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The Bar Council of India (BCI) issued a press release on Sunday to address the misgivings surrounding the recently published gazette notification regarding the entry of foreign lawyers and law firms in India.
The BCI in its press clarified that such foreign lawyers/ law firms can offer legal advice/ services only on foreign/ international laws and such advice can be tendered only to foreign clients.
The BCI had on March 10 notified the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 (Rules) paving the way for the entry of foreign lawyers and law firms into the Indian legal landscape.
The Rules enable international lawyers and arbitration practitioners to advise clients in India on foreign and international law.
However, there was confusion surrounding the scope of work that foreign lawyers can do prompting the BCI to issue the clarificatory press release on Sunday.
According to the press release, foreign lawyers can advise clients only on foreign and international laws; they can’t appear in any court, tribunal, board, or regulatory authority that can take evidence on oath.
Foreign lawyers will be allowed to practice only in non-litigation areas and their entry into India will be on a reciprocal basis, it further said.
The following clarifications were offered by the BCI:
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.
They shall be allowed to function in non litigation areas only.
They 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, where Indian lawyers are also permitted to practice.
Foreign lawyers would be allowed to appear for their clients in International Commercial Arbitration.
Bar & Bench had reported on March 16 that the BCI Rules allowing foreign lawyers is limited in its scope to advice on foreign law and such advice can be given only to a person, firm, company, corporation, trust, society etc. who/which is having an address or principal office or head office in a foreign country.
The BCI in its press release said that it believes that these rules will encourage multinational corporations and foreign commercial entities to use India as a venue for arbitration proceedings, thus promoting India as a hub for 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 press release stated.
The BCI highlighted that the Supreme Court of India instructed them and the Government of India to develop regulations for the entry and management of foreign lawyers and law firms, in a case that dates back to March 13, 2018.
The bar body also assured that it is dedicated to defending the interests and well-being of lawyers in the country and that the implementation of the new regulations will not have any effect on Indian lawyers.
It also clarified that the new rule should not be misconstrued mean that just any non-lawyer or business process outsourcing (BPO) company can come to India and start practicing law.
The rules would apply only if there is a reciprocal agreement between the foreign lawyer’s country and India.
