Student wins against ICAI | Court directs to Grant ICAI membership despite pursuing multiple courses

The Karnataka High Court has recently issued a directive to the Institute of Chartered Accountants of India (ICAI) concerning the membership approval for a 23-year-old aspiring Chartered Accountant, Nikkitha K J. The court, recognizing the petitioner's commitment to pursuing multiple courses alongside the CA program, emphasized the importance of accommodating students seeking additional qualifications.

In response to an order dated 1-05-2023 by ICAI denying membership to the petitioner, the court, led by Justice M Nagaprasanna, intervened, asserting, "I deem it appropriate to bend the arc of justice for a student and direct the grant of Membership to the petitioner without brooking any further delay."

Nikkitha's journey involved joining B.Com degree at ASC Evening Degree College in May 2017 and subsequently undertaking Chartered Accountant Articleship training on 27-08-2018. Seeking permission to continue her B.Com degree, she adhered to the Chartered Accountants Regulations, 1988.

Upon completion of her B.Com degree in September 2020, Nikkitha sought permission to take the CMA final exam, which was granted along with the allowance for additional courses. By December 2020, she successfully completed the CMA final exam and applied for enrollment as a Chartered Accountant.

ICAI's response, citing a violation of regulations on Articleship, imposed a two-year restriction on enrollment and a Rs.10,000/- fine. The respondents argued that the petitioner pursued multiple courses without proper permission, making her eligible for enrollment only from February 2025.

However, the court scrutinized the records, highlighting the petitioner's diligence in seeking and obtaining permissions from ICAI throughout her academic journey. The bench emphasized that the Institute should acknowledge the student's dedication and not undermine her career over alleged permission discrepancies.

The court deemed it surprising that the respondent sought to impede the progress of a diligent student who, with the Institute's permission, pursued multiple courses to enhance her skills as a Chartered Accountant. It asserted that a student, focused on studies and seeking permissions diligently, should not face hindrances in their career.

In conclusion, the Karnataka High Court ruled in favor of the petitioner, directing ICAI to reconsider the grievance and enroll Nikkitha as a Member of the Institute, emphasizing the significance of nurturing students with extra acumen in their pursuit of excellence in the field of Chartered Accountancy.