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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

A complainant against CS Neha Iyer, having filed a complaint with fee, writes to the Director (Discipline) withdrawing it while the case is under investigation. What is the correct position under the Act?

The withdrawal must be placed before the Board of Discipline or the Disciplinary Committee, as applicable. That body may permit withdrawal at any stage if it considers that the circumstances warrant it. It does not end the matter automatically or by the Director's decision alone.

  1. AThe complaint stands automatically closed upon the letter being received
  2. BThe Director (Discipline) alone may accept the withdrawal and close the case
  3. CThe withdrawal is placed before the Board of Discipline or Disciplinary Committee, which may permit it at any stage if circumstances warrantCorrect
  4. DWithdrawal is impossible once a prima facie opinion exists

Explanation

Section 21(5) requires the Director (Discipline) to place the withdrawal before the Board of Discipline or the Disciplinary Committee, as the case may be. That body may permit withdrawal at any stage if circumstances warrant. Withdrawal does not automatically end the matter.

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