The Karnataka High Court (HC) ruled that it was reasonable to "bend the arc of justice" to accommodate a student, granting her membership in the Institute of Chartered Accountants of India (ICAI).
The student had completed several foundation courses that came before the final courses, despite the ICAI's allegation that it had only granted her clearance for the final courses under Regulation 65 of the institute.
The court rejected this contention in its recent judgement, calling it "a contention skating on thin ice, as the foundation courses get subsumed in the final courses, and permission is granted for pursuing final courses”.
After the institute refused to grant Nikitha KJ's request for membership to practise as a chartered accountant in an order issued on May 1, 2023, the Bengaluru resident went to court, according to PTI.
In 2017, Nikitha enrolled in both the CMA Foundation and a BCom programme concurrently. In 2018, she went on to study a CS-Executive Course. Apart from the BCom degree, she also enrolled in and finished several additional courses.
She enrolled in the Chartered Accountant Articleship Programme and applied for permission to continue her BCom degree. She was granted permission, and she graduated BCom in 2020. She then finished the CMF final test and the CS Professional course.
She eventually applied for enrollment at the institute.
The institute denied her candidature after first requesting clarity on how she pursued numerous courses. It also fined her Rs 10,000 for enrolling in numerous courses.
In the court
The institute argued before Justice M Nagaprasanna's bench that multiple courses being taken by the student who had enrolled for Articleship are prohibited under Regulation 65.
Nikitha, on the other hand, claimed that she took permission each time she wanted to pursue a new course, and it was also granted to her.
"A student will not know the implications of the law. A student knows only to study and ponder over the study material. She has studied and completed the courses. It is rather surprising that the second respondent wants to stifle the career of a student, who has pursued multiple courses and gained such acumen to practice as a Chartered Accountant," the court said in its judgement.
The court said that the student had more acumen than specified.
"It would be helpful to the Institute of Chartered Accountants, and the Society, if a student has extra acumen, than the chartered accountantship alone. Such acts of the second respondent against a student who has only studied and done nothing else, that too, after seeking permission, would not behove the 2nd respondent to be a State under Article 12 of the Constitution of India," it said.
The court noted that the student had obtained permission from the institute on every occasion she pursued a new course and that the institute cannot now hide under the regulations.
"The petitioner/student has been diligent in securing permissions. The mighty respondent now wants to jeopardise the career of a student on the score that it had not properly accorded permission or permission was not properly sought by the student. This act of the 2nd respondent (Institute) sans countenance," the court said.
The court rejected all the submissions of the ICAI and said in its judgement on December 7, "Therefore, this Court repels those submissions of the learned counsel for 2nd respondent, for the aforementioned reasons, I deem it appropriate to bend the arc of justice for a student and direct grant of Membership of the petitioner to the Institute without brooking any further delay.”
The court also directed the institute to "consider addressing the grievance of the petitioner in accordance with law and enrolling her as a member of the institute bearing in mind the observations made in the course of the order”.
ICAI was directed to pass an order within four weeks.
