Delhi High Court on Thursday issued notice on plea challenging the notification issued by the Bar Council of India (BCI) last year permitting the entry of foreign law firms and lawyers in Indian legal practice.
The high court has sought BCI’s response and listed the matter for hearing on April 24.
Eight lawyers approached the high court against BCI's notification in March 2023, that allowed entry for foreign lawyers and law firms in India for legal practice. BCI's move was challenged for being in contradiction to the provisions under the Advocates Act and Supreme Court Judgment in AK Balaji case.
The BCI allowed entry to foreign lawyers and firms, saying that it won't hurt Indian lawyers and law firms as they are as competent as their foreign counterparts.
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However, nine days after the announcement, the BCI clarified that the foreign lawyers/ law firms in India will be restricted to advise clients on foreign laws and international laws. The BCI also said that it has made this decision keeping in mind the AK Balaji verdict by the top court.
The BCI had said that foreign lawyers and law firms can advise their clients about Foreign laws and International laws only. And they would do advisory work about such laws only for their foreign clients. It further clarified that they "will be allowed to function in non-litigation areas only and will 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."
The BCI also clarified that the entry will only be for those foreign lawyers who come from a country that have similar provisions for Indian advocates. The foreign lawyers will also be allowed to appear for their clients in International Commercial Arbitration.
In its AK Balaji verdict, the Supreme Court upheld that foreign law firms/companies or foreign lawyers cannot practice the profession of law in India either in the litigation or in non-litigation side.
The top court ruled that there was no bar for the foreign law firms or foreign lawyers to visit India for a temporary period on a “fly in and fly out” basis for the purpose of giving legal advice to their clients in India regarding foreign law or their own system of law and on diverse international legal issues.
However, the top court clarified that the expression “fly in and fly out” will only cover a casual visit not amounting to “practice”. And in case of a dispute the truth can be ascertained by the Bar Council of India.