The Supreme Court has upheld the suspension of an advocate engaged in business as a real-estate agent for unfair practice.
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THE Supreme Court has upheld the suspension of an advocate who sold a property that is the subject matter of a suit in which the advocate was engaged as the counsel.
A division Bench comprising Justices Abhay S. Oka and Pankaj Mithal issued the Order recently while hearing an appeal filed by advocate Syed Altaf Ahmed against his suspension by the Bar Council of India (BCI) for five years.
Ahmed had appeared for the complainant as his advocate in a suit. While still engaged in the matter, Ahmed had obtained a general power of attorney (PoA) from his client and sold the property to a third party.
As Ahmed could not produce any evidence to show that the consideration received by him was paid over to his client, the BCI declared his actions as a case of professional misconduct.
During the hearing of the petition, the Bench noticed a reply filed by Ahmed before the disciplinary committee of the BCI.
The reply revealed that Ahmed, a practising lawyer, was engaged in a real-estate business of selling and buying the properties.
The Bench observed it to be gross professional misconduct.
"The appellant has stated that the transaction with his client was in his capacity as a real estate agent.
"Thus, the statement made by the appellant on oath makes out a case of gross professional misconduct on his part apart from the misconduct already held as proved by the impugned Order.
"Therefore, the direction to suspend him as an advocate for five years is fully justified," the Bench noted while dismissing the appeal.
As per the Standards of Professional Conduct and Etiquette of the BCI, an advocate should not by any means bid for, or purchase, either in his own name or in any other name, for his own benefit or for the benefit of any other person, any property sold in any legal proceeding in which he was in any way professionally engaged.
However, it does not prevent an advocate from bidding for or purchasing for his client any property provided the advocate is authorised, in writing, to do so.
The Bar Council of India Rules also prohibit a lawyer from personally engaging in any business.
However, he can act as a sleeping partner in a business firm, provided such business is not, in the opinion of the state Bar Council, inconsistent with the dignity of the profession.