SC shuts the door on foreign law firms

SC shuts the door on foreign law firms

What happened?

Keeping India’s legal market exclusively for Indians, the Supreme Court on Tuesday ruled that foreign law firms or foreign lawyers cannot practise law in the country either on the litigation or non-litigation side.

What this means?

This means overseas lawyers or firms cannot open offices in the country, appear in courts or before any authority or render other legal services such as giving opinions or drafting documents.

Casual visit

The expression ‘fly in and fly out’ will only cover a casual visit not amounting to ‘practice’, and  adding that any dispute in this issue would be decided by the Bar Council of India.

No absolute right

• The court also ruled that foreign law firms and lawyers did not have an “absolute right” to conduct arbitration proceedings and disputes arising out of contracts relating to international commercial arbitration.
• Though they might not be debarred from conducting arbitration in India arising out of international commercial arbitration, they would be governed by the code of conduct applicable to the legal profession in India.

Legal BOPs exempt

The court said Business Process Outsourcing (BPO) companies providing a range of services to customers like word processing, secretarial support, transcription and proof reading services, travel desk support services and others would not come under the Advocates Act.

Why foreign firms can’t be allowed to practice?

• Sections of the legal fraternity have been opposing their entry, contending that Indian advocates are not allowed to practise in the U.K., the U.S., Australia and other nations, except on fulfilling onerous restrictions like qualifying tests, experience and work permit
• It was also argued that foreign lawyers cannot be allowed to practise in India without reciprocity