Page 399 - CA Final PARAM Digital Book.

▪ Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ A member shall be held guilty if a Chartered Accountant in practice solicits clients or professional
work either directly or indirectly by circular, advertisement, personal communication or interview
or by any other means.

Further, as per Central Council Guidelines for Advertisement for the members in practice, write up
of the members should not claim superiority over any other Member(s)/Firm(s) and should also not
include the names of the clients.

Part III – Case Discussion
➢ In the present case, Mr. M, a practicing Chartered Accountant sent the letter to another firm of
Chartered Accountants, claiming himself to be a pioneer in liasoning with Central Government
Ministries and its allied Departments for getting various Government clearances for which he had
claimed to have expertise and had also given a list of his existing clients and details of his staff etc.

Part IV – Conclusion
➢ The act of CA M seems to be indirect methods to adventure their professional practice with a view
to gain publicity and thereby solicit clients or professional work.

Hence, Mr. M was guilty of professional misconduct as per Clause (6) of Part I of First Schedule of
the Chartered Accountants Act, 1949
Author’s Note
Normally sending letters and asking for work from other CA firms is not a misconduct but we cannot
misuse this exception, like the firm did here.
Here CA M more than asking for work was advertising himself to another firm by mentioning things that
can be influential.

Sending letters is principally covered in clause 6, clarifications and permissions are also given in clause 6.
So even if professional attainments are highlighted (generally covered by Clause 7 )court has applied clause
6.
I understand that it includes highlighting professional matters. But in PE more than interpretation we have
to understand pattern.

First Schedule, Part I,Cl,7 Visiting Card Old Course – (M06E, M09E, M12R, M12M, N15E, PM17,
QNO
694.000 (Name of Multiple Firms) N17M)
TITANIUM CNO – PE.1180 New Course – (SM23)
CA Naman, a Chartered Accountant in practice is a partner in 4 firms. On the personal Letter Heads, he

mentioned the names and addresses of all the 4 firms in small fonts
Answer Part I -- Relevant Laws
▪ Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ A Chartered Accountant in practice is deemed to be guilty of professional misconduct if he
• advertises his professional attainments or services or
• uses any designation or expressions other than “Chartered Accountant” on professional
documents, visiting cards, letter heads or sign boards unless it be a degree of a university
established by law in India or recognized by the Central Government or a title indicating
membership of the ICAI or of any other institution that has been recognized by the Central
Government or may be recognized by the council.

Here there is no prohibition for printing names on the personal letter heads in which a
member holding certificate of practice is a partner.

Part III – Case Discussion
➢ In the given case, CA Naman mentioned the names and addresses of all the 4 firms in which he is a
partner on the personal letter heads

Part IV – Conclusion
➢ Therefore, CA Naman will not be held guilty of any professional misconduct in pursuant to Clause
(7) of Part I of First Schedule of the Chartered Accountants Act, 1949.

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