India will soon allow UK lawyers and firms to operate within its legal market. The Bar Council of India (BCI) plans to notify amended rules by the end of July. This announcement made during a meeting at the Law Society’s Hall in London, which included representatives from the BCI, the Law Society, and the Bar Council of England and Wales.
New Delhi: The Bar Council of India (BCI) expected to announce and implement revised regulations for the entry of foreign lawyers and law firms by the end of July.
Initially, this opening of the Indian legal market will be exclusive to lawyers and law firms from the United Kingdom (UK).
BCI revealed this development during a meeting with the Law Society and the Bar Council of England and Wales, which took place at the Law Society’s Hall in London.
The initiative to liberalise the Indian legal market gained momentum in March last year when the BCI issued the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022.
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Subsequently, a press release dated March 19, 2023, issued by the BCI, indicating that foreign law firms would be permitted to establish offices in India solely to advise their foreign clients on foreign laws.
Despite this, the Rules not put into effect due to objections raised by the Society of Indian Law Firms (SILF). Additionally, the Law Society and the Bar Council of England and Wales sought further clarification on the regulations.
A petition also filed in the Delhi High Court challenging these Rules.
During a meeting on Thursday at the Law Society, various matters concerning the amended regulations discussed.
The meeting commenced with opening remarks from Law Society President Nick Emmerson, who stated,
“Given the regulations passed last year, we are eager to explore how we can collaborate more closely with the BCI on these rules and their implementation. India is an extremely important jurisdiction for us, and it is a privilege to host the Bar Council of India as we reaffirm our mutual interests.”
BCI Chairman Manan Kumar Mishra elaborated on why the 2023 Rules have not yet been implemented. He emphasized that the BCI open to allowing the entry of UK lawyers and firms into the Indian legal market.
However, a significant concern for the BCI the potential entry of international law firms headquartered in London into India. Currently, the BCI intends to open the market exclusively for British lawyers and firms, while firms from other jurisdictions can only operate in India on a ‘fly-in, fly-out’ basis.
Several issues discussed during the meeting:
- The primary issue discussed Rule 8(2)(v), which stipulates that an advocate enrolled with any State Bar Council in India, who a partner or associate in a foreign law firm, can only handle non-litigious matters and provide advice on laws of countries other than India.
The Rules specify,
“Such a Lawyer shall have no advantage/right of his being an Advocate enrolled in India.”
The Law Society advocated for fewer or no restrictions on Indian lawyers working for foreign firms. Mickael Laurans, the Law Society’s Head of International, stated that it was about creating opportunities for Indian lawyers.
He said,
“It is also a question for you (BCI) to decide what you want for Indian lawyers in terms of opportunities to join international law firms and what work they can do as part of that. There may be particular sensitivities around litigation, but our preference would be for fewer restrictions,”
Emmerson added that UK lawyers not interested in litigation in India.
The BCI agreed to review this particular Rule and consider making certain amendments, emphasizing that Indian lawyers in the UK should receive the same reciprocal treatment.
- The second issue discussed was the definition of “foreign law.” According to the current Rules, foreign law is defined as a law that is or was effective in the country of primary qualification.
Laurans suggested that they would like their lawyers to offer English and international legal services, ideally in partnership with Indian lawyers handling Indian law.
The BCI indicated that they would examine this technicality further.
- The next issue was the definition of “foreign client,” currently defined as individuals who are citizens of a foreign nation or firms/corporations/business entities with their registered office/head office in a foreign country but having a branch/regional office or manufacturing unit in India.
The Law Society suggested that opening offices in India solely to advise foreign clients would be redundant, as this could be done from foreign jurisdictions.
The BCI agreed to this suggestion and decided to amend the definition to include Indian clients as well.
- The fourth issue raised the duration for fly-in and fly-out visits. The current limit is 60 days, but both the Law Society and the Bar Council of England and Wales requested that it be extended to 90 days.
The BCI agreed to consider this and make necessary adjustments in line with the Supreme Court’s judgment in AK Balaji.
- The UK representatives also raised concerns about the high cost of registering individual lawyers, which the BCI agreed to review.
- Another issue discussed disciplinary jurisdiction. The BCI mentioned that stakeholders had raised concerns that disciplinary jurisdiction should remain with the BCI.
- Regarding international commercial arbitration, the BCI agreed to develop a Code of Conduct applicable to the legal profession, as per the Supreme Court‘s judgment in AK Balaji, which would govern foreign lawyers in international disputes.
As the meeting concluded, Emmerson remarked,
“Everyone here today shares the ambition to strengthen the bonds of friendship between English, Welsh, and Indian lawyers and to further cooperation between our two jurisdictions. As both our countries go through historic general elections this year, and the UK-India free trade agreement negotiations continue, our close ties are more important than ever, underscoring the significance of today’s meetings and tonight’s reception.In recent years, India experienced rapid growth, becoming the world’s fifth-largest economy and aiming to be the third-largest by 2028. A crucial part of continuing this trend is ensuring a robust legal sector. At the Law Society of England and Wales, we have extensive experience in the legal services sector and regulating an open jurisdiction. We wish to continue our excellent engagement with the Bar Council of India and are ready to share our learnings and expertise.”
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BCI Chairman Mishra, in his concluding remarks, said that,
“The meeting was very productive.”
He added,
“We hope all these issues are resolved once we are back in Delhi,”
He said, announcing that the new regulations framed by the BCI will likely be implemented by the end of July,
“We respect the sentiment of our government regarding the free trade agreement (FTA) and will make the necessary amendments to our Rules to suit both the UK and our law firms and lawyers. With your cooperation, the Regulations will be implemented by the end of July.”
BCI Chairman Mishra described the meeting as highly productive and expressed optimism that the discussed issues would be resolved upon their return to Delhi. He reaffirmed the BCI’s commitment to implementing the new regulations by the end of July, aligning with the government’s sentiments regarding the free trade agreement and ensuring the rules benefit both UK and Indian legal professionals.