Sections 21C explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Three short sections close the discipline chapter's core. Section 21C gives the disciplinary bodies the powers of a civil court for an inquiry, section 21D keeps old cases under the old law, and section 22 says that an act or omission listed in the Schedules is "professional or other misconduct". This article follows the text as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022).
For an inquiry, the Authority, the Disciplinary Committee, the Board of Discipline and the Director (Discipline) hold the same powers as a civil court on three matters: summoning and examining on oath, discovery and production of documents, and evidence on affidavit. Section 21D keeps pending complaints, inquiries, references and appeals under the earlier law. Section 22 deems every act or omission in the Schedules to be misconduct without limiting the Director (Discipline)'s wider power to inquire. Section 21D and section 22 were rewritten in 2022, but the rewritten text is enacted and not yet in force; the 2006 wording is what applies.
Where these sections sit
Chapter V of the Act deals with disciplinary matters. Section 21 sets up the Disciplinary Directorate, section 21A the Board of Discipline and section 21B the Disciplinary Committee. Our notes on section 21 and the Director (Discipline) explain how a complaint reaches those bodies. Sections 21C, 21D and 22 sit behind them: how the bodies gather evidence, which cases stay under older rules, and what counts as misconduct.
A member facing a complaint, a firm whose partner is under inquiry, and a complainant waiting for an outcome all meet these three sections. If you need a reasoned reading of a notice or a complaint, our legal dispute resolution team can go through the file with you.
Commencement: what is in force and what is not
The 2022 Amendment Act came into force only in part, by S.O. 2184(E) dated 10 May 2022. For these three sections the position is:
| Provision | Position |
|---|---|
| Section 21C (a) to (c) | In force. The Explanation to section 21C was omitted from 10 May 2022 |
| Section 21D | The 2006 wording is in force. The 2022 substituted text is enacted but not yet brought into force |
| Section 22 | The 2006 wording is in force. The 2022 substituted text is enacted but not yet brought into force |
A later commencement notification should be checked before relying on the 2022 text of sections 21D and 22.
Section 21C: powers of a civil court
Section 21C applies "for the purposes of an inquiry under the provisions of this Act". Four bodies hold the powers: the Authority, the Disciplinary Committee, the Board of Discipline and the Director (Discipline). The powers are the same as are vested in a civil court under the Code of Civil Procedure, 1908, and they are limited to three matters:
- Clause (a): summoning and enforcing the attendance of any person and examining him on oath.
- Clause (b): the discovery and production of any document.
- Clause (c): receiving evidence on affidavit.
The section does not say how a summons is served or what follows non-attendance; that is left to the Code of Civil Procedure as it applies to a civil court. The Code is an old law named in the text, so the reader should check the current position. In practice, a member asked to appear or to produce working papers during an inquiry should treat the request as carrying civil-court backing.
The omitted Explanation. Until 10 May 2022 section 21C carried an Explanation that, for the purposes of sections 21, 21A, 21B, 21C and 22, "member of the Institute" includes a person who was a member on the date of the alleged misconduct although he has ceased to be a member at the time of the inquiry. The 2022 Act omitted it and the omission is in force. The enacted but not yet commenced section 22G(3) carries a similar Explanation for "this Chapter", with a limb on firms.
Section 21D: transitional provisions
A transitional section answers one question: which law governs a case that was already running when the law changed?
| 2006 wording (in force) | 2022 wording (enacted, not yet in force) | |
|---|---|---|
| Matters covered | Complaints pending before the Council; any inquiry initiated by the Disciplinary Committee; any reference or appeal made to a High Court | Complaints or any inquiry pending before the Board of Discipline or the Disciplinary Committee; any reference or appeal filed before the Appellate Authority or a High Court |
| Cut-off | Before the commencement of the Chartered Accountants (Amendment) Act, 2006 | Before the commencement of the 2022 Amendment Act |
| Effect | They continue to be governed by the Act as if it had not been amended by the 2006 Act | They continue to be governed by the Act as if it had not been amended by the 2022 Act |
So, today, the section protects only matters that predate the 2006 amendments. The 2022 wording would add a second cut-off once it is brought into force.
Section 22: professional or other misconduct
Section 22 is the bridge between the discipline machinery and the Schedules.
The wording in force (2006). For the purposes of the Act, "professional or other misconduct" is deemed to include any act or omission provided in any of the Schedules. Nothing in the section limits or abridges the power conferred or duty cast on the Director (Discipline) under sub-section (1) of section 21 to inquire into the conduct of any member of the Institute under any other circumstances.
The 2022 wording (enacted, not yet in force). The expression is deemed to include any act or omission, on the part of any member of the Institute either in his individual capacity or as partner or owner of a firm, as mentioned in any of the Schedules. The Director (Discipline)'s power to inquire under section 21(1) extends to "such member or firm" under other circumstances.
Two points follow from the in-force text. First, the word "include" means the Schedules are not an exhaustive list: conduct outside the Schedules can still be inquired into. Second, the Schedules are split by label. The First Schedule has Parts I to III on professional misconduct and Part IV on "other misconduct", and the Second Schedule has Parts I and II on professional misconduct and Part III on "other misconduct". Our articles on the First Schedule, Part I items (1) to (4) and the Second Schedule, Part I items (2) to (6) take the items one by one.
A worked example
CA Anita Verma is a sole practitioner who is asked by the Director (Discipline) to produce her working papers for an audit. If an inquiry reaches the Board of Discipline or the Disciplinary Committee, section 21C lets that body summon her, examine her on oath, call for the documents and take affidavit evidence from the complainant. If the complaint alleges something in a Schedule, section 22 treats it as misconduct for the Act. If it alleges something that is in no Schedule, the Director (Discipline) can still look into it under section 21(1).
Need help with a disciplinary notice or inquiry?
If a complaint, summons or notice has reached you or your firm, a first reading of the allegation against the Schedules is the safest starting point. Our legal dispute resolution practice can prepare the written reply and the documents the inquiry may call for.
Key takeaways
- Section 21C gives four bodies the powers of a civil court on three matters only, for an inquiry under the Act.
- The Explanation to section 21C was omitted from 10 May 2022.
- Under the 2006 section 21D, only matters pending before the 2006 amendments continue under the older law; the 2022 text is enacted but not yet in force.
- Section 22 deems Schedule acts and omissions to be misconduct, and the Director (Discipline) can still inquire under section 21(1) in other circumstances.
Read next
- Section 21 of the Chartered Accountants Act, 1949: the Disciplinary Directorate
- Section 22G of the Chartered Accountants Act, 1949: appeal to the Appellate Authority
- Section 21B: the Disciplinary Committee
- ICAI Code of Ethics 2026: thirteenth edition overview
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.