Case details

Citation: AIR 1972 SC 46

Court: Supreme Court of India

Bench: S.M. Sikri, C.J.I.; A.N. Ray, J.; D.G. Palekar, J.

Date of Judgment: 15 September 1971

Appeal No.: Civil Appeal No. 2607 of 1969

Statutory Provisions Involved: Sections 35 and 38 of the Advocates Act, 1961


Background

This case pertains to the professional misconduct of an advocate, Mr. N.B. Mirzan, who allegedly exploited his client's lack of legal knowledge and education for personal gain. The matter arose from complaints made by a former client regarding misappropriation of funds under false representations. The case presented an opportunity for the Supreme Court to interpret the scope of professional ethics and disciplinary accountability of advocates under the Advocates Act, 1961.


Facts of the Case

The appellant, N.B. Mirzan, was an advocate enrolled with the Bar Council of Maharashtra. Respondent No. 2, Saidur Rehman, had engaged him for legal representation in obstructionist proceedings initiated in the Presidency Small Cause Court, Bombay. At the time of engagement, the appellant demanded Rs. 190 under the pretext of purchasing court fee stamps. Subsequently, he demanded and received Rs. 975 from Rehman’s wife, allegedly to deposit in court as rent. Later, an additional sum of Rs. 250 was collected on the ground that it was required for transferring the rent bill in Rehman’s name.

Despite these payments, it was found that no such deposits or procedural steps were necessary, and the appellant had not taken any substantive action with regard to the stated purposes. Instead, the sums were misappropriated. Furthermore, an attempt was made by the appellant to fabricate a receipt (Exhibit 2) suggesting he had returned the money, which was later found to be suspicious and unreliable by both Disciplinary Committees.


Procedural History of the Case

The complaint against the appellant was filed before the State Bar Council of Maharashtra on 27 October 1964. After a detailed inquiry, its Disciplinary Committee held that the appellant was guilty of professional misconduct on three counts, all of which involved moral turpitude. Consequently, the Committee directed that the appellant be permanently debarred from practising law and ordered him to surrender his Sanad.

The appellant preferred an appeal before the Bar Council of India. The Disciplinary Committee of the Bar Council of India confirmed the findings of guilt but modified the punishment. Instead of permanent disbarment, the appellant was suspended from practice for five years and was directed to pay Rs. 850 to the complainant within two months. Failure to comply would result in the reinstatement of the original order. Aggrieved by this decision, the appellant approached the Supreme Court under Section 38 of the Advocates Act.


Issues

  1. Whether the appellant was guilty of professional misconduct under Section 35 of the Advocates Act, 1961.

  2. Whether the Supreme Court should interfere with the concurrent findings of fact by two disciplinary bodies.

  3. Whether the punishment imposed was just and proportionate to the misconduct established.


Arguments

The appellant attempted to defend his actions on various grounds. With regard to the sum of Rs. 190, he argued that since there was no formal receipt, he had not received the money, and that his written statement implied denial. This explanation was not accepted, especially as corroborative testimony and diary entries from a third party, Noor Mohammed, supported the complainant’s version.

For the Rs. 975, the appellant produced a questionable receipt (Exhibit 2), allegedly signed and thumb-impressed by the complainant, his wife, and his brother, acknowledging repayment. However, the document was found to be fabricated. The court noted multiple irregularities in the document’s preparation, including overwritten names, suspicious formatting, and the presence of unreliable witnesses.

The explanation for the Rs. 250 received was inconsistent. At one point, the appellant stated that the amount was for a proposed declaratory suit to transfer the rent bill. However, no such suit was ever filed, and the explanation changed over time. The inconsistencies led both Disciplinary Committees to conclude that this amount too was obtained through deception.


Judgment

The Supreme Court declined to interfere with the concurrent findings of fact made by the State Bar Council and the Bar Council of India. The Court held that ordinarily, it does not review concurrent findings, but in the present case, it independently examined the facts to ensure no injustice had occurred.

It confirmed that the appellant had exploited the ignorance of his client and wrongfully obtained and misappropriated amounts under false representations. The Court found the fabricated receipt and explanations untrustworthy, and upheld the decision of the Bar Council of India. The appeal was dismissed with costs, and the five-year suspension along with the conditional repayment of Rs. 850 was maintained.


Significance

This judgment is significant in reinforcing the high ethical standards expected from legal professionals. It clarifies that lawyers occupy positions of trust, and any breach of that trust, particularly involving moral turpitude or dishonesty, cannot be tolerated. The case also affirms the discretionary power of disciplinary authorities in recommending punishment based on the gravity of misconduct and demonstrates the limited scope of judicial interference in such findings, unless a gross miscarriage of justice is evident.

The Court’s detailed examination of the fabricated receipt and the shifting explanations provided by the appellant further underscores its intolerance toward fraudulent conduct and misuse of professional status.


Conclusion

The Supreme Court’s decision in N.B. Mirzan v. Bar Council of Maharashtra serves as a vital precedent in legal ethics and disciplinary proceedings. It highlights the responsibility advocates have in maintaining integrity and the confidence of their clients. The judgment affirms the role of the disciplinary machinery under the Advocates Act and emphasizes that justice must not only be done but must also be seen to be done, especially in the realm of professional conduct.