Disciplinary Directorate
Section 21 of the Chartered Accountants Act, 1949 deals with disciplinary Directorate. [ [21. Disciplinary Directorate.--(1) The Council shall, by notification, establish a Disciplinary Directorate headed by an officer of the Institute designated as Director (Discipline) and such other employees for making investigations in respect of any information or complaint received by it. The Act came into force on 01 Jul 1949.
1[ 2[21. Disciplinary Directorate.--(1) The Council shall, by notification, establish a Disciplinary Directorate headed by an officer of the Institute designated as Director (Discipline) and such other employees for making investigations in respect of any information or complaint received by it.
(2) On receipt of any information or complaint along with the prescribed fee, the Director (Discipline) shall arrive at a prima facie opinion on the occurrence of the alleged misconduct.
(3) Where the Director (Discipline) is of the opinion that a member is guilty of any rofessional or other misconduct mentioned in the First Schedule, he shall place the matter before the Board of Discipline and where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the Second Schedule or in both the Schedules, he shall place the matter before the Disciplinary Committee.
(4) In order to make investigations under the provisions of this Act, the Disciplinary Directorate shall follow such procedure as may be specified.
(5) Where a complainant withdraws the complaint, the Director (Discipline) shall place such withdrawal before the Board of Discipline or, as the case may be, the Disciplinary Committee, and the said Board or Committee may, if it is of the view that the circumstances so warrant, permit the withdrawal at any stage.]]
Section 21, The Chartered Accountants Act, 1949 (Act 38 of 1949).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Council of the Institute of Chartered Accountants of India v. Manish Agarwal
Court's Decision & Legal Precedent
Division Bench Oral Order on ICAI reference under Chartered Accountants Act ss.21(5)/21(6): court examined professional misconduct framework under s.22 and disciplinary reference procedure under s.21 for alleged misconduct warranting removal from Register.
On this section: s.21 — Disciplinary Directorate / reference under s.21(5)/21(6) for misconduct inquiry
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Leave granted in SLP (Civil) No.1808 of 2016 filed against the order dated 3rd August, 2015 of the High Court of Karnataka in Writ Petition No.17959 of 2012. The petition before the High Court sought direction for exercise of power under Section 21 of the Chartered Accountants Act, 1949 ('CA Act') to initiate investigation against Multi-National Accounting Firms (MAFs) and Indian Chartered Accountancy Firms (ICAFs) having arrangement with such MAFs for breach of Code of Professional Conduct under the CA Act and also to take penal action by way of cancellation …
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… Leave granted in SLP (Civil) No.1808 of 2016 filed against the order dated 3rd August, 2015 of the High Court of Karnataka in Writ Petition No.17959 of 2012. The petition before the High Court sought direction for exercise of power under Section 21 of the Chartered Accountants Act, 1949 ('CA Act') to initiate investigation against Multi-National Accounting Firms (MAFs) and Indian Chartered Accountancy Firms (ICAFs) having arrangement with such MAFs for breach of Code of Professional Conduct under the CA Act and also to take penal action by way of cancellation …
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… the Respondent while issuing the certificates to the units had failed to obtain sufficient information to warrant the expression of his opinion and found him guilty of professional misconduct within the meaning of Clauses (7) and (8) of Part I of the Second Schedule to the Chartered Accountants Act, 1949 read with Sections 21 and 22 of the said Act. The matter was thereafter placed before the Council of the Institute of Chartered Accountants of India, hereinafter referred to as the 'Council'. The Council, after considering the submission of the Respondent herein, vide order dated 17th January, 1998 agreed with the findings of …
Made under this section, and citing it
5 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- The Chartered Accountants Act(Procedure of Investigation of Professional and Other Misconduct and Conduct of Cases)Amnendment Rules, 2018 (1.32 MB)Rule 2018
- Rules to amend the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) rules, 2007Notification 2011
- Chartered Accountants Disciplinary Rules, 2007 - Updated as on 1 st October, 2020Rule 2007
- Framing of Rules under Section 29(A), sub section 2, clause c and d of the Chartered Accountants Act 1949Notification 2007
- Procedure of Investigation ( English & Hindi version) (1.1 MB)Rule 2007
Another 3 instruments name this provision in its title or its text without being made under it.
- Notification for appointement of Director(Discipline) in exercise of powers conferred by sub-section (1) of Section 21 of the Charted Accountants Acts ,1949 (38 of 1949)Notification 2008
- embers of professional institutes arrested by law enforcement agencies for criminal offences - Deirections of Central Government - issue of.Circular 2010
- The Chartered Accountants Regulations, 1988Regulation 1988
Questions about Section 21
What have the courts held on Section 21 of the Chartered Accountants Act?
Council of the Institute of Chartered Accountants of India v. Manish Agarwal (29 Jul 2025) is the leading judgment on this section among those set out below: s.21 — Disciplinary Directorate / reference under s.21(5)/21(6) for misconduct inquiry.
How do I find court cases under Section 21 of the Chartered Accountants Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Chartered Accountants Act 21, section 21 Chartered Accountants Act, section 21 of the Chartered Accountants Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Council of the Institute of Chartered Accountants of India v. Manish Agarwal (29 Jul 2025).
What should I read with Section 21 of the Chartered Accountants Act, and has it changed?
4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 5: most recently The Chartered Accountants Act(Procedure of Investigation of Professional and Other Misconduct and Conduct of Cases)Amnendment Rules, 2018 (1.32 MB) (2018), then Rules to amend the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) rules, 2007 (2011), and 3 more.
When did Section 21 of the Chartered Accountants Act come into force?
Section 21 of the Chartered Accountants Act, cited as Chartered Accountants Act 21, came into force on 01 Jul 1949, having been enacted on 01 May 1949. It is in force as at the date shown on this page.
Other sections of this Act
- 30. Power to make regulations824 words
- 2. Interpretation777 words
- 18. Finance of the Council513 words
- 4. Entry of names in the Register of members495 words
- 15. Functions of the Council337 words
- 12. President and Vice-President300 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.