Rajasthan HC in the case of Risha Lodha Versus The ICAI

Case Covered:

Risha Lodha

Versus

The Institute of Chartered Accountants of India

Facts of the Case:

The petitioner, a young girl-student of 21 years of age, has knocked at the doors of this Court being aggrieved by extreme oppressive action of a professional body-The Institute of Chartered Accountants of India (for short, ‘Institute’), which enjoys a long earned reputation of setting high standards of professional excellence, discipline and meeting the timeline especially when it comes to holding of examinations and declaring results.

Although the chronological facts are handful their culmination has been dreadful and the concussion thereof could have been doomful.

Aspiring to become a Chartered Accountant, the petitioner cleared her CA Foundation Examination in the year 2018 in the very first attempt. Consequently, she became eligible to appear in CA Intermediate Examination scheduled for May 2020.

On account of the unprecedented situation of the spread of Covid-19 and imposition of lock-down, the exams due in May 2020 were cancelled.

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Observations of the Hon’ble Court:

Having heard learned counsel for the parties and after wading through the record, this Court finds that not only the initiation of proceedings against the petitioner but also the manner in which, the proceedings have been conducted so also its culmination in cancellation of petitioner’s result suffers from all the vices which have been voiced by Mr. Vikas Balia. They are without jurisdiction and against the principles of natural justice on one hand and capricious and arbitrary on the other.

That apart, in the opinion of this Court, there is hardly anything in the e-mail, for which it can be alleged/ considered as or even construed to be derogatory. Maybe, the petitioner could have been more calibrated in her emotional utterness and could have avoided some of the sentences, but then also, this Court is unable to countenance respondents’ stand that the contents of her mail were derogatory. The very initiation of the proceedings against the petitioner alleging that the e-mail contains derogatory remarks were uncalled for and unwarranted. On the contrary, this Court feels that action of the respondents was rather overbearing or high-handed.

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The Decision of the Court:

Though the facts of the present case warrant the imposition of exemplary costs, this Court feels that quantification of the cost would be guesswork and improper assessment of the agony and trauma which the petitioner has undergone. Hence, this Court abstains from imposing any cost in the form of damages or otherwise.

While hoping that in the future the Institute will not take any such action and take any criticism in a positive stride, this Court hastens to add that a professional body like the respondent Institute should introspect and ensure that its overenthusiasm of attaining professional excellence and endeavors of setting high standards of discipline should not silence rather stifle the speech of a student or its member in the manner that has been done in the present case.

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The cost of Rs.20,000/- as indicated above, shall be paid by the respondents by way of demand draft to the petitioner within a period of 30 days from today.

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The stay application also stands disposed of accordingly.

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