Foreign law firms get a chance to get their foot in the door

According to experts, this will help address concerns about FDI inflows into the country and make India a hub for international commercial arbitration. The Bar Council of India is a statutory body that regulates and represents the Indian Bar.

“The time has come to take a call on this issue. The Bar Council of India believes in opening up the practice of law in India to foreign lawyers in the area of ​​practice of foreign law; Miscellaneous international legal issues in non-judicial matters, and international arbitration matters will go a long way in helping to develop the legal profession/domain in India for the benefit of lawyers in India,” in a gazette notification by the Council. Having said.

It added that the Indian legal community is unlikely to experience any disadvantage when the country allows foreign lawyers to practice law in a limited, well-regulated manner based on the principle of reciprocity.

Till now, foreign law firms or foreign lawyers were not allowed to practice law in India either on the litigation or non-litigation side, unless they satisfied the requirement of the Advocates Act, 1961 and the Bar Council of India rules. However, neither the Act nor the Rules allow foreign law firms or foreign lawyers to temporarily provide legal advice to their Indian clients regarding foreign law or the legal system of their country on a “fly-in and fly-out” basis. prevent them from traveling to India. as well as various international legal issues.

Many countries have already allowed foreign lawyers to practice foreign law, miscellaneous international legal issues and arbitration matters in their countries with certain conditions.

“It is good to see a definite direction now. However, I do not see any knee jerk or overnight mushrooming of foreign law firms or foreign lawyers in the country,” said Rohit Jain, managing partner at law firm Singhania & Co.

A fine print in the rules is that the permission is subject to reciprocity, which means the council will first examine the relevant rules to find out reciprocity with the foreign country concerned, Jain said.

“Effectively, the regulations of the foreign country concerned may also require amendment to implement these regulations. In the long run, perhaps we can see consolidation or acquisition of mid-sized and smaller firms,” ​​Jain said.

According to Jain, foreign law firms will have to retain Indian lawyers to advise them on Indian law. Rule 8 of the Bar Council Rules indicates that foreign lawyers are permitted to advise on matters which involve the laws of their respective countries or are in international arbitration.

Essentially, the rules clarify that a foreign lawyer or law firm shall not be permitted to practice law in India without first registering with the Bar Council of India.

Sameer Jain, Managing Partner, PSL Advocates & Solicitors, believes that the problem area appears to be Rule 8(2)(v) of the Bar Council’s Regulations, which mandates an India-qualified lawyer to be an India-registered foreign law partner. as or otherwise prevents from working. Firm from doing contentious court litigation.

“Essentially, they will be subject to the same restrictions that apply to foreign lawyers. The intent appears to be parity, and I see some logic in it,” said Jain of PSL Advocates.

Jain said, while international arbitration practices have been permitted for international commercial arbitration based in India, foreign lawyers and firms can only represent foreign companies and, possibly, Indian companies having an office in a foreign country.