Entry Of Foreign Law Firms In India - Stimulator For Opportunity & Growth
The Bar Council of India recently allowed Foreign Lawyers and Law Firms to operate in India on reciprocal basis.
A clarification was also issued on the notification. The clarification was titled as:
'True Facts about BCI’s Rules regarding Entry, Rules and Regulations of Foreign Lawyers and Law Firms in India.'
The press release issued by the Bar Council of India contained the following information:
Allowing foreign lawyers and law firms to advise their clients only regarding foreign laws and international laws.
To render advisory work about those laws only for their foreign clients.
To function in non-litigation areas only.
Not allowing foreign lawyers and law firms to appear in any Court, Tribunal, Board, Statutory or Regulatory Authority or any forum legally entitled for taking evidence on oath or having trappings of a Court.
Entry of foreign lawyers only on reciprocal basis (Permitting lawyers of countries where Indian lawyers are also permitted to practice). Reciprocity is the very essence of the BCI Rules.
Foreign lawyers to appear for clients in International Commercial Arbitration.
BCI rules allowing foreign lawyers and law firms not to be misconstrued to allow any non-lawyers or BPO, etc. To come to India and start practicing in any sphere if it amounts to practice of law as held in Bar Council of India v. A.K. Balaji, (2018) 5 SCC 379.
The clarification has put the doubts and scepticism of the legal community to rest. By keeping the scope of foreign lawyers to foreign and international law and restricting them from practicing in litigious areas, the Council has attempted to keep lawyers free from any real sense of competition.
The scepticism of the Indian legal industry stems from the fear of losing out on clientele due to competition and a slump in revenue generation.
Speaking to BW Legal World, John B. Quinn, Founder, Quinn Emanuel Urquhart & Sullivan LLP, said that, "Just because somebody is a successful litigator in another jurisdiction doesn't mean that their career has prepared them to successfully and professionally litigate in India."
The BCI has been wary of this fact and therefore has carefully carved out the litigious areas from being accessed by foreign law firms. The foreign law firms have been strictly allowed to operate only in matters of international and foreign law.
Dr. Lalit Bhasin, Managing Partner, Bhasin & Co., while speaking to BW Legal World, reckoned that, "It will not hurt the Indian law firms because as I said, we stand on our own strength and we can face these challenges. If the foreign lawyers come and they acquire Indian talent we can also acquire some foreign talent."
Foreign law firms in India will stimulate best practices in India and will make the law grow by leaps and bounds.
Ajit Mishra, Founder, UK - India Partnership, speaking to BW Legal World said, "The Bar Council of India’s decision is a significant step forward which gives restrictive access to foreign lawyers to set up their offices in India and advice on international transactional work on reciprocal basis. As far as litigation practice is concerned, seems there’s no immediate interest among foreign law firms to enter into this space. But as India is moving towards being 3rd largest economy in the world, the commercial litigation in India would become more sophisticated, it’s at that stage when international law firms would like Indian legal sector to further liberalise.”
Law firms and lawyers across the spectrum have given their vote of confidence in the new policy and are waiting to experience the difference.
"As with other international law firms with a strong and established India practice, we welcome the news that foreign lawyers and law firms are to be allowed to operate in India. The additional detail provides helpful clarification, and our India Group will continue to monitor this closely. We will continue to share our expertise with clients on international matters relating to India," said Diwakar Agarwal, Partner, Stephenson Harwood Middle East LLP.
The marketplace of law has a plethora of opportunities and they need to be adequately explored to maximise revenue generation which will help in the growth of the economy.
Bindu Janardhanan, Partner, Squire Patton Boggs, commented that, "Following the introduction of the Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 by the Bar Council of India (BCI), foreign law firms and lawyers will be allowed to practice in certain non-litigious matters in India on a reciprocity basis. We welcome this progressive development and appreciate the efforts of the BCI in taking the initiative to create more opportunities and a more dynamic market. This will be a collaborative exchange of best practice that will benefit India as a whole. We look forward to seeing implementation details of these rules in the coming months."
Legal community is waiting for the implementation of the move with bated breath. As they say, the proof of the pudding is in the eating, so we need to closely observe how things unfold.
