[two lakh rupees] but which may extend to 5[ten lakh rupees[ or with both.]
1. Subs. by Act 7 of 2006, s. 24, for sub-section (2) (w.e.f. 17-11-2006)
2. Subs. by Act 12 of 2022, s. 66, for “five thousand rupees” (w.e.f. 10-5-2022).
3. Subs. by s. 66, ibid., for “ one lakh rupees” (w.e.f. 10-5-2022).
4. Subs. by s. 66, ibid., for “ten thousand rupees” (w.e.f. 10-5-2022).
5. Subs. by s. 66, ibid., for “ two lakh rupees” (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 66, for “five thousand rupees” (w.e.f. 10-5-2022).
3. Subs. by s. 66, ibid., for “ one lakh rupees” (w.e.f. 10-5-2022).
4. Subs. by s. 66, ibid., for “ten thousand rupees” (w.e.f. 10-5-2022).
5. Subs. by s. 66, ibid., for “ two lakh rupees” (w.e.f. 10-5-2022).