The Bar Council of India (BCI) on Wednesday allowed foreign lawyers and law firms to practice foreign law in India on a reciprocal basis.
Reciprocal law is a legal status in which one country grants rights and privileges to a citizen of another country, if the same privilege has been given by the first country. Foreign lawyers and firms will be able to debate such laws.
It has been clarified in this rule that foreign lawyers or law firms will not be able to practice without registration in BCI. Foreign lawyers will only be allowed to advise on international law and will not be allowed to practice before Indian courts and tribunals.
The rule states, ‘If the need arises, the Bar Council of India may consult the Ministry of Law and Justice of India in this regard. ,
BCI has permitted international lawyers and arbitration practitioners to practice under the Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 (Rules).
The BCI rules state, “The Bar Council of India is of the view that practice in India should be opened to foreign lawyers in the fields of foreign law, non-litigation diversified international legal matters and international arbitration.” This will open the way for legal professionals in the long run and will also benefit the lawyers of India.
The BCI has said that there is no possibility of any loss to India if foreign lawyers are allowed to practice within the ambit of regulation.
It said, ‘These rules will also help in addressing the concerns arising about the flow of foreign direct investment in the country and India will be able to become the center of international commercial tribunal.’
The response from the legal fraternity has been generally positive, while some stakeholders have raised concerns about bulletproofing.
Welcoming the move, Cyril Schrafft, Managing Partner, Cyril Amarchand Mangaldas said, “I believe this is a progressive step. India’s legal market is ready for change and it will grow. I welcome its opening.
While Gunita Pahwa, Joint Managing Partner, S&A Law Offices, said that she welcomes opening up of India’s legal market to foreign firms and lawyers, but it should be done in a phased manner and there should be proper regulation and guidelines, So that all stakeholders can get equal opportunities to work.
Siddharth Modi, senior partner at Desai & Dewanji, said that where Indian laws are superseded by foreign laws, the BCI and other regulators may need to clarify the situation.
Some experts say that this move will affect the livelihood of people working in the legal sector of India. Abhinay Sharma, managing partner, ASL Partners, said, “A major issue is the employability of fresh law graduates. This is primarily about the different types of legal training and education in India and other countries. This difference can affect employment.
However, Rohit Jain, managing partner, Singhania & Co, does not see any significant impact. “The important thing in the rules is that permission is subject to reciprocity. This means that the Council will first examine the relevant regulations to ascertain reciprocity with the country concerned. In the longer term, we can see consolidation or acquisitions of medium and small firms. But in the present situation – everything is fine.
