Clause 7 – Part I – Second Schedule

Question 1

A Private Limited requested CA S, a practicing CA, to digitally sign the form related to resignation of Mr. R, one of the Director of A Private Limited, along with the copy of Resignation Letter to be uploaded on the website of ROC. The signature of Mr. R was simply copied and pasted by another Director of A Private Limited. CA S, without verifying the genuineness of the resignation letter, digitally signed the form and the said form was uploaded on the website of ROC.

Answer 1

As per Clause (7) of Part I of Second Schedule to the CA Act, 1949, a CA in practice is deemed to be guilty if he - does not exercise due diligence or is grossly negligent in the conduct of this professional duties.

In the given case, A Private Limited requested CA S, a practicing CA, to digitally sign the form related to resignation of Mr. R, one
of the Director of A Private Limited, along with the copy of Resignation Letter to be uploaded on the website of ROC. The signature of Mr. R was simply copied and pasted by another Director of A Private Limited.
CA S, without verifying the genuineness of the Resignation Letter, digitally signed the Form and the said form was uploaded on the website of ROC.

Due to forged resignation letter, the resignation of Mr. R from directorship of the A Private Limited had been occurred. It was noted that CA S had not taken any step to verify forged signature on resignation letter which anyone would have taken in normal circumstances.

Consequently, CA. S would be held liable for professional misconduct as per Clause (7) of Part I of Second Schedule to the CA Act, 1949.