FOREIGN LAW FRIMS AND LAWYERS TO PRACTICE IN INDIA

FOREIGN LAW FRIMS AND LAWYERS TO PRACTICE IN INDIA 

 Author: – Tanya Sharma, student of Guru Nanak Dev University, Amritsar

Introduction:

Earlier in the month of March this year, the Bar Council of India released its rules for the registration and regulation of foreign law firms and foreign lawyers in India. After about five years of allowing foreign lawyers and law firms to visit India on a temporary basis to provide legal advice to their clients, the BCI laid down rules that permit them to opening offices in India. By way of its development, foreign law firms and lawyers are permitted to practise law in India, albeit in a restricted, regulated and controlled manner.

This is the first time that foreign law firms and lawyers have been given permission to register under the Advocate Act,1961, which until now was only restricted to Indian citizens.

Principle followed

1. Principle of reciprocity is to be followed during registration i.e. similar facility should be in vogue for Indian lawyers/law firms in the country where the foreign law firm is primarily registered with.

2. It didn’t allow them to appear before courts, tribunals or other statutory or regulatory authorities.

3. They shall not be involved or permitted to do any work related to the conveyance of property, title investigation or other similar works.

4. Indian lawyers working with foreign law firm/lawyers will also be subject to the same rules and regulations of engaging only in “Non-Litigious Practice”.

5.  Once registered in India, the foreign law firm/lawyer must renew the registration after five years.

Significance of the new move

1. It is likely to be a positive move for the potential consolidation, especially for firms dealing in the cross- border mergers.

2. It will help India to become more visible and valuable in a global context.

3. It will help Indian firms/lawyers to achieve more efficiency in talent management.

Judgements on Foreign Lawyers’ Practice in India

The SC, in the BCI vs. AK Balaji case, has held that foreign lawyers could not practice litigation or non-litigation matters in India. They could only advise clients on a “fly in and fly out” basis. However, the SC permitted arbitration matters related to international commercial cases.

Registration

In 2009, the Bombay High Court in the Lawyers Collective vs. Union of India said that under sec.29 of the advocate Act, only those can practice who are enrolled with BCI. Upholding the same, the foreign law firms/lawyers are required to get themselves enrolled under BCI with secretary of BCI under form A.

Conclusion

India being a signatory of the General Agreement on Trade in Services (GATS), a World Trade Organisation (WTO) body, is obliged to open up the service sector to member nations. This move has received a huge support from Indian lawyers and legal firms, as they believe this step will create opportunities for Indian laws to be exposed to the best legal practices around the globe and encourage healthy competition. This will also help Indian law firms to be more efficient in several aspects like talent management, technology and interlocutory applications.