Section 25 of The Cost Accountants Act, 1959
Penalty for using name of the Council, awarding degrees of cost accountancy, etc.
- (1)Save as otherwise provided in this Act, no person shall,--
- (i)use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it as to deceive or as is likely to deceive the public;
- (ii)award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute; or
- (iii)seek to regulate in any manner whatsoever the profession of 1[cost accountants].
- (2)Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, 2[be punishable with imprisonment which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees or with both on first conviction], and on any subsequent conviction with imprisonment which may extend to 3[one year, or with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees], or with both. 4*****
- (4)If the Central Government is satisfied that any diploma or certificate or any designation granted or conferred by any person other than the Institute, which purports to be a qualification in cost accountancy but which, in the opinion of the Central Government, falls short of the standard of qualifications prescribed for cost accountants and does not in fact indicate or purport to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute, it may, by notification in the Official Gazette and subject to such conditions as it may think fit to impose, declare that this section shall not apply to such diploma or certificate or designation
Summary
- No person is allowed to use a name or common seal (an official corporate stamp) that is identical to or closely resembles the Institute's name or seal in a way that is likely to deceive (trick or mislead) the public.
- No person can award any degree, diploma, or certificate, or bestow (officially give) any designation (title) that suggests a qualification or competence in cost accountancy similar to being a member of the Institute.
- No person is allowed to try to regulate the profession of cost accountants.
- A first conviction is punished with imprisonment of up to six months, or a fine of between one lakh rupees and five lakh rupees, or both.
- A subsequent conviction is punished with imprisonment of up to one year, or a fine of between two lakh rupees and ten lakh rupees, or both.
- The Central Government can issue a notification (an official public announcement) in the Gazette to declare that this section does not apply to a specific diploma, certificate, or designation.
Practical examples
FAQ
1. What are the punishments for using the name or seal of the Institute without permission in the Cost Accountants Act, 1959?
According to Section 25 of the 1959 Act, a person who uses a name or seal that is identical to or closely resembles the Institute's to deceive the public can be punished. For a first conviction, the penalty can be up to six months in prison, a fine between one lakh and five lakh rupees, or both. For a second or later conviction, the punishment increases to up to one year in prison, a fine between two lakh and ten lakh rupees, or both.
2. Does Section 25 of the cost accounting law stop people from giving out degrees?
Yes, Section 25 states that no person is allowed to award any degree, diploma, or certificate that suggests a person has the qualifications or competence of a member of the Institute.
3. Can the government allow certain certificates that would otherwise break Section 25 of the 1959 statute?
Yes, if the Central Government is satisfied with a specific diploma or certificate, it can issue a notification, which is a formal public notice, to declare that Section 25 does not apply to that qualification.
4. Is it illegal to try and regulate the profession under the 1959 Act?
Yes, Section 25 prohibits any person from seeking to regulate the profession of cost accountants in any way unless the law specifically allows it.
Test yourself
1.Under Section 25 of The Cost Accountants Act, 1959, what is the fine range for a person's first conviction of using a deceptive name or seal resembling that of the Institute?
2.Under Section 25 of The Cost Accountants Act, 1959, who has the power to declare that a specific diploma or certificate is exempt from the restrictions of this section?
3.Under Section 25 of The Cost Accountants Act, 1959, what is the maximum imprisonment for a subsequent conviction of attempting to regulate the profession of cost accountants?
4.Under Section 25 of The Cost Accountants Act, 1959, which of the following activities is strictly illegal for a person?