Case Details: Vishwanatha Sridhar Prabhu … Continue reading “Registered valuer can’t be suspended on the basis of criminal proceedings initiation without framed charges: HC”
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Case Details: Vishwanatha Sridhar Prabhu v. Union of India [2023] 147 taxmann.com 308 (HC-Bombay)
Judiciary and Counsel Details
G.S. Patel & S.G. Dige, JJ.
Facts of the Case
In the instant case, the petitioner, a Chartered Accountant was enrolled as a valuer with the IBBI in accordance with Registered Valuer Rules, 2017. The petitioner was arrested and placed in judicial custody for alleged involvement in the activities of PMC base on the First Information Report registered by Economic Offences Wing (EOW) directed against certain officials of PMC.
In response, IBBI by an email issued a show cause notice to the petitioner asking why the registration of the petitioner with IBBI should not be cancelled. Thereafter, the IBBI issued an impugned order suspending the petitioner’s registration as a valuer until he was exonerated of charges.
Consequently, being aggrieved, the writ petition was filed by the petitioner. It was noted that the impugned order proceeded on the presumption that a simple allegation or accusation is enough to impeach the ‘integrity, reputation and character’, of a person and that on a mere accusation, a person is rendered unfit and improper.
High Court Held
The High Court observed that since charges against the petitioner had not been framed yet, it was premature to assume that the petitioner was unfit to be a registered valuer.
The High Court, further noted that the petitioner may apply for or may obtain a discharge or a quashing order at some appropriate stage. There was in addition the possibility of the petitioner’s acquittal. Therefore, the High Court held that the impugned order was to be stayed.
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