News Highlights:
- Recently, the Bar Council of India (BCI), a statutory body governing legal practice in India, has framed Rules that allow foreign lawyers and law firms to open offices in India.
- However, it did not allow them to appear before courts, tribunals or other statutory or regulatory authorities.
Key Points:
- Supreme Court say:
- On March 13, 2018, a division bench of Justices A.K. Goel and U.U. Lalit had ruled that foreign law firms or foreign lawyers cannot practise law in the country either on the litigation or non-litigation side.
- However, the court said there was no bar on foreign law firms or foreign lawyers visiting India temporarily to give legal advice to their clients.
- The court had also asked the BCI to make appropriate rules in this regard.
- BCI Decision:
- For over a decade, BCI opposed allowing foreign law firms in India.
- Now, the BCI has reasoned that its move will address concerns about the flow of Foreign Direct Investment in the country and make India a hub of International Commercial Arbitration.
- The rules bring legal clarity to foreign law firms that currently operate minimally in India.
- The BCI said it “resolves to implement these Rules enabling the foreign lawyers and Foreign Law Firms to practice foreign law and various international law and international arbitration matters in India on the principle of reciprocity in a well-defined, regulated and controlled manner.
- What powers does the BCI have?
- For foreign lawyers and firms to practise in India, a primary qualification is required in the form of a certificate by a competent authority of their country, which states that they are entitled to practise law in that country.
- Their registration in India with the BCI is mandatory and must be renewed every five years.
- Moreover, the BCI has the right to refuse to register any foreign lawyer or law firm if it is likely to become disproportionate to the number of Indian lawyers or law firms registered or allowed to practise law in the corresponding foreign country.
What are the New Rules?
- Overview:
- The notification allows foreign lawyers and law firms to register with BCI to practice in India if they are entitled to practice law in their home countries. However, they cannot practice Indian law.
- According to the Advocates Act 1961, advocates enrolled with the Bar Council alone are entitled to practise law in India. All others, such as a litigant, can appear only with the permission of the court, authority or person before whom the proceedings are pending.
- They shall be allowed to practice transactional work /corporate work (Non-Litigious Practice) such as joint ventures, mergers and acquisitions, Intellectual Property matters, drafting of contracts and other related matters on a reciprocal basis.
- They shall not be involved or permitted to do any work about the conveyancing of property, title investigation or other similar works.
- Indian lawyers working with foreign law firms will also be subject to the same restriction of engaging only in “Non-Litigious Practice.”
- Significance:
- These rules will help to address the concerns expressed about the flow of Foreign Direct Investment in the country and making India a hub of International Commercial Arbitration.
- Many countries have already allowed foreign lawyers to practice foreign law and diverse international legal issues and arbitration matters in their countries in restricted fields with specific and prescribed conditions.
- Entry of foreign law firms will support in a big way the ambition of India to be more visible and valuable in a global context, especially in international trade and commerce.
Bar Council of India (BCI):
- About:
- The BCI is a statutory body established under section 4 of the Advocates Act 1961 that regulates legal practice and legal education in India.
- Its members are elected from amongst the lawyers in India and represent the Indian bar.
- Structure:
- It consists of members elected from each state bar council, the Attorney General of India and the Solicitor General of India, who are ex officio members.
- The council elects its own chairman and vice-chairman for a period of two years from among its members.
- Functions:
- It prescribes standards of professional conduct.
- It also sets standards for legal education
- grants recognition to universities for a law degree
- Safeguard the rights, privileges and interests of advocates
- Promote and support law reform
- Deal with and dispose of any matter to which a State Bar Council may refer
- Organise and provide legal aid to the poor.
- Recognise foreign qualifications in law obtained outside India for admission as an advocate.
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Content Source: The Hindu