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REGISTERED No. D-28

The Gazette of India

EXTRAORDINARY

PUBLISHES BY AUTHORITY

NEW DELHI, TUESDAY, MAY 3, 1949

PART IV

Acts of the Dominion Legislature assented to by the Governor General

GOVERNMENT OF INDIA

MINISTRY OF LAW

New Delhi, the 3rd May, 1949

The following Acts of the Dominion Legislature received the assent of the- Governor General on the 1st May, 1949 and are hereby published for general information: —

ACT NO. XXXVIII OF 1949. An Act to make provision for the regulation of the profession of accountants. WHEREAS it is expedient to make provision for the regulation of the pro- fession of accountants and for that purpose to establish an Institute of Chartered Accountants;

It is hereby enacted as follows: —

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement,—(i) This Act may be called the- Chartered Accountants Act, 1949.

(3) It extends to all the Provinces of India, and also to every Acceding State to the extent to which the Dominion Legislature has power to make laws for that State with respect to the matters dealt with in this Act.

(3) It shall come into force on such date as the Central Government may., by notification in the official Gazette, appoint in this behalf.

2. Interpretation.—(1) In this Act, unless there is anything repugnant in the- subject or context,—

(o) "associate" means an associate member of the Institute;

(6) "chartered accountant" means a person who is a member of the Institute and who is in practice;

(c) "Council" means the Council of the Institute; (d) "holder of a restricted certificate" means a person holding a permanent or temporary restricted certificate granted by a Provincial Government under the restricted Certificates Rules, 1982;

(e) "Institute" means the Institute of Chartered Accountants of India constituted under this Act;

(143)

1U THE 0AKETTE OF INDIA EXTRAORDINARY, MAY 8, 1949

'(/) ^'prescribed" means prescribed by regulations made under this Act; (9) "Register" means the Eegistei¹ of Members maintained under this Act;

(ft) "registered accountant" means any person who has been enrolled an the Register of Accountai.es maintained by the Central Government under the Auditors' Certificates Rules, 1982;

(i) "year" means the period commencing on the 1st day of April of any year and ending on the 81st day of March of the succeeding year.

(#) A member of tbe Institute shall be deemed "to be in practice", when individually or jn partnership with chartered accountants, he, in consideration of remuneration received or to be received,—

(7) engages himself in the practice of accountancy; or (it) offers- to perform or performs services involving the auditing or verification of financial transactions, books, accounts, or reoords or the preparation, verification or certification"of financial accounting and related statements or holds himself out to the public as an accountant; or

(Hi) renders professional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation or certification of financial facts or data; or

(iv) renders such other services as, in the opinion of the Council, are or may bo rendered by a. chartered accountant; and the words "to be in practice" with their grammatical variations and cognate expressions shall be construed accordingly.

Explanation.—An associate or a follow of the Institute who is a salaried -employee of a chartered accountant or a firm of chartered accountants shall, notwithstanding such employment, be deemed to bo iu practice for the limited purpose of the training of articled clerks.

CHAPTER II

THE INSTITUTE OF CHARTERED ACCOUNTANTS OV INDIA.

3. Incorporation of the Institute.—(1) All persons whose names are entered in the Register at the commencement of this Act and all persona who may hereafter have their names entered in the Register under the provisions of this Act, so long as they continue to have their names borne on the said Register, are hereby constituted a body corporate by the name of the Institute •of. Chartered Accountants of India, and all such nersons shall, be known as members of the Institute.

(8) The Institute shall have perpetual succession aid a common seal and shall have power to acquire, hold and disposo of property, both movable and immovable, and shall by its name sue or be sued.

4. Entry of names in the Register.—(l) Any of the following persons shall be entitled to have his name entered in the Register, namely,—

(i) any person who is a' registered accountant or a holder of a restricted certificate at the commencement of this Act; • ••

(ii) any person who has passed such examination and com- pleted such training as may be prescribed for members of the Institute;

(Hi) any person who has passed the examination for the Government Diploma in Accountancy or an examination recognised as equivalent thereto by the rules for the award of the Government Diploma in Accountancy

THE GAZETTE OF INDIA EXTBAOEDJNABY, MAY 3, J949 145

before the commencement of tin's Act, and who, although not duly qualified to be registered as an accountant under tho Auditors' Certificates Bules, 1982, fulfils such conditions as the Central Government may specify in this behalf;

(iv) any person who, at the commencement of this Act, is engaged in the practice of accountancy in any Acceding State and who, although not possessing the requisite qualifications to be registered as an accountant under the Auditors' Certificates Bules, 1932, fulfils such conditions as the •Central Government may specify in this behalf;

(v) any person who has passed such other examination and completed •such other training without India as is recognised by the Council aa ••equivalent to the examination and training prescribed for members of the ^Institute:

Provided that in the case of any person who is not permanently • residing in India, the Council may prescribe such further conditions aa it may think fit;

(vi) any person domiciled in India, who at the commencement of this Aot is studying for any foreign examination find is at the same time under- going training, whether within or without India, or, who, having passed suoh foreign examination, is at the commencement of this Act undergoing '"training, whether within or without India:

Provided that any such examination or training was recognised before the commencement of this Act for the purpose of conferring the right to be registered• as an accountant under the Auditors' Certificates Bules, 1932, and provided further that such person passoa the examination or completes the training within five years after the commencement of this Act.

(8) Every person belonging to the class mentioned in olause (i) of sub-section <{1) shall have his name entered in the Begister without the payment of any •-entrance fee.

(3) Every person belonging to tiny of the classes mentioned in clause.* ("i), (Hi), (iv), (v) find (vi) of sub-section (1) shall have his name entered in the Register on application being made and granted in the prescribed manner and on payment of the prescribed fee, which .shall not exceed rupees three hundred in any case.

(4) The Central Government shall take such steps ns may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (i) of sub-section (1) entered in the Begister.

5. Fellows and Associates.-—(7) The members of tho Institute shall bo divided -into two classes designated respectively as associates and fellows.

(5) Any person shall, on his name being entered in the Begister, bo deemed "to have become an associate member of the Institute and bo entitled to use the letters A.C.A. after his name to indicate that ho is an associate member of •the Institute of Chartered Accountants.

(3) An associate who has been in continuous practice in India for at least •five years, whether before or after the commencement of this Act, or whother •partly before and partly after the commencement of this Act, shall, on payment of the prescribed entrance fee, which shall not exceed rupees two hundred in -.any cass, and on application made and granted in the prescribed manner,- be •entered in the Register¹ as, a follow of the Institute and shall be entitled to us,e '•the letters F.C.A. after his name to indicate that he is a fellow of the Institute •of Chartered Accountants.

146 THE GAZETTE OF INDIA EXTBAOEDINABY, MAT 8, 1949

6. Certificate of practice.—(1) No member of the Institute shall be entitled to practise unless he has obtained from the- Council a certificate of practice.

(2) Every such member shall pay such annual fee, differing in amount accord- ing as be is an associate or a fellow of the Institute, for his certificate as may be prescribed, and such fee shall be due on the 1st day of April in each year.

7. Members to be known as Chartered Accountants.—Every member of the Institute in practice shall be designated as a Chartered Accountant and no person practising the profession of acoountanoy in India shall use any other designation, whether in addition thereto or in substitution therefor:

Provided that nothing contained in this section shall be deemed to prohMtt any such Derson from adding any other description or letters to his name, il entitled thereto, to indioate membership of such other Institute of accountancy, whether in India or elsewhere, as may be recognised in this behalf by the- Counoil, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from- being known by its firm name as Chartered Accountants.

8. Disabilities.—Notwithstanding anything contained in section 4, a person.' phall not be entitled to have his name entered in or borne on the Begister if he— (i) baa not attained the age of twenty-one years at the time of his- application for the entry of his name in the Begister; or

(ii) has been adjudged by a competent Court to be of unsound mind; or (Hi) is on undischarged insolvent; or (ID) being a discharged insolvent, has not obtained from the Court a. certificate stating that his insolvency was caused by misfortune without any .. misconduct on his part; or

(v) has been convicted by a competent Court whether within or without India, of an offence involving moral turpitude and punishable with trans- port* tion or imprisonment or of an offence, not of a technical nature^ committed by him i^ his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the Central Government has, by an order in- writing, removed the disability; or

(vi) has been found on inquiry to have been guilty of conduot which- renders him unfit to be a member of the Institute.

CHAPTER in

COUNCIL OF TH~R INSTITUTE

9. Constitution ol the Council ol the Institute (i) There shall be a Council' of the Institute for the management of the affairs of the Institute and for discharging the funotions assigned to it under this Act.

(2) The Council shall be composed of the following persona, namely,—

(a) persons elected by members of the Institute from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified in this behalf by the Central Government by notification in the official Gazette; and

(b) five persons nominated by the Central Government.

10. Mode of ©lection to Council—(i) Elections under clause (a) of sub-section (3) of section 9 shall be conducted in the prescribed manner:

Provided that the flrat election under the said clause shall be held In such' EQaniier an Aha. fieatml fitovemnjenj W"% E*M0rfhe4

THE GAZETTE OF INDIA EXTEAOEDINABY, MAY 3, 1949 MT

(2) Where any dispute arises regarding any such election, the matter shall be referred to a Tribunal appointed by the Central Government in this behalf and the decision of Buch Tribunal shall be final.

11. Nomination In default ol election or nomination.—.11 any body of person* referred to in section 9 fails to elect any of the members of the Council which it is empowered under that section to elect, the Central Government may nominate a person duly qualified to fill the vacancy, and any person so nominated "hall bo deemed to be a member of the Council as if he had been duly elected.

12. President and Vice-president.—(2) The Council at its first maeting shall "lect two of its members to be respectively the President and the Vice-President thereof, and so often as the office of the President or the Vice-President beoomet vacant the Council shall choose another person to be the President or the Vice- President, as the case may be:

Provided that on the first constitution of the Council a member of the >Council nominated in this behalf by the Central Government shall discharge the functions of the President, until such time as a President is elected under the provisions of this sub-section,

(2) The President shall be the Chief Executive Authority of the Council.

(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond hi" term of office as a member of the Council, and, subject to his being a member of the Council at the relevant time, he shall be eligible for re-election,

(4) On the dissolution of the Council, the President of the Council at the time of such dissolution shall continue to hold office and discharge such ad- ministrative and other duties as may be prescribed until such time as a new President shall have been elected and shall have taken over charge of MB duties.

13. Resignation ol membership and casual vacancies.—(1) Any member of the Council may at any time resign his membership by writing unaer his hand addressed to the President, and the seat of such member shall become vacant ^rhen such resignation is notified in the Official Gazette.

(2) A member of the Council shall be deemed to have vacated his seat il he is declared by the Council to have been absent without sufficient excuse from three consecutive meetings of the Council, or if his name Is, for any cause, removed from the Eegister under the provisions of section 20-

(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the •case may be, and the person elected or nominated to fill the vacancy shall hold office until the dissolution of the Council.

(4) No act done by the Council shall be called In question on the ground merely of the existence of any vacancy in,, or defect in the constitution of, the Council.

14. Duration and dissolution ol Council.—The duration of any Counofl constituted under this Act shall be three years from the date of its firaf meeting, on the expiry of which it shall stand dissolved and a new Council •constituted in accordance with the provisions of this Aot.

15. Functions of tne Council—(7) The duty of carrying out the provision* of this Act shall be vested in the Council.

[2] In particular, and without prejudice to the generality of tne foreeoinff power, the duties of the Council shall Include—

148 T HE GAZETTE OF INDIA EXTRAORDINARY, MAY 3, 1949

(a) the examination of candidates for enrolment and toe prescribing-;

of lees therefor;

(ft) 6ho regulation of tJbe engagement and training of articled clerks;

(0) the prescribing of qualifications for entry in the Register;

(d) the recognition of foreign qualifications and training for purpose* of enrolment;

(e) tho grunting or refusal of certificates of practice under this Act,;

(f) the maintenance and publication, of a Begister of persons qualified to practise as chartered aojountants;

(g) the \evy and collection of fees from chartered accountants, associ- ates, members, examinees and other persons;

(h) the removal of names from the Eegister and the restoration to the- Register of names which have been removed;

(1) the regulation and maintenance of the status and standard of pro- fessional qualifications of ohartered accountants;

(?) the carrying out, by financial assistance to persons other than* members of the Council or in any other manner, of research in aocount- anoy;

(h) the maintenance of a library and publication of books and periodi- cals relating to accountancy; and

(I) the exercise of disciplinary powers conferred by this Aot.

16. Stall, remuneration and allowances—(1) For the efficient performance- •f Its duties, the Council may-^

(a) appoint a Secretary who may also, if so decided by the Council, aot as Treasurer;

(fc) appoint such other officers and servants as it deems necessary;

(c) require and take from the Secretary or from any other officer _ Of Bervant of the Council such security for the due performance of his duties, as the Council considers necessary;

(d) fix the salaries, fees, allowances and other conditions of service of the officers and servants of the Council;

(e) with the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the: Council.

(8) Notwithstanding anything contained in sub-section (1), on the lira*- constitution of the Council the 8/w>retary shall be a person appointed by thfr Central Government in consultation with the Council, and he shall hold offlo* during the pleasure of the Central Government, but HO as no? to exceed a period of three years from the date of his appointment.

17. Oommitteea of the Council.—^(1) The Council shall -constitute from amongst He members the following Standing Committees, nnmely: —

(i) an Executive Committee, (it) an Examination Committee, and (in) a Disciplinary Committee.

THE GAZETTE OP INDIA EXTBAOBDTNAEY, ",VTAY 3, 1949 14&-

(3) The Counoil may also form such other committees from amongst its- members as it deems necessary for the purpose of carrying out the provision* of this Act.

(<'}) Each of the Standing Committees shall consist of the President and the- ,Vice-Preaident, ex officio, and three other members :>f the Council elected by the Council:

Provided that in the case of the Disciplinary Committee, out of the mem- bers to be elected, two shall be elected by the Council, and the third nomin- ated by the Central Government from amongst the persons nominated to the Council by the Central Government.

(4) The President and the Vice-President of the Council shall be the Chair- man and Vice-Chairman respectively of each oE the Standing Committees.

(5) Every member of the Standing Committee other than the Chairman andi the Vice-Chairman shall hold office for one year from the date of his election, but, subject to being a member of the Council, he shall be eligible for re- election.

(6) The Standing Committees shall exercise such functions and be subject to such conditions in the exercise thereof as may be prescribed.

18. Finances ol the Council.—(1) There shall be established a fund under She management and control of the Counoil into which shall be paid all monies received by the Council and out of which shall be met all expenses and liabili- ties properly incurred by the Counoil.

(3) The Council may invest any money for the time being standing to the- oredit of the fund In any Government security or in any other security approved* by the Central Government.

(3) The Council shall keep proper accounts of the fund distinguishing capita) from revenue.

(4) The annual accounts of the Council shall be subject to audit by a char- tered accountant to be appointed annually by the Council:

-Provided that no member of the Counoil or a person who is in partnership' with suah member shall be eligible for appointment as an auditor under this- •ub-eeotion.

(&) As soon as may be practicable at the end of each year, but not later than the 30th day of (September of the year next following, the Counoil shall cause to be published in the Paxette of India a copy of the audited account* and tho Beport oif the Council for that year, and copies of the said aooounts and Beport shall be forwarded to the Central Government and to all the members of tfie Institute,

(6) The Council may borrow from a scheduled bank, as defined hi the- Beeerve Bank of India Act, J984 (II of 1984), or from the Central Govern- ment—

(a) any money required for meeting its liabilities on capital account on the security of the fund or on the seourity of any other assets for th" time being belonging to it, or

(b) for the purpose of meeting current liabilities pending the receiptt of income, by way of temporary loan or overdraft.

J50 THE GAZETTE OF INDIA EXTRAORDINARY, MAY 8, 1949

CHAPTER IV,

REGISTER OF MHMBBIRS

19. Register.—(2) The Council shall maintain in jbhe prescribed manner A

(£) The Register 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 Register;

(o) his qualifications;

(d) whether he holds a certificate of prpctioe; and

(e) any other particulars •which may be prescribed.

(3) The Council shall cause to be published in the Gaxette of India a lis* •of members of the Institute as on the first day of April of each year,, and a "opy of such list shall be sent to each member of the Institute.

(4) Every member oi the Institute shall, on his name being entered in the Hegister, pay such annual membership fee as may be prescribed.

20. Eemoval from the Regiuter.—(1) The Council may remove from *h"

.Register the name of any member of the Institute—,

(a) from whom a request has been received to that effect; or

(b) who has not paid any prescribed fee required to be paid by him;

(o) who is found to have been subject at the time when hie nome wao entered in the Register, 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.

(5) The Council shall remove from the Register the name of any member •who has been found by the High Court to have been guilty of oouduot which vendors him unfit to be a member of the Institute.

CHAPTER V,

MISCONDUCT .

21. Procedure m inquiries relating to misconduct of memtwrs of Inatt- tute.—(1) Where on receipt of information or on receipt of a complaint made to it, the Counoil is of opinion that any member of the Institute has been guilty of conduot which, if proved, will render him unfit to be a member of the Institute, or where a complaint against a member of the Institute has been made by or on behalf of the Central Government, the Council shall cause an inquiry to be held in such manner as may be prescribed, and the finding of the Council shall be forwarded to the High Court.

(5) On reoeipt of the finding, the High Court shall fix a date for the hear- ing of the case and shall cause notice of the day so fixed to be given to the member of the Institute concerned, the Council and to the Central Govern- ment, and shall afford suoh member, the Council and the Central Government THE GAZETTE OF INDIA EXTRAORDINARY, MAT 8, 1049 lfil

(3) The High Court may, thereafter, either pass such final orders on th" case as it thinks fit or refer it back for further inquiry by the Council and, upon reoeipt of the finding after such inquiry, deal with the case in th" manner provided in sub-section (3) and pass final orders thereon.

(4) "Where it appears to the High Court that the transfer of any case pend- ing before it to another High Court will promote the ends of justice, or tend to the general convenience of the parties, it may BO transfer the oase, subject to such conditions, if any, as it thinks fit to impose, and the High Court, to which such case is transferred, shall deal with it as if the finding of the Council relating to the case had been forwarded to it.

Explanation.—In this section 'High Court' means the highest civil court of appeal, not including the Federal Court, to which the Council forwards its finding, exercising jurisdiction in the area in which the person whose oonduof is being inquired into carries on business, or has his principal place of business at the commencement of the inquiry:

Provided that where the findings of the Council relating to two or more members of the Institute have to be forwarded by the Council to different High Courts, the Central Government shall, having regard to the ends of justice and) . the genera] convenience of the parties, determine which of the High Courts, to the exclusion of the others, shall hear the cases against all the member*.'

22. Misconduct denned.—For the purposes of this Act, the expression "conduct which, if proved, will render a person unfit to be a member of the Institute" shall be deemed, to include any act or omission specified in the Schedule, but nothing in this section shall be construed to limit or abridge tn any way the power conferred on the Council under sub-section (1) of section 21 to inquire into the conduct of any member of the Institute under any other circumstances.

CHAPTER VL

REGIONAL COUNCILS

23. OonBtltutlon and function* of Eegional Councils.—(I) The Council may constitute such Begional Councils as and when it deemg fit for one or more of the regional constituencies that may be specified by the Central Government under clause (a) of sub-section (3) of section 9.

(2) The Regional Councils shall be constituted in such manner and exerclfl* such functions as may be prescribed.

CHAPTER VII

PENALTIES

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 Chartered Accountant, or

(if) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practises as a chartered accountant,

shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction with imprisonment whioh, may extend to six months or with fine which may extend to five thousand, rupees, or with both.

152 THE GAZETTE OF INDIA EXTEAOBPTNABY, MAY 3, J.949

25. Oompanles not to engage in accountancy (1) No company, whether

incorporated in India or elsewhere, shall practiso as chartered accountants.

(2) If any company contravenes the provisions of sub-section (Z), then,, without prejudice to any other proceedings whioh may be taken against the- company, every director, manager, secretary and any other officer thereof who is knowingly a party to Buch contravention shall be punishable witb tine which may extend on first conviction to one thousand rupees, and on any subsequent conviction to five thousand rupees.

26. Unqualified persons not to sign documents.—(1) No person other than a member of the Institute shall sign any document on behalf of a chartered; accountant or a firm of chartered accountants in his or its professional capacity.

(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punish- able with fine whioh may extend on first oonviotion to one thousand rupees and! on any subsequent conviction with imprisonment which may extend to six months or with fine which may extend to five thousand rupees or with both.

27. Maintenance of branch offices.—(1) Where a chartered accountant or a firm of chartered accountants has more than one office in India, each one of such offices shall be in the separnte charge of a member of the" Institute:

Provided that the Council may in suitable, oases exempt any chartered' accountant or a firm of chartered accountants from the operation of this sub- section.

(8) Every chartered accountant or a firm of chartered accountants main- taining more than one office shall send to the Council a list of offices and the? persons in charge thereof and shall keep the Council informed of "any changes. \n relation thereto.

28. Sanction to proaecut".~No person shall be prosecuted under this Ac* except on a complaint made by or under the order of the Council or of the- Central Government.

OHAPTEE V in

MISCELLANEOUS

29. Eectprodty.-—(2) Where any country, specified by the Central¹ Government in this behalf by notification in the official Gazette, prevents persons of Indian domicile from becoming members of any institution similar to the" Institute of Chartered Accountants of India or from practising the pro- fession of accountancy or subjects them to unfair discrimination in that coun- try, no subjeot of any such country shall be entitled to become a member of the Institute or practise the profession of aooountanoy in India.

(3) Subject to the provisions of sub-section (I), the Council may prescribe- the conditions, if any, subjeot to which foreign qualifications relating to ac- countancy shall be recognised for the purposes of entry In the Eegister,

80. Power to make regulations.—<(i) The Council may, by notification in Jhe Gamettt) of India, make regulations for the purpose of carrying ou# flshe objects of this Act, and a copy of such regulations shall be sent to eaoh member of the Institute.

(#) In particular, and without prejudioe to the generality of th© foregoing power, such regulations may provide for all or any of the following matters: — (a) the standard and oonduot of examinations under this Act;

THE GAZETTE OF INDIA EXTEAOBDINARY, MAT 3, 1949 15£-

(6) the qualifications for ^he entry of the name of any person in the Begister as a member of the Institute;

(c) the conditions under which any examination or training may be treated as equivalent to the examination and training prescribed for mem- bers of the Institute;

(d) the conditions under which any foreign qualification may be recog- nised;

(e) the manner in which and the conditions subject to which applica- tions for entry in the Begistor may be made;

if) the fees payable for membership of the Institute and the annual¹., fees payable by associates and fellows of the Institute in respect of their certificates;

(g) the manner in which elections to the Council and the Begional i CounoilB may be held;

(h) the particulars to be entered in the Begister; (i) the functions of Begional Councils; (/) the training of artioled clerks and the fixation ol limits within < •whioh premifl may be charged from suoh clerks and the cancellation of articles for misconduct or for any other sufficient cause;

Qt) the regulation and maintenance of the status and standard oti professional qualifications of members of the Institute; (I) the carrying out of research In accountancy; (m) the maintenance of a library and publication of books and periodi- cals on accountancy;

(n) the management of the property of the Council and the main- tenance and audit of its accounts;

(o) the summoning *tnd holding of meetings of iihe Council, the time* and places of such meetings, the conduct of business thereat and tha number of members necessary to form a quorum;

(p) the powers, duties and functions of the President arid the Vioe- - President of the Council;

(<3") the functions of the Standing and other committees and the con- - ditions subject to which such functions shall be disoharged;

(r) the terms of office, and the powers, duties and functions of the- Secretary and other officers and servants of the Council;

Is) the exercise of disciplinary powers conferred by this Act; and

{t) any other matter which is required to be or may be prescribed ' under this Act.

(3) All regulations made by the Council under this Act shall be subject to the condition of previous publication and to the approval of the Central Gov- ernment.

(4) Notwithstanding anything oontained in sub-sections (1) and (£) the Central Government may frame the first regulations for the purposes mentioned ' in thiB section, and such regulations shall be deemed to have been made by the Oounoil, and shall remain in force from the date of the coming into force ot this Act, until they are amended, altered or revoked by the Council.

81. References to registered accountants, etc. to be construed an references ten- .chartered aocountanta.—Any reference to a registered accountant or a certified.-

HM THE GAZETTE OF INJDIA EXTBAOBDINARY, MAY 8, 1949

or qualified auditor in any other law for the time being in force or in any doou* ment whatsoever shall be construed as a reference to a obartered accountant -as defined in this Act-

32. Act not to affect light ol accountants to practice as such In Acceding "States.-—Nothing contained in this Act shall affect the right of any person who, at the commencement of this Act, fa entitled to engage himself in the practice of accountancy in any Acceding fitate under any law in force in that State, to continue to engage himself in the practice of accountancy in that State after

38. Amendment of section 144, Indian Companies Act, 1913.—In section 144 of the Indian Companies Act, 1913 (VII of 1913), for sub-sections (1), (3), {2A) and (3B), thy following sub-section shall be substituted, namely: —

"(1) No person shall be appointed to act as an auditor of any oom- pany other than a private company, not being the subsidiary company of a public company, unless he is a chartered accountant within the mean- ing of the Chartered Accountants Act, 1949:

Provided that a firm whereof all the partners practising in India are chartered accountants may be appointed by its firm name to be auditor of a, company and may act in its firm name."

SCHEDULE.

(See section 22)

A chartered accountant shall be deemed to be guilty of conduct rendering Iliim unfit to be a member of the Institute, if he—

(a) allows any person to practise in his name as a chartered accountant unless such person is also a chartered accountant and is in partnership with or employed by himself;

(b) pays or allows or agrees to pay or allow, directly or indirectly, to any person other than a member of the Institute or a retired partner or a nominee or the legal representative of such partner, any share, commission or brokerage in the fees or profits of his professional servioes ;

(o) accepts or agrees to accept any part of the profits of the profes- sional work of a lawyer, auctioneer, broker or other agent who is not a member of the Institute;

(d) enters into partnership with any person other than a chartered accountant or secures, either through the services of a person not qualified to be a chartered accountant or by means which are not open to a nhartered accountant, any professional business;

(e) .solicits clients or professional work either directly or indirectly, by circular, advertisement, personal communication or interview or by any other means;

_ (/) advertises his professional attainments or services, or uses any designation or expression other than chartered accountant on professional documents, visiting cards, letter-heads or sign-hoards, unless It be a degrea of a University established by law in India or- recognised by the Central Government or a title indicating membership of the Institute of Chartered Accountants of India or of any other institution that has been recognised by the Central Government or may be recognised by the Council-

THE GAZETTE OF INDIA EXTBAOBDINAEY, MAY 3, 1949 15&

(p) discloses information acquired in the course of his professional engagement to any person other than his client, without the consent of, his client, or otherwise than aB required by any law for the time being in force;

(/i) accepts a position as auditor previously held by another chartered^ accountant without first communicating with him in writing;

(i) acoepts an appointment as auditor of a company without first ascertaining from it whether the requirements of section 144 of the Indian- Companies Act, 1913 (VII of 1918) as respects the appointment of auditors or, if the company is registered in an Acceding State, the provisions oi any similar law for the time being in force in that State, have been duljj complied with;

(j) certifies or submits in his name or in the name of his firm a report, of an examination of financial statements unless the examination of suoK statements and the related records has been made by him or by a partners or an employee in his firm or by another ohartered accountant;

(h) permits his name or the name of his firm to be used in connection with an estimate of earnings contingent upon future transactions in a.-' manner which may lead to the belief that he vouches for the aoouraoy ol the forecast;

(I) expresses his opinion on financial statements of any business or•• any enterprise in which he, his firm or a partner in his firm has a sub- stantial interest, unless he discloses the interest also in his report;.

(m) charges in respect of any professional employment feee which, are based on a percentage of profits or which are contingent on results;

(w) engages in any business or occupation other than the profession of chartered accountants unless permitted by the Council so to engage:

Provided that nothing contained herein Bhall disentitle a chartered.account-- ftnt from being a director of a company, unless he or any of his• partners is. interested in such company as an auditor;

(o) fails to disclose a material fact known to him which h not dis- closed in a financial statement, but disclosure of whioh is necessary to make the financial statement not misleading;

(p) fails to report a material misstatement known to him to appear in "J financial statement with which he is concerned in a professional capacity;. (?) is grossly negligent in the conduct of his professional duties; (r) fails to obtain sufficient information to warrant the expression of* an opinion or his exceptions are sufficiently material to negate the expres- sion of an opinion,

(s) fails to invite attention to auy mnterial departure from the gene- - rally accepted procedure of audit applicable to the circumstances;

(t) fails to keep monies of his client in a separate banking, account or- to use such monies for purposes for which they are intended;

(u) includes in any statement, return or form to be submitted to the- Counoil any particulars knowing them to be false;

(") is guilty of such other act or omission in his¹ professional capadfly ad may be specified by the Council in thia- behalf, by notification jn thee 156 THE GAZETTE OF INDIA EXTBAOEDINABY, MAY 3, 1949

ACT NO. XXXtX oir 1940.

An Act further to amend the CAnematograpk Aot, 191R.

WHEREAS it is expedient further to amend the Cinematograph Aot, .1918 (H of 1918), for the purposes hereinafter appearing;

It ia hereby enacted as follows : —-

1. Short title and commencement.—(1) This Act may be called the Cinema- tograph (Amendment) Act, 1949.

(2) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint.

2. Amendment ol section 2, Act II of 1918.—In section 2 of the Cinema- tograph Aot, 1918 (II of 1918) (hereinafter referred to as the said Act), before |the definition of "Cinematograph", the following definition shall be inserted, namely,—-

; "adult" means a person who has completed his eighteenth year:'

B. Amendment ol section D, Aot II ol 1918.—After sub-section (2) of section 15 of the said Act, the following sub-seotion shall be inserted, namely:—>

"(2A) A condition shall also be inserted in every lioenoe that the licensee will not exhibit or permit to be exhibited, in such place to any person who is not an adult any fl'm which has been certified by an autho- rity constituted under section 7 as suitable for public exhibition restricted to adults."

[. Amendment of section 7, Act n of 1918 In section 7 of the said Act,—

(t) in sub-section (2), for the words "suitable for pub'ic exhibition'¹ the words "suitable for unrestricted publio exhibition or for public exhibition restricted to adults and children in firms, below the ago of three" shall be .substituted;

(it) in sub-section (#), for the first sentenco, the following sentence shall be substituted, namely: —

'If any such authority after examination considers that a film ia suitable for unrestricted pub'ic exhibition, or that although not suitable for suoh exhibition, it is suitable for public exhibition restricted to adults and children in arms, below the age of three, it shall grant to the person applying for a certificate in respect of the film, a " U" certificate in the former case and an "A" certificate in the latter cuse, and shall in eithor case cause the film to be marked in the prescribed manner. ';

(Hi) after sub-section (2), tho following sub-seotion shall be inserted, rnamely: —

'.(2A) If the person applying for a certificate in respect of the film is aggrieved by the decision of the authority to grant an "A" certificate for it, he may, within thirty days from the date of such decision, appeal to the Provincial Government constituting the authority /or a reconsideration of the matter, and the Provincial Government may either reject the appeal or direct the grant of a "TJ" certificate instead of an "A" certificate for the film.'

THE GAZETTE OF INDIA EXTEAORDINAEY, MAY 3, 1949 167

ACT NO. XL OF 1949.

.'An Aot }o repeal certain enactments and to amend certain other enactments.

WIIKUEAS it is expedient that certain enactments whioh are spent or have otherwise become unnecessary, or have ceased to be in force otherwise than by •tixpress.cd specific repeal, should bo expressly and specifically repealed;

AND WHERBAS it is expedient that certain amendments should be made 1B •certain other enactments;

It h hereby enacted as follows: —

1. Short title.—:This Act njay bo called the Repealing and Amending Aoi, S194U.

2. Repeal of certain enactments.—The enactments specified in the FiraS ^Schedule are hereby repealed.

3. Amendment of certain enactments.—The enactments specified in the • Second Schedule, are hereby amended to the extent and in the manner mentioned tin the fourth column thereof.

4. Savings.—The repeal by this Act of any enactment shall not affect any •other enactment in which the repealed enactment has been applied, incorporated •or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of any thing already done or Buffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect •thereof, or any release or discharge of or from any debt, penalty, obligation, .liability, claim or demand, or any indemnity already granted, or the proof of any pasi act or thing;

nov shall this Act affect any principle or rule of law, or established jurisdic- tion, form or course of pleading, practice or procedure, or existing usage, custom, ^privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed, recognised or •derived by, in or from any enactment hereby repealed;

nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, aisagc, practice, procedure- or other matter or thing not now existing or in force.

REGISTERED No. D-28

EXTRAORDINARY

PUBLISHES BY AUTHORITY

NEW DELHI, TUESDAY, MAY 3, 1949

PART IV

GOVERNMENT OF INDIA

MINISTRY OF LAW

New Delhi, the 3rd May, 1949

CHAPTER I

PRELIMINARY

(143)

CHAPTER II

CHAPTER in

COUNCIL OF TH~R INSTITUTE

REGISTER OF MHMBBIRS

CHAPTER VL

REGIONAL COUNCILS

CHAPTER VII

PENALTIES

OHAPTEE V in

MISCELLANEOUS

(See section 22)

An Act further to amend the CAnematograpk Aot, 191R.

.'An Aot }o repeal certain enactments and to amend certain other enactments.

THE FIRST SCHEDULE

Repeals

(See seotion 2)

Short title

Acts of the Otntral Legislature

. The Moorshedabad (Amendment) Aot, 1923.

1923

. The Indian Soft Coke CeM Aot, 192B.

1929

1942

. The Indian Patents and Designs (Extension of Time)

Aot, 1942.

1946

1947

. The Reserve Bank of India (Amendment) Aot, 1D47.

Short title

Year

TTTTTTT

The Beserve Bank of India (Second Amendment) Act,

1047

10*7.

Tbe Indian Patents and Designs (Extension of Time)

1047

Amendment Act, 1047.

Ordmanct* made by tht Qovernor-Qtntral

The Motor Vehicle! (Drivers) Ordinance, 1042.

1042

The Reserve Bank of India, (limitation of Dividend)

1048

Ordinance, 1948.

The Penal Deduction* Ordlnanoe, 1943.

1948

The Bengal Textiles Association Ordinance, 1040.

1048

Tbe Cotton Textile* Equalisation JTund Ordinance,

1047

THE SECOND SCHEDULE

Amendments

(See BeotJon 3)

Short title

Year

Amendmenta

Acts of th" Central Ltgitlatur*

. The Indian Divorce Act,

TE Kuli-tecTior (]) of eecticn S, for clause*

1869

1860.

(a) to (A), the following clause* shall b"

tubstituted :—

"(a) in a Governor's Province r.

the High Court of that Province ;

(6) in Delhi, the High Court of

Eaet Punjab ;

(o) in AJmor-Merwara-, the ETjgh,

Court at Allahabad ;