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Rules to allow foreign law firms and foreign lawyers - IAS Academy in Coimbatore

Context

• The Bar Council of India (BCI) has framed Rules to allow foreign law firms and foreign lawyers to open offices in India.

Bar Council of India (BCI)

• The Bar Council of India (BCI) is a statutory body set by the Parliament under the provisions of the Advocates Act, 1961.
• BCI is entrusted with the task of regulating and representing the Indian bar.
• BCI performs the regulatory function by prescribing standards of professional conduct and exercising disciplinary jurisdiction over the bar.
• BCI also plays an important role in setting the standards for legal education and recognition of universities whose degrees in law will serve as a qualification for enrolment as an advocate.

Background

• In March 2018, the Supreme Court allowed foreign law firms and foreign lawyers to visit India for a temporary period for giving legal advice to their clients.
• The apex court had ruled that there was no restriction on foreign law firms or lawyers to visit India and provide legal advice to their clients and had asked the BCI to formulate suitable rules in this regard.
• Five years after the Supreme Court’s ruling, BCI has now formulated the “Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022”.

Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022

• As per the provisions of the Advocates Act, advocates registered with the BCI alone are entitled to practise law in India and all others, such as a litigant, can only appear with the permission of the court or authority before whom the proceedings are pending.
• The notification of the new Rules now facilitates foreign lawyers and law firms to practise foreign law, international law, international arbitration, joint ventures, mergers and acquisitions, intellectual property matters, etc. on a reciprocal basis in India.
• However, foreign lawyers and firms cannot practise Indian law.
• Further, foreign lawyers and law firms will be allowed to register with BCI to practise in India only if they are entitled to practise law in their home countries.
• Such foreign lawyers and firms are only authorised to engage in non-litigation aspects of the legal field and are hence not permitted to appear before any courts, tribunals, or other quasi-judicial authorities.
• With the introduction of new Rules, Indian lawyers working with foreign law firms will now be restricted to engage only in “non-litigious practice.”

Implications of the new Rules

• As per the BCI, the move will help to address the concerns regarding the flow of Foreign Direct Investment (FDI) into the country.
• The move is also expected to help make India a hub for international commercial arbitration.
• Further, the legal fraternity in the country is not likely to suffer any disadvantage with the law practice being opened up to foreign lawyers in a restricted and regulated manner.
• The principle of reciprocity in the Rules makes sure that the Rules would benefit both Indian as well as foreign lawyers mutually.
• Experts also believe that allowing foreign law firms to set up their offices in India would be huge for corporate legal practice in the country as competition leads to improvement in legal services.
• The move would allow foreign law firms to hire Indian lawyers which can expand the legal job market and will also bring in various technological advancements such as artificial intelligence (AI) into legal service delivery.
• However, critics believe that the move will result in lawyers deserting the real need in India i.e. defending and fighting for rights and the “corporatisation” of law practice in the country.