Facts of the Case

The National Financial Reporting Authority (NFRA) issued Order No. 41/2023 dated 29 September 2023 in the matter concerning CA M. Vaman Kamath, ICAI Membership No. 023992, under Section 132(4) of the Companies Act, 2013 read with Rule 11(6) of the National Financial Reporting Authority Rules, 2018.

Subsequently, NFRA issued Corrigendum No. NF-21/1/22 dated 07 February 2024 to make a correction in Paragraph 50 of the original order after publication on the NFRA website.

Issues Involved

  1. Whether a correction was required in Paragraph 50 of NFRA Order No. 41/2023.
  2. Whether the wording relating to conflicting statements made by the Chartered Accountant in written submissions and during the personal hearing required modification.

Petitioner’s Position

The corrigendum does not record any separate submissions or arguments on behalf of CA M. Vaman Kamath. The document is limited to correcting the language used in Paragraph 50 of the original order.

Respondent’s Position

NFRA determined that a correction was necessary in the published order and accordingly issued a corrigendum to modify the language appearing in Paragraph 50.

Court/Authority Findings

NFRA directed that the following sentence appearing in Paragraph 50 of Order No. 41/2023:

“We also find that he made conflicting statements in his written submissions and during the personal hearing before the EB, further indicating unprofessionalism on his part”

shall be read as:

“We also find that he made conflicting statements in his written submissions further indicating unprofessionalism on his part.”

The corrigendum clarifies that the reference to statements made during the personal hearing before the Executive Body (EB) stands removed from the original observation.

Court Order

NFRA formally issued the corrigendum and directed that the above modification be incorporated into Order No. 41/2023 after its publication on the NFRA website.

Important Clarification

  • The corrigendum does not alter the substantive findings of the original disciplinary proceedings.
  • The correction is confined to Paragraph 50 of Order No. 41/2023.
  • The revised observation attributes the conflicting statements only to the written submissions made by the Chartered Accountant.
  • The reference to conflicting statements during the personal hearing before the Executive Body has been deleted.

Relevant Provisions Involved

  • Section 132(4) of the Companies Act, 2013
  • Rule 11(6) of the National Financial Reporting Authority Rules, 2018

Link to download the order - https://cdnbbsr.s3waas.gov.in/s3e2ad76f2326fbc6b56a45a56c59fafdb/uploads/2024/02/20240207748524131.pd

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