Lawyers, while appreciating the Bar Council of India’s (BCI) move to allow entry to foreign lawyers and law firms in India, have said regulations are balanced and protect the interest of Indian lawyers.
BCI, a body that regulates the legal profession and education in the country, recently allowed foreign law firms and lawyers to practice in India, albeit in a restricted manner and on the basis of reciprocity.
The notification, however, does not permit foreign lawyers to appear in Indian courts and tribunals.
BCI’s decision comes five years after the Supreme Court in an order held that there was no bar for foreign law firms or foreign lawyers to visit India for a temporary period on a “fly in and fly out” basis to give legal advice to their clients in India regarding foreign law or their own system of law and on diverse international legal issues. The SC judgment asked the BCI to make appropriate rules in this regard, including extending the Code of Ethics in such cases.
The rules
The rules framed by BCI permit foreign lawyers and law firms to play only an advisory role to their clients in India. Furthermore, foreign law firms have to mandatorily register in India and renew the registration every five years.
The BCI also 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 practice law in the corresponding foreign country.
The BCI has the power to limit the number of registration of foreign lawyers or law firms to maintain a balance, to ensure complete reciprocity or to protect the interest of Indian law firms/Indian lawyers.
Also Read: Foreign lawyers and law firms can practice in India in major rule tweak
‘Balanced move’
Ankur Mahindro, managing partner at Kred-Jure Advocates and Legal Consultants, notes that BCI’s move to allow foreign law firms is a balanced one as it will be impossible for foreign lawyers to work in India without employing numerous local lawyers, thus creating new job opportunities.
“At the same time, the policy contains sufficient safeguards to ensure that foreign law firms do not establish dominancy in India by limiting their days of travel in India and restrictions on practising Indian law,” he said.
Parinay Shah, partner at UrjaPraxis Law Chambers, observed that BCI’s move to permit foreign lawyers and law firms in India is a step in the right direction towards opening up the legal market in India.
“The Bar Council could consider allowing foreign law firms to establish offices or collaborate with local law firms in these regions, which would not only provide a much-needed boost to the local legal ecosystem but also bring in investment. It is important to strike a balance between opening up the legal market and protecting the interests of Indian lawyers and litigants, and this can be achieved by careful regulation and enforcement of the existing rules,” he said.
Also Read: Foreign Lawyers in India: Globalisation of legal practice necessary for growth
‘Will improve law practice standards’
Shashank Agarwal, advocate at the Delhi High Court, said BCI’s move will open new avenues for lawyers and law students to also experience international law and legal practices. “This move will lead to growth and a further improvement in the standards of law practice in India,” he said.
Shri Venkatesh, managing partner at SKV Law Offices, said the move is net positive because with the foreign law firms setting offices in India, the Indian law fraternity would benefit by gaining access to best international practices and at the same time largely not being affected as foreign lawyers are barred from practising Indian law.
“The rules being the umbrella framework do not specifically define the areas of practice for foreign lawyers, therefore, it remains to be seen whether the Bar Council of India over course of time would permit non-litigious Indian law practice to such firms,” he said.
Increased competition in the legal market
Shoubhik Dasgupta, partner at Pioneer Legal, said, “The introduction of foreign law firms will lead to increased competition in the Indian legal market which ultimately benefits the clients and all lawyers involved.”
He, however, notes that it needs to be seen how the regulations are developed further and how the markets react. “Foreign law firms will be excited at the opportunity,” Dasgupta said.
Likely boost in lawyer salaries
Archana Balasubramanian, partner at Agama Law Associates, said that the announcement comes on the heels of a number of other ideas to which the Indian legal sector has already been opening up.
“Foreign law firms coming in will add further urgency to Indian law firms’ plans in this regard while also opening all sorts of innovative possibilities. There's also hope for a boost to compensation levels for lawyers at all stages of careers, be it associates or partners,” she said.
Also Read: Entry of Foreign Law Firms: A 1991 moment for the Indian legal industry
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