The Bar Council of India (BCI) had permitted international attorneys and law firms to practice foreign law in India on a reciprocity basis, which is a significant move in the Indian legal community. The Advocates Act of 1961 established the BCI as a statutory institution to oversee the regulation of legal practice and instruction in India.
To allow foreign lawyers and arbitration professionals to provide advice in India, the BCI had published the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022. Nonetheless, the BCI prohibits foreign attorneys from arguing matters before Indian courts. This rule is only applicable to arbitration and non-litigation situations.
The Bar Council of India issued the rules for the foreign lawyers and firms to practice in India. According to reports, they are not permitted to litigate issues before Indian courts, and their time permitted to practice in India is quite short. i.e.Approximately 60 days in a year.
The recent BCI press release stated “There are some misgivings in circulation about the recently published Gazette notification by BCI regarding entry of Foreign lawyers and law firms in India. BCI, therefore deems it appropriate to clarify the issue and place the following facts for the information of all Advocates and general public, so that there is no scope of any misapprehension or misinformation.”
The press release further stated that : –
Foreign lawyers and Law Firms shall be allowed to advise their clients about Foreign laws and International laws only.
They would render advisory work about such laws for their foreign clients only.
Foreign lawyers and law firms shall be allowed to function in non-litigation areas only.
Foreign lawyers and law firms shall not be allowed to appear in any Court, Tribunal, Board, before any Statutory or Regulatory Authority or any forum legally entitled to take evidence on oath and/or having trappings of a court.
Entry of foreign lawyers would be on reciprocal basis only i.e. lawyers of only those countries would be permitted in India, Foreign lawyers would be allowed to appear for their clients in International Commercial Arbitration.
Experience and facts show that MNCs and foreign commercial entities, in case of International Commercial Arbitration, don’t prefer India as a venue of Arbitration Proceedings, because they are not allowed to bring lawyers and law firms from their own countries to advise them in International Commercial Arbitration Proceedings, thus, making them to prefer London, Singapore, Paris etc. as the venue for Arbitration Proceedings.
BCI’s rules will, now, encourage India being preferred as a venue for such International Arbitration Proceedings, thus, helping India become a hub of International Commercial Arbitration.
The Supreme Court, on 13th March 2018 in BCI vs A K Balaji & Ors had directed the BCI or Government of India to frame rules about entry and regulation of Foreign Lawyers and Foreign Law Firms. The directions of the Supreme Court were to be followed.
BCI, therefore, stepped in to bring out these rules allowing foreign lawyers entry in a very restricted sphere which is not going to impact at all Advocates practicing in India. BCI stands committed to protect and safeguard interest and welfare of Advocates in the Country and requests the entire Advocate’s fraternity to welcome these rules in National Interest, the press release stated.
It was further clarified that this rule should not be misconstrued to allow any non lawyer or any BPO, etc. any agent, to come to India and start practicing in any sphere, and/or under any trading style, if in pith and substance, it amounts to practise of law as held in A. K. Balaji & Ors. Moreover reciprocity is the very essence of the Rule, which may be kept in mind.
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