CA Exams : Will Consider Opt-Out Students' Plea For Back-Up Exam Within 2 Weeks, ICAI Tells Supreme Court

The Institute of Chartered Accountants of India (ICAI) assured the Supreme Court on Thursday that it will consider within two weeks the request made by the CA students who opted out of the July cycle exams due to COVID related difficulties for holding a back-up exam this year itself.

In view of this assurance made by Senior Advocate Ramji Srinivasan on behalf of the ICAI, a bench comprising Justices AM Khanwilkar, Hrishikesh Roy and CT Ravikumar disposed of an application filed by opt-out students seeking back up exam.

Arguments of the applicants

Advocate Prashant Bhushan, who appeared for the applicants, submitted that as per the June 30 order passed by the Supreme Court, the ICAI was obliged to hold a back-up exam for the students who opted out of the July cycle exam due to COVID-related difficulties. However, the ICAI has now said that the opt-out students can attempt the next regular cycle exam which will be held in November this year. This means that the students will lose an attempt which they would have had, Bhushan submitted.

Bhushan also submitted that next year onwards,  the ICAI was changing the syllabus, and hence a back-up exam was necessary to preserve the attempt of the opt-out students of old syllabus.

ICAI's stand

The ICAI's counsel Senior Advocate Ramji Srinivasan assured the bench that the opt-out students will not lose an opportunity, and that their opting out of the July cycle as per the terms of the Supreme Court order will not treated as an attempt.

"There is no loss of opportunity. In July, we said that the students who opt out will have the back up in November...it will be not be treated as attempt. All benefits available to an opt out student will remain as they are", Srinivasan submitted.

He further submitted the last year's experience showed that the holding a separate back-up exam created logistical problems. Hence, the institute decided to keep the back-up exam with the regular cycle.

The bench asked the ICAI's counsel if it was possible to hold one more exam for the old syllabus.

"We will keep it with the next cycle. No one will lose opportunity", Srinivasan replied.

The bench said that it does not want to disturb the ICAI's exam cycle. "We're saying in next cycle you may have an additional exam with old syllabus", Justice Khanwilkar, the presiding bench suggested.

At this juncture, Bhushan raised a point that CA students are treated as graduates of the year they pass the exams. So, if the additional exam is pushed to next year, the students may lose their seniority.

"Let them consider to have a back up exam this year even if they have it after November. If they are given back up this year, they will be treated as pass outs of this year", Bhushan urged.

"They have said that the idea of separate back up was a bad experiment. We will not force them", Justice Khanwilkar said.

"You make a representation. They'll take the issue of seniority also into account. Maybe they'll give you better option", the judge suggested to Bhushan.

Ultimately, the matter was disposed of with the following direction :

"We've heard Counsels. We don't wish to continue this petition further in view of stand taken by Institute that all aspects brought into notice of Institute will be taken into account  and appropriate decision in best interest of candidates will be taken provided same is in consistent with policy and extant Rules.

Accordingly we permit petitioners to make representation through Sr Adv Ramji Srinivasan appearing for Institute who has assured us that an appropriate decision will be taken on representation in 2 weeks"