Ground Private Limited requested CA Sukh, a practicing Chartered Accountant, to digitally sign the form related to resignation of Mr. Nishant, one…

As per Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949, a Chartered Accountant in practice is deemed to be guilty of professional misconduct if he does not exercise due diligence or is grossly negligent in the conduct of this professional duties. In the given case, Ground Private Limited requested CA Sukh, a practicing Chartered Accountant, to digitally sign the form related to resignation of Mr. Nishant, one of the Directors of Ground Private Limited, along with the copy of Resignation Letter to be uploaded on the website of Registrar of Companies. The signature of Mr. Nishant was simply copied and pasted by another Director of Ground Private Limited. CA Sukh, without verifying the genuineness of the Resignation Letter, digitally signed the Form and the said form was uploaded on the website of Registrar of Companies. Due to forged resignation letter, the resignation of Mr. Nishant from directorship of the Ground Private Limited had been affected. It was noted that CA Sukh had not taken any step to verify forged signature on resignation letter which anyone would have undertaken in normal circumstances. Hence, CA Sukh would be held liable for professional misconduct as per Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.