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.
These three sections give the disciplinary bodies the powers of a civil court, protect cases pending when the law changed, and define what counts as "professional or other misconduct". Section 21C is in force with one change from 10 May 2022. Sections 21D and 22 were substituted by the 2022 Amendment Act, but those substitutions are enacted and not in force; the earlier text stays the law. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
The Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) have the powers of a civil court to summon and examine on oath, order production of documents and receive affidavits. "Professional or other misconduct" includes any act or omission provided in the Schedules, without limiting the Director's power to inquire into other conduct. The 2022 versions of sections 21D and 22 (which add firms and partners or owners) are not in force.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. Section 59 of that Act, which omits the Explanation to section 21C, is in force. Sections 60 and 61, which substitute sections 21D and 22, are not. A later commencement notification should be checked; none was found in the sources consulted.
Section 21C: powers of a civil court
For the purposes of an inquiry under the Act, the Authority, the Disciplinary Committee, the Board of Discipline and the Director (Discipline) have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 in respect of:
- (a) summoning and enforcing the attendance of any person and examining him on oath;
- (b) the discovery and production of any document; and
- (c) receiving evidence on affidavit.
The Explanation, omitted in 2022 (in force). Before 10 May 2022 an Explanation said that for 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. Section 59 of the 2022 Act omitted that Explanation, and the omission is in force. A similar Explanation 1(A) appears in the 2022 text of section 22E, but that change is not in force. A reader should therefore not assume that the Act in force contains an express statement on former members. A member who has left the Institute while an inquiry is pending should take advice.
The Code of Civil Procedure, 1908 is named as printed. Check current law for any replacement or amendment of that Code.
Section 21D: transitional provisions
| In force (2006 text) | Enacted 2022, not in force | |
|---|---|---|
| What it protects | Complaints pending before the Council, inquiries initiated by the Disciplinary Committee, and references or appeals to a High Court prior to the commencement of the Cost and Works Accountants (Amendment) Act, 2006 | Complaints or inquiries pending before the Board of Discipline or the Disciplinary Committee, and references or appeals before the Appellate Authority or a High Court prior to the commencement of the 2022 Amendment Act |
| Rule | They continue to be governed by the Act as if it had not been amended by that amending Act | Same: governed as if the Act had not been amended by the 2022 Act |
The in-force 2006 text is a historical transitional rule: it looks to cases pending in 2006. The 2022 text would do the same for cases pending when the 2022 Act commences. Because the 2022 Act was only partly commenced, which date counts as its "commencement" for such a rule is a point to check when a notification brings section 60 into force.
Section 22: professional or other misconduct defined
| In force (2006 text) | Enacted 2022, not in force | |
|---|---|---|
| Definition | "Professional or other misconduct" shall be deemed to include any act or omission provided in any of the Schedules | Includes 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 |
| Saving | Nothing in the section limits the power or duty of the Director (Discipline) under section 21(1) to inquire into the conduct of any member under any other circumstances | Same saving, extended to such member or firm |
Two points follow. First, the Schedules do not exhaust misconduct: the in-force section says the expression "shall be deemed to include" Schedule acts and omissions, so conduct outside the Schedules may still be inquired into by the Director (Discipline) under section 21(1). Second, the Schedules are the working list. They are explained in our articles on the First Schedule, Part I items (1) to (6), items (7) to (11), Parts II to IV and the Second Schedule (items (1) to (5) and items (6) to (10), Parts II and III).
The in-force section 22 refers to the Director's power under section 21(1). The in-force section 21(1) is the 2006 text that establishes the Disciplinary Directorate; see our article on section 21.
A short example
Hemant Joshi is a cost accountant in practice. A complaint is made that he failed to disclose a material fact in a cost certificate. The Board of Discipline or the Disciplinary Committee, during its inquiry, summons the company's finance manager to give evidence on oath, orders Hemant to produce his working papers, and accepts the complainant's affidavit. All of this is within section 21C. If the conduct is not mentioned in either Schedule but the Director (Discipline) believes it is improper, section 22 does not stop him from inquiring into it.
A member or firm that must respond to a summons or produce documents in an inquiry may want help from legal dispute resolution support.
The same rule for chartered accountants
See Sections 21C, 21D and 22 of the Chartered Accountants Act, 1949. Section 21D here looks to the commencement of this Act's own amending Acts.
Need help in a disciplinary inquiry?
If you have been summoned or asked to produce documents in an inquiry, or want to understand how the Schedules define misconduct, our legal dispute resolution team can help you prepare.
Key takeaways
- The Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) have civil court powers for inquiries: summoning, documents, affidavits.
- The Explanation on former members in section 21C was omitted from 10 May 2022.
- Section 21D in force protects cases pending at the 2006 amendments; the 2022 version is not in force.
- "Professional or other misconduct" includes acts and omissions in the Schedules but is not limited to them.
- The 2022 section 22 adds partners or owners of a firm but is not in force.
Read next
- Section 21: the Disciplinary Directorate
- Section 21B: the Disciplinary Committee
- Sections 22A to 22E: Appellate Authority and appeals
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.