Delhi High Court
Lalit Kumar Saxena vs The Institute Of Cost Accountants ... on 8 April, 2019
$~7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 321/2017
LALIT KUMAR SAXENA ..... Petitioner
Through: Counsel (appearance not given).
versus
THE INSTITUTE OF COST ACCOUNTANTS
OF INDIA & ANR ..... Respondents
Through: Mr G.S. Chaturvedi, Advocate.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
ORDER
% 08.04.2019
VIBHU BAKHRU, J
1. The petitioner has filed the present petition, inter alia, praying
that directions be issued to the respondents to issue a certificate
certifying that the petitioner has passed the final examination of the
Cost Accountants of India. Respondent no.1 is the Institute of Cost
Accountants of India (ICAI) and has been constituted under the Cost
and Works Accountants Act, 1959.
2. ICAI conducts an academic course for acquiring the
qualification of a cost accountant. The said course is divided into two
examinations, namely, intermediate and final. Both the examinations
consist of two groups (referred to as „Stages‟). The intermediate
examination comprises of Stage-I and Stage-II and the final
examination comprises of Stage-III and Stage-IV. Each of the group
consists a number of papers and a candidate is required not only to
achieve the passing marks in each of the papers comprising of a group,
but is also required to achieve the specified aggregate marks to pass a
group.
3. Students are granted registration for a specified period within
which a student is required to clear both the examinations
(intermediate and final). In terms of the Costs and Works Accountants
Regulations, 1959 (hereafter „the Regulations‟), a student can be
granted re-registration after the expiry of the final registration.
4. The petitioner was registered with ICAI (then known as
"Institute of Cost and Works Accountants of India") in October, 1996.
The said registration was granted after the petitioner had completed
the foundation course for being enrolled for the certification course of
a Cost Accountant.
5. The petitioner appeared for the first group (Stage-I) of the
intermediate examination in June, 1997 comprising of four papers in
and cleared the same.
6. The petitioner passed the second stage of the intermediate
examination held in December, 1998. Accordingly, ICAI issued a
certificate dated 18.03.1999, certifying that the petitioner had
completed his intermediate examination held in December, 1998.
7. The petitioner then appeared for the final examination (Stage-
III) in December 1999 and cleared the same.
8. Thereafter, the petitioner‟s registration with ICAI expired
sometime in the year 2002-03. Accordingly, the petitioner obtained a
de novo registration (Registration No. RSW/77703) of the ICAI for
clearing the last group (Stage-IV) of the final examination. However,
despite his best efforts, the petitioner could not clear the second group
(Stage-IV) of the final examination. After several years, the petitioner
once again applied for a de novo registration on 05.01.2015 and was
granted a de novo registration for the second time (Registration No.
24962008566). It is stated that at the material time, ICAI conducted
the course for the final examination under the syllabus as prescribed in
the year 2008 (Syllabus 2008) and the new syllabus as prescribed in
2012 (Syllabus 2012). The petitioner opted to take the final
examination (Stage-IV) by opting for the Syllabus 2012. He appeared
in the examination held in June 2015 but could not clear the same.
Thereafter, the petitioner once again appeared for the final group
(Stage-IV) of the final examination in June, 2016 and cleared the
same.
9. The petitioner thereafter approached ICAI for issuance of the
certificate for clearing the final examination, however, the same was
declined by ICAI for the reason that the petitioner had not cleared
Stage-III of the final examination. According to ICAI, the petitioner
had cleared the first Group (Stage-III) of the final examination
conducted in respect of the syllabus that was prescribed prior to 2002
and, therefore, the same could no longer be counted as clearing Stage-
III of the final examination.
10. In the aforesaid context, the principal issue to be addressed is
whether Stage-III of the final examination cleared by the petitioner in
December, 1999 is required to be considered for the final examination
conducted in 2016.
11. The petitioner has relied upon Regulation 25A of the
Regulations in support of his claim that he was entitled to examination
for appearing in Stage-III of the final examination as he had cleared
the same in December, 1999. The respondents, on the other hand,
contended that in terms of Regulation 35 of the Regulations, the
Council is empowered to decide as to which examination may be
granted to the students. It is contended on behalf of ICAI that it had
issued a circular dated 30.07.2015 clearly specifying that in case the
student has passed any one group of the final course under any
syllabus prior to the syllabus prescribed in 2002, he would be required
to appear for both the groups at the respective level. Thus, according
to ICAI, the petitioner‟s claim for exemption from appearing in Stage-
III of final examination is not sustainable.
12. Before proceeding to examine the relevant Regulations, it
would be necessary to note that the petitioner was registered with
ICAI in October, 1996 and, at the material time, ICAI was conducting
the course under a syllabus prescribed in the year 1994 (1994
Syllabus). The said syllabus was, subsequently, modified in 2002
(2002 Syllabus). The syllabus was once again modified in the year
2008 (2008 Syllabus) and thereafter, in 2012 (2012 Syllabus). There is
no controversy with regard to the petitioner clearing the intermediate
examination, as the petitioner had cleared both the groups (Stage-I and
Stage-II) prior to 2002.
13. Although the petitioner had cleared one group of the final
examination in December 1999, clearly the same was insufficient for
the petitioner to have claimed that he has cleared the final
examination. The petitioner was required to pass both the groups of
the final examination for passing the final examination. As noticed
above, the petitioner could not clear the remaining group (Stage-IV) of
the final examination at the material time.
14. The petitioner once again applied for registration in 2002-03 but
could not clear the second group (Stage-IV) of the final examination.
At the material time, the 2002 Syllabus had come into force. The
petitioner once again registered as a student in January, 2015 and
opted for the 2012 Syllabus. The petitioner, thereafter, cleared his
second group of the final examination under the 2012 Syllabus.
15. It is seen from the above that whereas the petitioner had cleared
his first group (Stage-III) under the different syllabus, it has cleared
the second group under a different syllabus. Once again, it is apparent
that the decision of the ICAI to not consider the marks obtained by the
petitioner in Stage-III in December, 1999 as a part of the final
examination conducted under the 2012 Syllabus, cannot be faulted.
16. The Institute of Cost Accountants is incorporated by virtue of
Section 3 of the Cost and Works Accountants Act, 1959. Section 9 of
the said Act provides for constitution of the Council of the Institute for
Management of its affairs and for discharging the functions as
assigned to it under the said Act. Section 15 of the said Act stipulates
that ICAI shall function under the overall control and guidance of the
Council. Section 15 of the said Act, is set out below:-
"15. Functions of Council
. (1) The Institute shall function under the overall
control, guidance and supervision of the
Council and the duty of carrying out the
provisions of this Act shall be vested in the
Council.
(2) In particular, and without prejudice to the
generality of the foregoing powers, the duties
of the Council shall include:
(a) to approve academic courses and their
contents;
(b) the prescribing of fees for the
examination of candidates for enrolment;
(c) the prescribing of qualifications for entry
in the Register;
(d) the recognition of foreign qualifications
and training for the purposes of
enrolment;
(e) the prescribing of guidelines for granting
or refusal of certificates of practice under
this Act;
(f) the levy of fees from members,
examinees and other persons;
(g) the regulation and maintenance of the
status and standard of professional
qualifications of members of the Institute;
(h) the carrying out, by granting financial
assistance to persons other than members
of the Council or in any other manner, of
research in accountancy;
(i) to enable functioning of the Director
(Discipline), the Board of Discipline, the
Disciplinary Committee and the
Appellate Authority constituted under the
provisions of this Act;
(j) to enable functioning of the Quality
Review Board;
(k) consideration of the recommendations of
the Quality Review Board made under
clause (a) of section 29B, action taken
thereon with a report to the Central
Government within a period of three
months, and their inclusion in the annual
report; and
(l) to ensure the functioning of the Institute
in accordance with the provisions of this
Act and in performance of other statutory
duties as may be entrusted to the Institute
from time to time"
17. It is clear from the above that the functions of the Council
include approving academic courses and their contents. The Council is
also charged with the function of regulating and maintaining the
standard of professional qualifications of the members of the Institute.
18. In view of the above, the decision of the Council to prescribe a
syllabus for its academic course is, squarely, within its jurisdiction.
19. In order to examine the rival contentions, it is also necessary to
refer to Regulation 25A and Regulation 35 of the Regulations, which
are set out below:-
"25A. Registration denovo -- A person whose
registration has been cancelled under regulation 25 may
apply in appropriate form along with the required fee to
become a Registered Student denovo and on his
application being granted, he shall be deemed for all
purposes to have been admitted and he shall be entitled to
the exemption from individual subjects/ stages of the
Intermediate or Final Examination, as the case may be
previously secured by him under his former registration,
subject to the provision of regulation 41.
xxxx xxxx xxxx
35. Exemption from the papers for appearing in Final
Examination :
(1) The Council may decide the individual paper
from which exemption may be granted to students who
have passed such examination of any University or
professional institutes or professional bodies or on
reciprocal basis of such University or professional
institutes or professional bodies in India or abroad us may
be recognized by it in this behalf.
(2) The Council shall also have the power to decide
and shall decide the individual Subjects/Stages of the
Final examination from which a candidate, who is
admitted as a Fresh Registered Student under Regulation
25(a) shall be exempted on the basis of exemption from
individual Subjects/ Stages previously secured by him/her
under his/her former registration.
(3) The Council may decide giving exemptions to
candidates for any examination conducted by it for any of
the levels or papers already passed by a candidate for
which examinations were conducted by the Council, on
the basis of such guideline as may be decided by the
Council.
(4) A Candidate who has obtained exemption or
obtained the benefit of carry forward of marks in any of
the paper of the Final examination under old syllabus
shall be emitted to exemption only in the corresponding
equivalent papers of Final examination under the revised
syllabus :
Provided that the benefit of carry forward of marks
by virtue of the result of any examination under old
syllabus shall not be available in any paper of Final
examination under revised syllabus.
A candidate who has obtained exemption or
obtained the benefit of carry forward of marks in any of
the above paper of the Final Examination under old
syllabus shall be entitled to exemption only in the
corresponding equivalent papers of Final Examination
under the revised syllabus. However, the benefit of carry
forward of marks by virtue of the result of any
examination under old syllabus shall not be available in
any paper of Final Examination under revised syllabus.
Provided further that this regulation is subject to
the provisions of regulation 41."
20. By virtue of Regulation 25A of the Regulations, a person whose
registration has been cancelled may apply for a de novo registration. It
further specifies that in such cases, the student would be entitled to
exemption from individual subjects/stages of the intermediate/final
examination, as the case may be. Thus, there is merit in the contention
that the petitioner would be entitled to exemption in respect of the
stages passed earlier. However, Regulation 25A has to be read in
conjunction with Regulation 35 which expressly provides for the
exemption as available. In terms of Sub-rule 2 of Regulation 35, the
Council is required to decide the individual subjects / stages of the
final examination from which the exemption is available under
Regulation 25A.
21. In the present case, the Council of ICAI has issued a circular
dated 30.07.2015, issuing certain clarifications. Annexure III of the
said Circular provides for a detailed clarification in respect of students
who had registered under any syllabus prior to 2002 Syllabus.
Annexure III of the said Circular is reproduced below:-
"ANNEXURE 3
Students registered to the Course under any syllabus prior
to Syllabus 2002
Case 1
Students registered prior to syllabus 2002 ;
Passed/qualified in any one group of Intermediate/Final
Course, under any syllabus prior to Syllabus 2002;
To avail benefit of passing a stage / group under any syllabus
prior to syllabus 2002, require to fulfil the following
condition:
Should have appeared under both syllabus 2002 and
In such case, the exemption mapping will be in line with
students under syllabus 2002 (as per Annexure 2)
Case 2
Students registered prior to syllabus 2002 ;
Passed/qualified in any one group of Intermediate/Final
Course, under any syllabus prior to Syllabus 2002;
Not appeared under syllabus 2002; or
Appeared under syllabus 2002 but not 2008.
Hence, shall have to appear in both groups at the respective
level, under syllabus 2012.
"
22. The petitioner‟s case clearly falls under "Case 2" as set out
above.
23. In view of the above, the petitioner‟s result of the Stage-III
examination cannot be counted towards passing the final examination.
Thus, this Court is unable to accept that any relief can be granted to
the petitioner.
24. The petition is, accordingly, dismissed.
VIBHU BAKHRU, J
APRIL 08, 2019
RK
